Clean energy sources must double by 2030 to avoid catastrophe
The World Meteorological Organization (WMO) conducted its annual multi-agency survey State of climate services energy report this year. The report, compiled by 26 different organizations, concluded that the supply of electricity from clean energy sources will need to at least double by 2030 to limit warming that will disrupt and jeopardize energy security globally. world.
“The energy sector is responsible for around three-quarters of global greenhouse gas emissions. Shifting to clean forms of energy generation, such as solar, wind and hydropower, and improving energy efficiency, are essential if we are to thrive in the 21st century. Net zero by 2050 is the goal. But we will only achieve this if we double the supply of low-emission electricity over the next eight years,” WMO Secretary-General Professor Petteri Taalas said in the press release.
Currently, less than half of the climate actions that countries have submitted to the United Nations Framework Convention on Climate Change have focused on energy sector transition. Contributions to renewable energy sources must double by 2030 to help alleviate water stress, a source needed by fossil fuels and nuclear power plants to generate electricity, and reduce severe weather events caused by the global warming that cause disruptions to the power grid.
Based on current commitments, there is a 70% gap in the emission reductions needed to reduce warming to 1.5 degrees Celsius by 2030. To align with the Paris agreements, 7.1 TW of energy from renewable energy sources will have to be installed by 2030.
“We must urgently respond to the growing impact of climate change on energy systems if we are to maintain energy security while accelerating the transition to zero emissions. This requires long-term planning and bold policy action to spur investments, which in turn must be underpinned by comprehensive and reliable weather and climate data,” said Dr Fatih Birol, Executive Director of the International Climate Agency. energy, in the press release.
Investments must triple by 2050
To reach the goal of net zero global emissions by 2050, investments in renewable energy will have to triple, according to the report. Developing countries are currently massively underrepresented and underfunded for clean energy financing, and renewed attention needs to be given to broader energy sector transition.
Source of images: World Meteorological Organization State of Climate Services 2022
KraneShares offers a host of climate-related products that seek to capture the transition to a zero-emissions world by 2050, whether with a focus on carbon emissions or the transition of industries.
KraneShares’ range of carbon allocation funds includes the KraneShares Global Carbon Strategy ETF (KRBN)an ETF that invests in global carbon allowance futures from the EU, California, RGGI and the UK, the most focused KraneShares European Carbon Allowance Strategy ETF (KUA)and the KraneShares California Carbon Allowance Strategy ETF (KCCA). The KraneShares Global Carbon Offset Strategy ETF (KSET) is the first US-listed ETF offering investors exposure to voluntary carbon markets.
For an approach targeting companies in transition, KraneShares Global Carbon Transformation ETF (KGHG) seeks to capture the true potential of the carbon transition by focusing on companies in industries that have traditionally been among the most polluting but are on the verge of transitioning to renewable technologies.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.