According to the US Energy Information Administration, total global energy consumption is expected to increase by almost 50% by 2050.
The demand for renewable energy in most market segments is growing rapidly and is expected to accelerate in 2022.
To meet this growing global demand without resorting to fossil fuels again, massive investments in infrastructure, research and technology are needed. In 2021 alone, about $750 billion will be spent on clean energy technologies, which is considered insufficient to put the energy system on a sustainable path.
As public and private spending increases to combat climate change and address environmental, environmental and governance issues, investors will see their positions increase along with demand.
In 2021, the renewable energy sector showed remarkable resilience following a year of unprecedented demand in 2020.
Despite supply chain constraints, rising transportation costs and rising prices for key raw materials, renewable energy prices have fallen faster than the industry expected and are gradually falling below expected fossil fuel prices.
The sector received a new boost during COP26, at which 197 countries adopted the Glasgow Climate Pact. An indispensable addition to the Paris Agreement, this pact is the first climate agreement to explicitly phase out the production of electricity from coal. In addition, for the first time, a UN climate statement recognizes the need to rapidly reduce the use of coal and other fossil fuels.
The Biden government’s $2 trillion green energy plan aims to fully decarbonise the electricity sector by 2035 before the country achieves carbon neutrality by 2050. This bold strategy is likely to spur growth, especially if the proposed law is passed. In particular, the solar energy sector is expected to expand in 2022 as the technologies associated with it become more cost-effective. Over the past ten years, the cost of solar photovoltaic devices, which generate electricity from sunlight, has decreased by 8%, making them one of the most cost-effective resources available today. The development of solar and storage installations, the research of floating photovoltaic modules and the expansion of public solar projects into new markets are some of the developments expected in the coming year.
There is no denying that the future belongs to sustainable energy, especially given the international goal of limiting global warming to 1.5 degrees Celsius. The growing priority of investment in renewable energy will lead to the creation of 42 million jobs worldwide by 2050, four times more than today.
The global renewable energy market is expected to continue to grow and reach a valuation of $1.1 trillion by 2027.
Certificate “Lasting Energyresearches companies in the clean energy sector, which includes solar, wind, geothermal, hydroelectric and waste-to-energy, as well as wind turbine and solar module manufacturers. It also offers a global exposure with selected companies from around the world.
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