+
Delaying Clean Energy Investment Risks Higher Future Costs
POWER & RENEWABLE ENERGY

Delaying Clean Energy Investment Risks Higher Future Costs

In a stark reminder of the escalating cost of inaction, BloombergNEF?s latest New Energy Outlook report estimates the world must invest $215 trillion by 2050 to eliminate carbon emissions and limit global warming to 1.75 degrees Celsius above preindustrial levels. This figure, reflecting a nearly 10% increase from last year's $196 trillion estimate, underscores the urgent need for accelerated investment in clean energy technologies.

Despite a substantial $1.8 trillion investment in 2023, this amount falls significantly short of the $4.8 trillion annual average required through 2030 to keep global warming in check. As in financial debt, delaying necessary investments only compounds future costs, pushing the world deeper into a climate crisis with potentially catastrophic economic consequences.

Economists from the National Bureau of Economic Research highlight that every additional degree of warming could slash global GDP by 12%, far higher than previous estimates. The planet has already warmed by 1.3 degrees Celsius, and the economic impact of this warming is evident, with global GDP per capita estimated to be 37% lower than it could have been had early action been taken.

BloombergNEF?s report emphasizes the critical role of electrification in the transition to a sustainable energy system. Power generation and usage are pivotal, with six of the nine key technology pillars for a net-zero future focused on these areas. As technologies like zero-emission power, electric vehicles, and heat pumps become more mature and cost-effective, the shift to electrification becomes not only feasible but essential.

The report?s underlying message is clear: urgent and substantial investment in clean energy is crucial to mitigate the severe economic and environmental consequences of climate inaction.

In a stark reminder of the escalating cost of inaction, BloombergNEF?s latest New Energy Outlook report estimates the world must invest $215 trillion by 2050 to eliminate carbon emissions and limit global warming to 1.75 degrees Celsius above preindustrial levels. This figure, reflecting a nearly 10% increase from last year's $196 trillion estimate, underscores the urgent need for accelerated investment in clean energy technologies. Despite a substantial $1.8 trillion investment in 2023, this amount falls significantly short of the $4.8 trillion annual average required through 2030 to keep global warming in check. As in financial debt, delaying necessary investments only compounds future costs, pushing the world deeper into a climate crisis with potentially catastrophic economic consequences. Economists from the National Bureau of Economic Research highlight that every additional degree of warming could slash global GDP by 12%, far higher than previous estimates. The planet has already warmed by 1.3 degrees Celsius, and the economic impact of this warming is evident, with global GDP per capita estimated to be 37% lower than it could have been had early action been taken. BloombergNEF?s report emphasizes the critical role of electrification in the transition to a sustainable energy system. Power generation and usage are pivotal, with six of the nine key technology pillars for a net-zero future focused on these areas. As technologies like zero-emission power, electric vehicles, and heat pumps become more mature and cost-effective, the shift to electrification becomes not only feasible but essential. The report?s underlying message is clear: urgent and substantial investment in clean energy is crucial to mitigate the severe economic and environmental consequences of climate inaction.

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?