Renewables to pass coal and gas by 2040

Renewables to pass coal and gas by 2040

Editorial Staff
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According to the New Energy Outlook 2016 from Bloomberg New Energy Finance, renewables will overtake gas by 2027 and, ten years after that, coal. But to follow through on the Paris agreements, further action is necessary

The global electricity system has taken the renewable energy road and even low gas and coal prices will not be cause for backtracking. Instead, by 2040, energy production from renewable sources, particularly from wind and solar power, will be greater than fossil fuel energy production. This is the prediction found in the 2016 New Energy Outlook by Bloomberg New Energy Finance (BNEF), according to which renewables will pass gas in energy production levels by 2027 and then pass coal 10 years after that. The report states that within the next 25 years, global investments in energy output capacity will reach $11,440 billion while the e-mobility sector will increase global electric power demand by 8%. "From now to 2040, $7,800 billion dollars will be invested into renewable energy sources, which will make up 2/3 of the investments in total energy production capacity, while global investments in fossil fuels will be $2,100 billion," said Seb Henbest, head of BNEF for Europe, the Middle East and Africa, as well as the main author to the Outlook. Hoever, regarding CO2 emissions, Henbest added that in order to respect the targets set at the UN Conference on climate change in Paris, significantly greater investments would be necessary.