World on track to over­shoot warm­ing limit with­out mas­sive in­vest­ments

Arab News - - Business News - Reuters London

The world must com­bine COVID-19 re­cov­ery pack­ages with mas­sive in­vest­ments in re­new­able en­ergy and low-car­bon in­fra­struc­ture or it will fail to meet a global warm­ing limit tar­get, a re­port by lead­ing en­ergy con­sul­tancy Wood Macken­zie said .

Cur­rently, the world is on track for a 2.8 de­grees Cel­sius to 3C rise in the global av­er­age tem­per­a­ture, above an in­ter­na­tion­ally-agreed limit of be­low 2C, the re­port said. “Nearly $20 tril­lion, or 25 per­cent of global gross do­mes­tic prod­uct, is ear­marked for spend­ing over the next 12-18 months to de­liver a coro­n­avirus vac­cine, tackle un­em­ploy­ment, re­build public health sys­tems and get economies back on track,” said Prakash Sharma, head of mar­kets and tran­si­tions for Asia Pa­cific at Wood Macken­zie.

“This in­vest­ment fig­ure only has tiny pro­por­tions al­lo­cated to

the prom­ise of the Paris Agree­ment tar­gets. Some ju­ris­dic­tions, such as the EU, have dou­bled down on green goals, but it is cur­rently up in the air in the US and China,” he added.

One ob­sta­cle is that more than half the world’s ex­ist­ing en­ergy and in­dus­trial ca­pac­ity — power, ce­ment, re­fin­ing, chem­i­cals and ve­hi­cles — is young and has decades left to run its course.

Coal, gas and oil are still ex­pected to con­trib­ute around 80 per­cent of pri­mary en­ergy sup­ply by 2040 — far higher than the 50 per­cent max­i­mum needed for the world to reach net zero car­bon emis­sions by 2050.

Al­though there is in­creas­ing re­new­ables gen­er­a­tion, it is not enough and in­cen­tives are needed for in­vest­ments in car­bon cap­ture, use and stor­age and green hy­dro­gen.

Newspapers in English

Newspapers from Saudi Arabia

© PressReader. All rights reserved.