The importance of renewable energy development in emerging economies
A new report by the International Energy Agency in cooperation with the world bank and the world economic forum shows that developing countries need concerted international efforts to achieve a sustainable and resilient economic future. Renewable energy transformation in emerging economies is the key.
The future of the world's energy and climate depends more and more on the successful transition of emerging and developing economies to cleaner energy systems, which requires global efforts to make a radical transformation to mobilize and guide a substantial increase in energy. According to a new report from the International Energy Agency, the investment needed.
The special report, launched in cooperation with the world bank and the world economic forum, sets out a series of actions to enable these countries to overcome the enormous obstacles they face in raising funds to build clean, modern and resilient energy systems that can contribute to their growing economies for decades to come.
Investment in renewable energy in emerging economies
According to the report, the annual clean energy investment of emerging and developing economies must increase more than seven times, from less than $150 billion last year to more than $1 trillion by 2030, so as to put the world on the track of achieving zero net emissions by 2050
Unless stronger action is taken, energy related CO2 emissions in these economies, mainly in Asia, Africa and Latin America, will increase by 5 billion tons over the next two decades.
Fatih Birol, executive director of IEA, pointed out:
"In many emerging and developing economies, emissions are rising while investment in clean energy is faltering, creating a dangerous dividing line in global efforts to achieve climate and sustainable energy goals. Countries do not start this journey from the same place; Many people do not have access to the funds needed to make a rapid transition to a healthier, more prosperous energy future, and the devastating effects of the covid-19 crisis last longer in many parts of the developing world.
The gap between the two worlds
The latest trend in clean energy expenditure shows that the gap between developed and developing economies is widening, although the latter's emission reduction profits are much higher. Emerging and developing economies currently account for two thirds of the world's population, but only one fifth of the world's clean energy investment and one tenth of the world's financial wealth. Since 2016, annual investment in various parts of the energy sector in emerging and developing markets has fallen by about 20%, with debt and equity costs up to seven times higher than in the United States or Europe.
Report recommendations
The report calls for a focus on guiding and promoting investment in sectors where clean technologies are ready to be put on the market, especially in the areas of renewable energy and energy efficiency, while also laying the foundation for the expansion of low-carbon fuels and the necessary industrial infrastructure. Fast decarbonization. Economic growth and urbanization. It also calls for strengthening sustainable financial frameworks, addressing barriers to foreign investment, promoting licensing and land access procedures, and reversing policies that distort local energy markets.
Renewable energy creates economic opportunities
The report stressed that with the acceleration of global energy transformation, clean energy investment and activities can create a lot of economic opportunities and employment opportunities for industries that are expected to prosper in the next few decades. Call for clean energy transformation to be people-oriented and inclusive, including actions to establish equitable and sustainable models for universal access to modern energy. Spending on energy-efficient appliances, electric vehicles and construction can provide more employment opportunities, especially supporting the role of women and entrepreneurs in promoting change and improving gender equality.
