The International Monetary Fund (IMF) has warned that to achieve net-zero emissions by 2050, green investment will need to increase fivefold, from $900 billion in 2020 to $5 trillion per year in 2030. Emerging and developing countries need US$2 trillion per year, a fivefold increase from 2020. The private sector will need to provide much of the financing for these low-carbon investments. The IMF guidance comes ahead of the COP28 conference in Dubai, where policymakers and governments will discuss future climate mitigation strategies. More than 80% of the 50% emissions reduction target by 2030 can be achieved through existing technologies.
A study by the Council on Energy, Environment and Water (CEEW) shows significant differences in carbon dioxide emissions between average income earners in developed countries and the richest 10% of people in developing countries. The study suggests that developed countries, including China, should adopt a sustainable lifestyle and allocate carbon space to developing countries. Research shows that encouraging the wealthiest people to adopt low-carbon lifestyles could lead to significant emissions reductions and carbon taxes.
Hungary and Slovenia have agreed to build the first gas pipeline between the two countries, while Greece and North Macedonia are completing preparations for their first gas interconnector. This would provide alternative supply routes and allow Hungary and North Macedonia to import liquefied natural gas (LNG), which is becoming the main alternative to Russian gas. Another natural gas interconnector between Serbia and Bulgaria is nearing completion.
The solar power plant funded by the EU Modernization Fund will be built in Chernica, Ilfov County, by the end of 2026. The project, worth RON 14.3 million, will reduce energy costs in buildings such as the county's social welfare home, the Child Protective Service, Ilfov County Hospital and the Obstetrics and Gynecology Hospital by 90%. The power plant will generate 96.91% of electricity consumption and have an annual power generation capacity of 3.7 million lei. Other local authorities are also exploring renewable energy to improve energy security.
Leaders from more than a dozen African countries will gather in Germany for the G20 Africa Compact meeting to promote private investment in Africa. The summit, chaired by German Chancellor Olaf Scholz, aims to coordinate the development agenda and discuss investment opportunities. The event will include bilateral talks with African countries and a Germany-Africa Investment Summit. Germany aims to diversify supply chains, secure a skilled workforce, reduce illegal immigration and achieve a green transition.
India is expected to overtake Southeast Asia and become the second-largest producer of solar modules by 2025, mainly catering to demand in the United States. However, high production costs pose challenges due to the 25% tariff on imported solar cells. Under the Inflation Reduction Act, the United States is developing its own photovoltaic manufacturing capabilities but will still rely on imports. China’s leadership in N-type battery technology is expected to impact the market, accounting for 95% of global expansion. Vertically integrated manufacturers may still find growth opportunities.
The European Investment Fund (EIF) invested 125 million euros in the "Green Energy Solutions Fund" operated by Sustainable Development Capital (SDCL) to establish power projects in places such as hospitals and data centers to reduce energy waste. The investment helped the fund reach its fundraising target of 650 million euros ($707 million) last month. The EIF aims to advance the EU’s policy priorities to combat climate change and deploys 66% of its capital across the EU’s 27 member states.
Asia, driven primarily by India, China and Vietnam, is the global leader in wind and solar development and will account for 52.5% of global capacity by 2022. Sales of electric motorcycles and scooters in the region grew by 3,000% between 2015 and 2022. Despite committing to long-term net-zero emissions targets, India and China still have large coal fleets. A new study highlights the Asian region as the global leader in wind and solar power development, with the fastest growth in wind and solar power generation at 35% per year. Asia's funding of renewable energy will total $532 billion by 2022, accounting for 65% of global spending on renewable energy. The Asia-Pacific region faces climate challenges such as rising sea levels, extreme weather events, and threats to biodiversity and water resources.
Europe's electricity grid is becoming a major bottleneck in absorbing Europe's rapidly expanding renewable energy, the electricity lobby says. The grid is designed to handle capacity in excess of demand, creating a slack space in the system that allows for the growth of clean energy production. This has resulted in a slew of renewable energy projects waiting to be connected to the grid, with Spain and Italy each having more than 150 GW of wind and solar capacity waiting to be connected to the grid. The European Commission is drawing up plans to push for more grid investment, while companies are restructuring networks to send power in different directions.
The International Energy Agency's World Energy Employment Report shows that wages in the energy industry are still higher than in other industries, with mature industries such as oil, gas and nuclear power offering more competitive wages. This is due to a higher proportion of skilled labor, with nuclear, oil and gas jobs typically requiring a bachelor's degree. However, this wage gap creates challenges for workers switching from fossil fuels to renewable energy industries. The IEA's 2023 Energy Employment Survey showed that about 60% of companies raised wages last year to attract workers.