{"id":140492,"date":"2021-10-11T20:07:43","date_gmt":"2021-10-11T14:37:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=140492"},"modified":"2021-10-16T17:31:55","modified_gmt":"2021-10-16T12:01:55","slug":"public-finance-ought-to-throw-its-weight-by-clean-energy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/public-finance-ought-to-throw-its-weight-by-clean-energy\/","title":{"rendered":"Public Finance ought to throw its weight by clean energy"},"content":{"rendered":"\n

Synopsis:\u00a0<\/strong>With the world trying to achieve the Paris climate target, there is a need to bring more financial commitments and change in policies to achieve this target.<\/p>\n

Introduction<\/strong><\/h5>\n

Solar power is now the cheapest form of electricity in history. Over 90% of power-generation capacity added around the world last year was in renewables<\/p>\n

But to stand a chance of limiting global warming to 1.5\u00b0 Celsius above pre-industrial levels, the world\u2019s energy systems must transform even faster. And that needs governments and public financial institutions to stop supporting fossil fuels<\/strong> and instead support the clean-energy transition.<\/p>\n

Is RE sector being adequately financed?<\/strong><\/h5>\n

To meet the 2015 Paris climate agreement\u2019s 1.5\u00b0C target, the global energy transition needs to progress 4-6 times faster than currently. Fossil fuels still supply 84% of the world\u2019s energy and account for over 75% of global emissions.<\/p>\n

The International Energy Agency\u2019s \u2018Net Zero by 2050\u2019<\/strong> roadmap shows that global energy systems must be fossil-fuel-free by 2040.<\/p>\n

Yet, since Paris, G20 governments have provided more than three times more public finance for fossil fuels<\/strong> ($77 billion) than for renewables every year.<\/p>\n

What favorable factors now exist in the RE sector?<\/strong><\/h5>\n

Investments in RE sector have always been riddled with high upfront costs and lack of large scale adoption issues, but the situation is now changing.<\/p>\n

Dramatic cost reduction<\/strong>: Wind and solar are now cheaper than new coal and gas power plants in two-thirds of the world. The dramatic cost reduction over the decade has transformed options, particularly in poor countries, where renewables-based mini grids offer opportunities to alleviate energy poverty and provide energy access.<\/p>\n

Why investment in RE sector is necessary?<\/strong><\/h5>\n

New jobs:<\/strong> Investment in R.E helps in creating new jobs which further drives the economic growth. According to the International Renewable Energy Agency<\/strong> deploying Renewable at scales could help create 42 mn jobs worldwide by 2050.<\/p>\n

Air pollution reduction<\/strong>: It also helps to reduce Air Pollution.<\/p>\n

What is the global contribution?<\/strong>
\nVarious governments and organizations have made commitments to end the use of fossil fuels and to boost the use of RE sources.<\/p>\n

G7<\/strong>: Members states made a commitment to cease all of their international funding for coal projects by end of 2021.<\/p>\n

South Korea, Japan and China<\/strong>: These countries also agreed to stop funding coal projects overseas in spite of being the world’s largest providers of international coal financing.<\/p>\n

Paris Agreements<\/strong>: More than 85 countries have submitted updated national climate pledges. This shows the trend towards higher renewable energy use and lower reliance on fossil fuels by 2030.<\/p>\n

European Investment Bank (EIB)<\/strong>: EIB also became the 1st<\/sup> multilateral bank to announce an end to all financing for fossil fuel projects by 2021. EIB also provides support to a wind farm in Africa, which provides clean and affordable energy.<\/p>\n

UK<\/strong>: It provides end to new public support for overseas international fossil fuel energy projects, fully shifting investments into renewables.<\/p>\n

What should we do?<\/strong><\/p>\n

In the upcoming COP 26 summit,<\/strong> the focus should be on making more commitments to align International public support fully with the Paris goals.<\/p>\n

Government and Financial Institution should provide resources<\/strong> to provide cheaper, cleaner energy and to end international support for fossil fuel-based power.<\/p>\n

To ensure that every community benefits from the transition in RE, it is important to carefully design the policies<\/strong>. There is a need for global solidarity where, everyone has access to necessary technologies, expertise, investment support and financial strategies.<\/p>\n

Source<\/strong>: This post is based on the article \u201cPublic Finance ought to throw its weight by clean energy<\/strong>\u201d published in Livemint<\/strong> on 11th<\/sup> October 2021<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Synopsis:\u00a0With the world trying to achieve the Paris climate target, there is a need to bring more financial commitments and change in policies to achieve this target. Introduction Solar power is now the cheapest form of electricity in history. Over 90% of power-generation capacity added around the world last year was in renewables But to… Continue reading Public Finance ought to throw its weight by clean energy<\/span><\/a><\/p>\n","protected":false},"author":5480,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[768,10260,216,3222],"class_list":["post-140492","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-energy","tag-green-financing","tag-gs-paper-3","tag-renewable-energy","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704785896},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/140492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/5480"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=140492"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/140492\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=140492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=140492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=140492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}