Posters

Abstract

The world needs to make this a decade of deep decarbonization, overcoming the urgent and complex challenge of transitioning to a clean-energy system. The scale and pace required is framed by the Paris Agreement – limiting global warming to well below 2ºC, striving towards a limit of 1.5ºC above pre-industrial temperatures by the end of the century – but it starts with the decisions made today. A clean energy transition will happen. The question is whether the world will prioritize the upfront investment needed for an accelerated transition. This will require a change in mindset, technology and behavioural revolutions, innovation, forward-thinking polices, and huge investment. Crucially, we find that a Paris-compliant transition is affordable: the world has the financial capacity to accelerate the transition. This will require massive mobilization and a redirection of capital from fossil fuels into clean energy, while balancing the need to maintain an affordable, reliable supply of energy during the transition. Great divergence in transition: electrification and power from renewables are moving ahead at full speed, while the decarbonization of other sectors is lagging. Signs are that there is capital in abundance looking for green energy projects – and renewables projects such as wind and solar in developed markets have little issue attracting capital, particularly once they have already reached the operation stage. However, as energy systems around the world transition to incorporating increasing volumes of variable generation from renewables, financiers should be aware of the likely shifts in energy market design.