In recent years, we observe remarkable growth in the global energy economy. It will deliver large commercial, technological, industrial, and employment gains if you are willing to accept it. This new transition is exciting as playing the free spins no deposit game. On the other hand, we could see the growth of the renewable energy types such as solar and wind. Besides, the electrical vehicles will have a good market without a doubt. However, to accomplish all of this, we need a proper finance supports system. Without it, clean energy expectations might go to waste.
Impact of Covid-19 on Investments
Two-thirds of the world’s population is categorized as developing and emerging economies. However, the clean energy investment is only one-fifth. It only accounts for one-tenth of total global financial wealth. So, you can understand how much contribution currently we are making towards the clean energy sector.
On the other hand, the developing and emerging countries have fallen by 20% since 2016. This fall will reduce the pace of the clean energy transition. Besides, the Covid-19 pandemic impacts this public finance sector. So, during the last two years, we saw a sudden drop in clean energy finances. Also, the pandemic continues to impact various sectors of the market. So, mobilizing clean energy finance is difficult more than ever.
Is Net-Zero Emissions Possible?
Even though the transition into clean energy has its challenges, the current path is encouraging but not easy. As mentioned above developing economies suffered a drop of 8% in 2020. We are expecting a slight rebound in those economics in 2021 and 2022.
To reach net-zero emission in 2050, developing countries need to spend over $1 trillion. Considering the status of their economies, it will take some doing to reach there. However, this is not an impossible task at all. We might reach net-zero emission by 2050, but with the pandemic, it will not be easy.
The Struggles of the Clean Energy Projects
Most developing and emerging economies are operating without a clear vision, regulatory environment, or supportive policy. Because of that, they are unable to reach the intended goal and most of the clean energy project are struggling greatly. Besides, more and more investors are giving up on these clean energy projects. So, the world needs to give these developing and emerging economies a proper vision and workable plan. Otherwise, all of these could become useless.
Key Points that We Should Consider
Here are some key points that everyone should know when it comes to financing the economy and clean energy.
- If the world can reach the net-zero emission, it will open a whole new market for the clean energy sector.
- Developing countries face great challenges to carry on with clean energy projects due to a lack of funds.
- The market for wind turbines, lithium-ion batteries, and solar panels will reach a new height in 2050.
With current challenges, reaching net-zero emission in 2050 seems impossible. On the other hand, clean energy plays a vital role in the fight against global warming. So, we cannot give up.