3. Solar PV installations and electric vehicle sales are hitting milestones outlined in the original Net Zero report.
If fully implemented, currently announced manufacturing capacity expansions for solar PV and batteries would be sufficient to meet demand by 2030. The IEA has also declared that measures designed to promote the uptake of clean energy technologies is ramping up the supply of them. Boosting the supply of renewables and increasing electrification will be a key contributor to significant emissions reductions needed by 2030.
Scaling up renewable energy technologies is essential for cutting fossil fuel demand by over 25 per cent within this decade, and policies which promote and expand clean energy and reduce demand for fossil fuels will lead to a 35 per cent reduction in CO2 emissions generated by the energy sector in 2030 compared to 2022.
Furthermore, tripling global installed renewable energy capacity to 11,000 gigawatts by 2030 will generate the largest emissions reductions. Currently, advanced economies are developing strong policies which place them on track to lessen their contributions to global emissions, but policy support and green technology rollouts among emerging and developing economies is needed to level the global effort to reach net zero.
The IEA report details three key focusses which are critical worldwide for renewable energy growth and net zero progress.
- Extending and modernising electricity grids
- Addressing supply chain bottlenecks
- Integrating variable renewables
4. Green sector innovation is delivering new tools and lowering their cost, but more needs to be done.
Progress in the green technology sector has been significant, with technologies not currently available on the market accounting for around 35 per cent of emissions reductions needed for net zero by 2050 (which is lower than the 50 per cent detailed in the 2021 scenario).
Much of this momentum is concentrated on small, modular clean energy technologies such as solar PV, batteries, and EVs, but larger, smarter and repurposed infrastructure networks, low emission fuels, CO2 capture and storage technologies, more nuclear power, and large areas of land dedicated to renewables are required to drive progress even further.
The IEA’s report estimates that electricity transmission and distribution grids need to by expanded by roughly 2 million kilometres each year to 2030. In addition to this, carbon capture, utilisation and storage (CCUS), hydrogen fuels, and sustainable bioenergy are all in need of rapid progress in order to meet the needs of the NZE Scenario.
5. Clean energy investment in developing countries is a vital step on the road to net zero emissions.
2023 is set to be a year of record investment in clean energy, with $1.8trn being invested. Though this level of investment is significant, it needs to increase to around $4.5trn a year by the early 2030s to align with the IEA’s pathway.
Enhanced international support for clean energy technologies, strong domestic policies, and systems which reduce demand for fossil fuels in developing nations is needed to support a net zero transition. In addition, annual concessional funding into clean energy for emerging markets and developing economies needs to hit around $80bn-$100bn by the early 2030s.
