Renewables to power global GDP

Abu Dhabi - 36% share of sustainable energy in overall mix to hike growth by $1.3t

Achieving a 36 per cent share of renewable energy in the global energy mix by 2030 would increase global gross domestic product by up to 1.1 per cent or roughly $1.3 trillion, according to a new report released on Saturday at the International Renewable Energy Agency (Irena) Assembly taking place in the capital.
The report, entitled "Renewable Energy Benefits: Measuring the Economics" is the first-ever global estimate of the macroeconomic impacts of renewable energy deployment. Current worldwide policies and plans would lead to an increase of renewable energy share in total energy mix of only 21 per cent by 2030, which would allow global warming to reach threatening heights of 2.7 degrees Celsius.

At COP 21, the UN meeting in Paris last December, governments agreed to remain below two degrees Celsius and to do so investments in renewable energy must double by 2030 to reach 36 per cent share in total global energy mix.
According to Adnan Z. Amin, director-general of the Irena, there is no deadline or specific plans how this goal would be achieved.
"The energy transformation will be a holistic approach, as revolutionary as the mobile telecommunications," he said. "This report provides compelling evidence that achieving the needed energy transition would not only mitigate climate change, but also stimulate the economy, improve human welfare and boost employment worldwide."
As per report, doubling investment in renewable energy would increase welfare globally by 3.7 per cent and employment in renewable energy would rise from nine million presently to 24 million jobs by 2030. Oil-exporting countries like the UAE or Saudi Arabia would have economic and welfare benefits too if they engaged further in renewable energy deployment. "Renewable energy is not subsidised in the Gulf region, but it is cheaper than the subsidised fossil fuel. If more renewable energy is deployed, it would be beneficial for the economy," said Amin.
The UAE plans to achieve a total of 12 per cent renewables in the country's energy mix, seven per cent announced by Abu Dhabi and five per cent by Dubai.
"Reaching 15 per cent share of renewable energy in the total energy mix in the GCC would be enough to trigger private investments in renewable energy," pointed out Amin.
- silvia@khaleejtimes.com