The energy demand is projected to continue rising with the growth of the global population at a time people increasingly use renewable energy sources. Global warming and climate change are major concerns for the world at present.
According to a recent study, if emissions continue to rise and are not controlled, the atmosphere will warm by approximately 2.7 degrees Fahrenheit above pre-industrial levels by 2040.
It’s important to note that it takes time to replace non-renewable energy resources with renewables. Hence countries have begun to envision a green future.
Government policies regarding climate change and the use of renewable energy are becoming stringent. The future looks green.
In 2017, the global renewable energy market was valued at $928 billion. It is expected to be around $1.5 trillion by 2025, at an annual growth rate of 6.1 percent.
A study by Bloomberg New Energy Finance shows that this industry will receive an investment worth $5.1 trillion by 2030. Further, renewable energy sources will produce over 60 percent of 5,579 gigawatt of new energy capacity.
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The main reason to invest in green energy is quite apparent — to save the environment.
Climate change is directly linked with energy use. Fossil fuels harm the environment, and they have price volatility. Replacing fossil fuels with clean energy sources will prevent the environment.
Investing in sustainable energy will contribute to the preservation of the environment and our health. Renewable energy usage can reduce pollution and minimise the disease rate.
Further, it reduces the emission of greenhouse gases like carbon dioxide. So the significant benefits of renewable energy include low cost, energy efficiency, low emissions, and reusability.
A study by Bloomberg New Energy Finance (BNEF) said that by 2050, 77 percent of investments in new power generation would be in renewables.
In 2020, IRENA (International Renewable Energy Agency) published a report called Global Renewables Outlook. It discusses the socio-economic impact of renewable energy on several scenarios.
Among those scenarios is the Transforming Energy Scenario which says that the transition to renewables, efficiency and electrification can drive overall socio-economic development.
The report further discusses the alignment of energy investments with keeping global warming below two degrees Celsius. Doing so would cost $19 trillion more than the usual business approach. But it would bring benefits worth $50-$142 trillion by 2050.
The growth of the clean energy sector leads to an increase in job opportunities. Currently, over 11 million people work in the renewable energy sector worldwide. More development will lead to employment within small- and large-sized businesses.
It is good to invest in companies that will positively impact the environment and do good for the planet. Rather than seeking short-term profits from your investments, it would be best to think long-term in the context of the renewable energy sector.
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