Takeaways from BloombergNEF’s Latest Energy Transition Analysis
We are fortunate to share a great piece of analysis from our friends at Bloomberg New Energy Finance. By reading this article you will get the main key takeaways from BloombergNEF.
Climate change thought leader Michael Liebreich discusses the path to see global fossil fuel emissions peak in the coming decade; check out the comprehensive article here! Liebreich: Peak Emissions Are Closer Than You Think – and Here’s Why. Below are a few takeaways on the future of green energy:
Energy efficiency: This pillar of sustainable energy is finally gaining recognition as a priority in many nations. The collective understanding of how to deliver improvements is much better than that of ten years ago, and there are still many easily achieved measures, such as LED lighting, just waiting to be adopted. The main gap in many parts of the world is still a cultural shift to become less wasteful.
Renewables: Two-thirds of the world’s population currently reside in countries in which wind or solar are the least expensive power resources. The world records for electricity from both wind farms and solar are down to $17/MWh, and are expected to come in below $10/MWh by 2030. And by the end of the next decade, it will be economically ill-advised to construct a new building without solar panels. BNEF predicts that total wind and solar generation will grow from 8.5% of the global energy mix to around 25% by 2030.
E-Mobility: The electrification of our transport systems is happening fast and will continue its rapid growth. Electric vehicles (EVs) in Norway, for example, have already grown from less than 5% to over 50% in the past decade. Even Benz is on the EV bandwagon, developing an electric motor in lieu of the next generation of its combustion engine for the first time in 135 years.
Oil and gas: Over the past two decades, actual oil demand growth has fallen short of pundits’ predictions, a trend which is likely to continue. Companies in the sector have started to wake up to the world’s view on climate change. Spain’s Repsol, for example, has recently promised net zero emissions by 2050. And 13 major companies from the industry have joined the Oil and Gas Climate Initiative, which is working to develop low carbon solutions in line with the Paris Agreement.
In sum, progress is happening quite rapidly. These trends are predicted even without a change in significant governmental policy related to climate action, which will also likely see an uptick. The next decade should serve to change the narrative, validating to all that we can alter the climate trajectory, and setting the table for more decisive emissions reductions in the future.
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