Scroll Top

Reaching Net Zero emissions by 2050 could cost over $92 Trillion says Bloomberg

WHY THIS MATTERS IN BRIEF

Switching the world away from “unsustainable” business models to “sustainable” net zero ones is a herculean and costly task and going green will take a lot of green.

 

Love the Exponential Future? Join our XPotential Community, future proof yourself with courses from XPotential Universityconnect, watch a keynote, read our codexes, or browse my blog.

Have you ever wondered just how much money it might cost the world to wean itself off fossil fuels and become carbon neutral by 2050? Well, now you might have an answer and it’s a big number, after BloombergNEF’s latest report forecast that governments and companies will need to invest at least $92 trillion by 2050 in order to cut emissions fast enough to prevent the worst effects of climate change.

 

See also
This 3D printed heat exchanger extracts up to 500 litres of pure water from air

 

Needless to say thirty years is a short timeframe in which to achieve the scale of transformation that is needed to limit further dangerous increases in global temperatures, and investment in infrastructure to accommodate energy transition will need to rise to between $3.1 trillion and $5.8 trillion annually on average until 2050 – up from about $1.7 trillion in 2020 – BNEF found. That means the final bill could be as much as $173 trillion, about eight times US gross domestic product in 2019.

 

Being sustainable isn’t easy. But it’s possible. Keynote by Matthew Griffin

 

That level of spending would help limit the increase of average global temperatures to 1.75°C from pre-industrial levels, compared with about 1.2°C of warming already present. Without further action, events such as the heatwaves, floods and wildfires experienced around the world in the last few years will get more frequent, dangerous, and costly.

Scaling up the role of electric power underpins all hopes for a drastic cut to greenhouse gas emissions. More than three quarters of the potential decline in emissions this decade will likely need to come from electricity supply and the increasing use of wind and solar power, according to BNEF. Another 14% of the drop in emissions in that period can be achieved from vehicles, homes and industries switching to electric power from burning fossil fuels. Hydrogen will also have a significant role to play, with demand set to soar.

 

See also
IBM will have a 1,000 qubit quantum computer by 2023, says new roadmap

 

Overall, electricity generation will need to at least double by 2050 to almost 62,200 terawatt-hours, making up almost 50% of final energy consumption, compared with about 19% now. A scenario where renewables are the dominant energy source would require even more electricity production. All of that power production will take time to plan, finance and build.

“There is no time to waste,” said Seb Henbest, BNEF’s chief economist. “If the world is to achieve or get close to meeting net zero by mid-century, then we need to accelerate deployment of the low-carbon solutions we have this decade — that means even more wind, solar, batteries, and electric vehicles, as well as heat pumps for buildings, recycling and greater electricity use in industry, and redirecting biofuels to shipping and aviation.”

So far, global leaders haven’t got the message. Less than 15% of the $2.4 trillion that governments spent to support the post-pandemic economic recovery went to investments in clean energy, an inadequate amount to get the world on a path to reach net zero emissions by 2050, according to a report this week from the International Energy Agency. Executives from some of the world’s biggest renewable energy companies called on leaders of the Group of 20 nations to set more ambitious renewable energy targets to have a chance to meet global climate goals.

 

See also
Scientists have found a way to break down Forever Chemicals

 

There are many low-carbon technologies that will form a part of the energy transition. BNEF describes three different scenarios, one where renewables supply the bulk of energy, one where nuclear power grows significantly and one where fossil fuel plants equipped with technology to capture emissions play a dominant role.

These modelling exercises are a staple of the energy industry. That’s because many of the assets built to extract, transport and use energy require huge investments for infrastructure that lasts decades. Looking at how different sources of clean energy can help meet the same climate goal provides policymakers and energy companies with tools needed to make those investments.

In all of BNEF’s scenarios, hydrogen will need to be a bigger source of energy for applications like heavy industry and chemicals production. That could lead to demand of as much as 1,318 million metric tons of hydrogen in 2050, making up about 22% of total final energy consumption, compared with less than 0.002% today.

Related Posts

Leave a comment

FREE! DOWNLOAD THE 2024 EMERGING TECHNOLOGY AND TRENDS CODEXES!DOWNLOAD

Awesome! You're now subscribed.

Pin It on Pinterest

Share This