The Reserve Bank of India (RBI) has predicted that the use of fossil fuels for making electricity will be reduced by 2030.
“The era of fossil fuels’ dominance is coming to an end, with renewables expected to cross 50% share of electricity generation globally by the end of this decade,” said the RBI.
The report says clean energy has grown fast in recent years, with more investments and technology supporting it. The RBI also mentioned that clean energy could help reduce pollution in tough industries like steelmaking and aviation, where eco-friendly options are still in the developing stage.
RBI said that with every dollar spent on fossil fuels, about three dollars should be spent on renewable energy in the next few years.
Right now, both sectors (fossil and renewable) get almost the same amount of money, but this needs to change. By 2030, renewable energy needs to grow three times bigger to help reach net-zero emissions by the middle of the century.
“On the energy supply side, for every US dollar that goes to fossil fuels, an average of USD 3 needs to be invested in low-carbon energy over the remainder of the decade,” the RBI said.
The RBI also shared that making the world fully green energy optimized by 2050 could cost around USD 215 trillion. Even though this is a huge amount, the report is positive about the efforts to make the financial sector more environmentally friendly.
It also mentioned that it will be important to balance government actions and competition in the market to achieve this big energy change.
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