A research by consulting firm Wood Mackenzie stated on Thursday that a global expenditure of $2.7 trillion a year is required to achieve net zero emissions by 2050 and prevent temperatures from increasing over 1.5 degrees Celsius this century.
In order to prevent catastrophic repercussions from climate change, scientists have stated that the world should ideally keep the rise in average global temperature to 1.5C this century. To help with this, a lot of countries have committed to cutting emissions to zero by the middle of the century.
The majority of nations, however, are not on course to even fulfil their 2030 or 2050 emissions objectives, according to the research.
Net zero refers to reducing emissions as near to zero as feasible while having any leftover emissions reabsorbed from the atmosphere, for instance by seas and forests.
According to the UN, governments’ current promises to reduce emissions would likely leave the globe on course to warm by 2.5C by 2050 and fail to prevent global temperatures from increasing beyond 1.5C.
According to Wood Mackenzie, $1.9 trillion in annual investment is required to decarbonize the energy industry, and this amount must rise by 150%, or $2.7 trillion annually, to keep global warming to 1.5 degrees Celsius. The infrastructure and electricity industries require three-quarters of that investment.
The paper stated that in order to promote the electrification of transport and the creation of green hydrogen, renewable energy sources like wind and solar power must become the primary source of power supply worldwide.