Spiking renewables to 36% share adds $1.3T to global GDP: IRENA report
In the Emirates, a new International Renewable Energy Agency report finds that 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, roughly USD 1.3 trillion.
The report, “Renewable Energy Benefits: Measuring the Economics,” provides the first global estimate of the macroeconomic impacts of renewable energy deployment. Specifically, it outlines the benefits that would be achieved under the scenario of doubling the global share of renewable energy by 2030 from 2010 levels.
Beyond finding that global GDP in 2030 would increase by up to USD 1.3 trillion – more than the combined economies of Chile, South Africa and Switzerland as of today – the report also analyses country-specific impact. Japan would see the largest positive GDP impact (2.3 per cent) but Australia, Brazil, Germany, Mexico, South Africa and South Korea would also see growth of more than 1 per cent each.
According to the report, improvements in human welfare would go well beyond gains in GDP thanks to a range of social and environmental benefits. The impact of renewable energy deployment on welfare is estimated to be three to four times larger than its impact on GDP, with global welfare increasing as much as 3.7 per cent. Employment in the renewable energy sector would also increase from 9.2 million global jobs today, to more than 24 million by 2030.
Renewable Energy Benefits: Measuring the Economics, builds on previous IRENA analysis on the socio-economic benefits of renewable energy and on REmap 2030, a renewable energy roadmap to doubling the global share of renewable energy by 2030. The study provides a first glimpse of the full range of benefits offered by a renewable energy transition.
Category: Fuels
