Investment in renewables could boost the economy after coronavirus

Investment in renewables could boost the economy after coronavirus

The advance towards a renewable-based energy transformation is a great opportunity to meet international climate goals. As it will boost economic growth, create millions of jobs, and improve human welfare by 2050, according to the first Global Renewables Outlook released by the International Renewable Energy Agency (IRENA).

The International Renewable Energy Agency found that accelerating the investment in renewable energy could generate huge economic benefits while also help to tackle the global climate emergency.

Researchers at the intergovernmental organization, say in the report that a rapid expansion of low-carbon infrastructure could be key to resuscitate the global economy after the COVID-19 pandemic. The report says that “the health, humanitarian, social and economic crises triggered by the coronavirus pandemic require a decisive response on a large scale.” 

The agency’s General Director, Francesco La Camera, said the global crisis ignited by the coronavirus outbreak exposed “the deep vulnerabilities of the current system” and urged governments to invest in renewable energy to kickstart economic growth and help meet climate goals.

Governments are facing a difficult task keeping the health emergency under control while introducing major stimulus and recovery measures. La Camera said, “By accelerating renewables and making the energy transition an integral part of the wider recovery, governments can achieve multiple economic and social objectives in the pursuit of a resilient future that leaves nobody behind.”

The report also found that renewable energy could curb the rise in global temperatures by helping reduce the energy industry’s carbon dioxide emissions by 70% by 2050 by replacing fossil fuels.

In this sense, the proposals presented by the study to invest in renewable energy “promises more jobs, greater economic growth, cleaner living conditions, and significantly improved well-being“. For starters, the deployment of renewable energy would quadruple the number of jobs in clean energy to 42 million worldwide by 2050. 

Ignacio Galán, the chairman and CEO of the Spanish renewables giant Iberdrola, said the company would continue to invest billions in renewable energy as well as electricity networks and batteries to help integrate clean energy in the electricity.

A green recovery is essential as we emerge from the COVID-19 crisis. The world will benefit economically, environmentally, and socially by focusing on clean energy,” he said. “Aligning economic stimulus and policy packages with climate goals is crucial for a long-term viable and healthy economy.”

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