Fossil fuel dominance in electricity generation ending by 2030: RBI
The Reserve Bank of India (RBI) has made an exciting prediction about India's electricity generation by the end of this decade. In its latest report, the RBI says fossil fuels are set to take a backseat, with renewable energy sources expected to make up more than half of the electricity production. This shift has been picking up speed lately, thanks to the rise of clean technologies and record-high investments.
A new era for renewable energy
The RBI report says, "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." This shift toward cleaner energy opens doors for sectors like steelmaking and aviation, where low-carbon options are still getting off the ground.
RBI calls for increased investment in renewable energy
The RBI report is making it clear that we need to pump more money into renewable energy. It suggests that for every dollar currently spent on fossil fuels, we should be putting three dollars into renewable energy in the years ahead. That's a big jump from now, where both sectors get the same amount of investment. RBI is convinced that tripling our renewable energy capacity by 2030 is key to hitting net-zero emission targets by the middle of the century.
Decarbonizing global energy system by 2050: A costly affair
The RBI report estimates that a fully decarbonized global energy system by 2050 will come with a hefty price tag of $215 trillion. Despite the high cost, the report remains optimistic about ongoing efforts to make the financial sector more environmentally friendly. It emphasizes that finding the right balance between public policy interventions and market-based competition will be crucial for this ambitious energy transition.
