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Energy transition will require more than US$18 trillion in investments by 2030, says BCG 

Research reveals that additional investment in energy and infrastructure will be needed to drive the transition within seven years

Research reveals that additional investment in energy and infrastructure will be needed to drive the transition within seven years

Photo: Freepik

New study carried out by the BCG (Boston Consulting Group) show that manufacturing will need invest more than US$18 trillion em industrial infrastructure e fontes de renewable energyas the wind e solar so that goals for reducing de carbon are achieved.

According to BCG data, current policies indicate that temperature rise could reach up to +2,7°C by 2100. To limit global warming to just 1,5°C above pre-industrial levels, it is necessary to accelerate the adoption of renewable energy and other low-carbon solutions.

“More than 775 million people in the world still do not have access to electricity and, at the same time, societies need more than 20 MWh of energy per capita to achieve high levels of prosperity, which is calculated from wealth, economic growth , well-being and quality of life in a country. To reach these points, we need to accelerate, as soon as possible, the replacement and reduction of the use of fossil fuels”, he warned. André Pinto, executive director and senior partner at BCG.

In addition, the research also revealed that of the US$37 trillion needed to boost the energy transition, companies and governments have committed to investing US$19 trillion over the next seven years, but much of this amount should be directed to general market development, in addition to not be guaranteed.

The research also highlighted that by 2030, proven technologies, such as energy efficiency; the electrification of end needs (such as electric vehicles); solar photovoltaics and wind energy will serve as the main foundations of the transition.

“Most of the necessary tools are already available, now we need policies, sharing of success stories and capacity for the transformation to actually occur,” said the executive.

“The challenges of the energy transition should not be underestimated, as well as the opportunities it represents: in the long term, an energy system with a low environmental impact could be the answer to today's problems such as sustainability, accessibility and energy security”, he concluded.

Access the full study on the BCG website.

Yvana Leitão
About the Author
Yvana Leitão

Producer of the Papo Solar Podcast. He has experience producing and preparing journalistic articles. Graduated in journalism from the Escola Superior de Administração, Marketing e Comunicação de Campinas.

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