Davos: $515 billion a year needed for clean energy

What will it take to save the world from the worst of climate change? A report from the World Economic Forum in Davos says we’ll need to spend $515 billion (US) a year on clean energy development between now and 2030 to prevent an unsustainable global temperature rise.

The report, “Green Investing: Towards a Clean Energy Infrastructure,” starts by saying, “At the very time when commentators are branding green investing as a luxury the world cannot afford, enormous investment in the world’s energy infrastructure is required in order to address the twin threats of energy insecurity and climate change. Waiting for economic recovery, rather than taking decisive action now, will make the future challenge far greater.”

The report notes that clean-energy investments increased more than expected last year, with more money also being spent in developing countries. It also identifies four key elements needed for a global shift to clean energy: energy efficiency, smart grids, energy storage, and carbon capture and storage.

The authors base their findings on the assumption that global temperature increases need to be limited to no more than 2 degrees C … which means bringing carbon dioxide emissions down 60 percent by 2030. Meeting that goal requires immediate, large and sustained investment starting now, despite the global economic meltdown, they argue.

“The road to a sustainable energy future is not without its speed bumps,” the authors write. “The short-term challenge for the world’s policy-makers is to maintain the extraordinary momentum of the clean energy industry in these difficult times. To do so, they must use all the tools at their disposal.”