Meeting 1.5°C Target Needs $460bn More Per Year
Meeting the Paris Agreement's climate goals requires significant additional investment. A new study finds that limiting global warming to 1.5°C would need an extra $460bn per year globally over the next 12 years, while a 2°C limit requires $303bn per year. This is a fraction of the $1,700bn invested in the global energy system in 2016.
The research, a first to compare investment needs for 1.5°C and 2°C scenarios, shows that the difference is substantial. For the 1.5°C target, an additional $458bn per year would be needed, compared to $132bn for current climate pledges. This highlights the urgent need for a far faster increase in low-carbon energy and energy efficiency investment.
The European Union, including Germany, is urged to intensify investments in renewable energy infrastructure. The EU aims for at least 42.5% renewable energy share by 2030, with accelerated approval processes and infrastructure development. Germany targets 80% renewable electricity by 2030, aligned with climate policies. Coal investment, however, does not change significantly between the two scenarios.
The study underscores the vast difference in investment needs between the 1.5°C and 2°C targets. To meet the more ambitious 1.5°C goal, an extra $460bn per year is required. This is a substantial but manageable amount, considering the $1,700bn invested in the global energy system in 2016. The $100bn per year in climate finance promised by rich countries could also play a significant role in helping developing countries meet their climate targets.
