Investment needed to implement the renewable energy components on NDCs
Nationally Determined Contributions (NDCs) constitute a cornerstone of the Paris Agreement on climate change. Most signatories to the Paris climate accords have included renewable energy in their NDCs, recognising that accelerating the energy transition will be key to achieving the climate goals.
The implementation of renewable energy components in the NDCs will require a scaling-up of investment. IRENA estimates that more than USD 1.7 trillion will be needed between 2015 and 2030 to this end, or on average almost USD 110 billion per year. More than 70% of total investment needed (or USD 1.2 trillion) will have to be mobilised to implement the unconditional targets. A further USD 500 billion will be required in developing countries in the form of international finance to support the conditional targets.
IRENA estimates that, in order to limit the rise in global mean temperature to 2°C by 2100 with a probability of 66%, in line with the objectives of the Paris Agreement, the share of renewables in the primary energy supply must rise from around 15% in 2015 to around 65% in 2050. This is not only technically feasible, but also economically beneficial.
For this to happen, renewable energy investment needs to be scaled up significantly above current levels. The decarbonisation of the energy sector would require a total of USD 25 trillion to be invested in renewables up to 2050, or on average more than USD 700 billion per year.
See the analysis here.
REmap Investment Needs
IRENA’s REmap: Roadmap for A Renewable Energy Future shows that doubling the share of renewables in the global energy mix (up to 36%) by 2030 would require an average of USD 770 billion in investments per year between 2016 and 2030.
The graph shows the renewable energy investment needs that will result from the full deployment of REmap options by country.