The historic climate accord from 2015 seeks, at minimum, to limit average global temperature rise to “well below 2°C” in the present century, compared to pre-industrial levels. Renewables, in combination with rapidly improving energy efficiency, form the cornerstone of a viable climate solution.
Keeping the global temperature rise below 2 degrees Celsius (°C) is technically feasible. It would also be more economically, socially and environmentally beneficial than the path resulting from current plans and policies. However, the global energy system must undergo a profound transformation, from one largely based on fossil fuels to one that enhances efficiency and is based on renewable energy. Such a global energy transformation – seen as the culmination of the “energy transition” that is already happening in many countries – can create a world that is more prosperous and inclusive.
Global Energy Transformation: A roadmap to 2050 sets out how an energy transition acceleration could be achieved. It outlines the supply side and demand side technological changes required, and indicates the level of investment needed. It also analyses the costs and benefits of energy transition. It concludes that the additional cost of energy transition (about USD 1.7 trillion annually in 2050) is dwarfed by the benefits (on average USD 6.3 trillion in the same year). If a more broad-based welfare indicator is considered, overall benefits could be much higher. Global GDP would also grow and would be 1% larger in 2050 compared to the Reference Case, which is based on current and planned policies including Nationally Determined Contributions (NDCs). Millions of additional jobs would be created worldwide. In sum, a sustainable energy future is technically and economically feasible.