RBI: Fossil fuels to lose dominance by 2030 in generating electricity, renewable energy will account for more than 50%

New Delhi| The dominance of fossil fuels in power generation in India will end by the end of the decade. The Reserve Bank of India has made this claim in its latest report. The report states that the share of renewable energy in electricity generation globally is expected to cross 50 per cent. According to the report, the energy transition has accelerated in recent years. Apart from this, the pace of deployment of clean technology and capital investment has reached record levels.

“The era of fossil fuel dominance is coming to an end, and the share of renewable energy in electricity generation globally is expected to surpass 50 percent by the end of this decade”, the RBI said According to the report, increasing clean energy production will help sectors like steelmaking and aviation, where the option of low carbon emissions is still in its initial stages. The central bank also highlighted the importance of increasing investment in low-carbon energy.

RBI said, “Clean power generation can lead to aggressive carbon emission reductions, there is an urgent need for this”. This will allow more time to tackle sectors such as steelmaking and aviation, where cutting carbon emissions is currently the challenge.”

The report notes that for every dollar invested in fossil fuels, an average of three dollars needs to be allocated to renewable energy in the coming years, significantly higher than the current ratio, where similar investments are being made in both sectors. Used to be. Tripling renewable energy capacity by 2030 is considered imperative to meet net-zero emissions targets by mid-century.

“On the energy supply side, for every US dollar spent on fossil fuels, an average of US$3 should be invested in low-carbon emission energy over the rest of the decade”, the RBI said In the report, RBI has highlighted that the estimated cost of a completely carbon-free global energy system by 2050 will be US$ 215 trillion.

However, the report remains optimistic about ongoing efforts to green the financial sector. It stresses that striking the right balance between public policy intervention and market based competition will prove to be the key towards achieving the achievement of this ambitious energy transition. The central bank also said there has been a significant improvement in financial inclusion as the world moves towards more sustainable energy in the future.