India in annual renewable energy investment
GS Paper - 3 (Energy)
According to a United Nations (UN) report, eighty-four per cent of nearly $1 trillion of global investment in energy transition technologies in 2021 was deployed in China, India, Japan, the US and Europe. The findings were presented in the third brief of the Global Crisis Response Group (GCRG) on Food, Energy and Finance, which was released by UN Secretary-General António Guterres and UNCTAD Secretary-General Rebeca Grynspan.
More about the report
- The report mentions that $4 trillion-$6 trillion in annual investments will be required until 2030 to ensure equitable renewable energy transition.
- However, since 2017, annual global energy-related investments have been $2 trillion-$2.5 trillion. Moreover, these investments are concentrated in China, India, Japan, the US and Europe.
- Findings reveal that the Covid-19 pandemic further widened this gap as advanced economies deployed recovery packages with renewable energy targets.
- In other countries, such as the Democratic Republic of the Congo, Niger, Nigeria and Pakistan, the number of people without access to energy increased.
- The report also mentions that the twin blows dealt by the pandemic and the war in Ukraine have also gripped the world in a major energy crisis.
- This has impacted hard-won gains in providing access to energy and reducing energy poverty, thus leading to a “scramble for [fossil] fuel”.
- This makes meeting the targets under the Paris Agreement of not exceeding a global rise of 1.5 degrees Celsius above pre-industrial temperatures difficult.
- The report stresses the need to double down on renewable energy sources to achieve the net-zero goal, tackle energy poverty and boost and diversify the global energy mix.
- According to an International Renewable Energy Agency report in 2021, over two-thirds of newly installed renewable energy power was cheaper than the cheapest fossil fuel alternative in member countries of the Group of 20.