Researchers from The International Renewable Energy Agency have revised its forecast for the cost of curbing global warming due to the less price of renewables.
Curbing global warming as per the targets set out by 2015’s Paris Agreement will be $10tn cheaper courtesy of the rapidly melting price of renewables, according to the International Renewable Energy Agency (IRENA).
The Abu Dhabi-based group has revised its original estimate for the price of reaching global climate targets for 2050 from $125tn last year to $115tn today, attributing the significant dip to the ever-falling costs associated with building wind and solar farms.
Francesco La Camera, director-general at IRENA, said that the renewable energy is the most effective and readily-available solution for reversing the trend of rising CO2 emissions.
“A combination of renewable energy with a deeper electrification can achieve 75% of the energy-related emissions reduction needed.
He added that the global energy transformation goes beyond a transformation of the energy sector. It is a transformation of the world economies and societies.
IRENA has also stressed the importance of electrification as a key part of reaching the targets set out by the Paris Agreement.
The group claimed if electricity accounted for 50% of energy use by 2050, up from 20% currently, global climate goals would be achievable.
It also argued the energy transition offers a considerable financial incentive, predicting that for every $1 spent, the return would be roughly between $3 and $7, making for an investment payoff of up to $160tn over the next three decades.
“Electrification is emerging as a key solution for reducing emissions but only if paired with clean electricity, which increasingly can be sourced at the lowest cost from renewable energy,” said Mr La Camera.
“The share of electricity in total energy use must increase to almost 50% by 2050, up from 20% today.
He pointed out that renewables would then make up two-thirds of energy consumption and 86% of power generation. Renewable electricity together with deep electrification could reduce CO2 emissions by 60%, thus making biggest reductions necessary in the energy sector.