Benefits of transitioning to clean energy
1. Renewable energy sources are around us
Around 80% of the global population (6 billion people) are dependent on imported fossil fuels from other countries, making them vulnerable to geopolitical shocks and crises. In contrast, renewable energy sources are available anywhere and never run out. They give opportunities that allow countries to diversify their economies and no longer become dependent on imported fossil fuels. The International Renewable Energy Agency (IRENA) estimates that 90% of the world's electricity should come from renewable energy by 2050.
2. Renewable energy is cheaper
Renewable energy is the most affordable source of power in most parts of the world. Over 90% of new renewable projects are now cheaper than fossil fuel alternatives. At the same time, solar and wind power are, respectively, 41% and 53% cheaper then fossil fuels. These rapidly dropping prices are making renewable energy more accessible to low and middle-income countries. Creating an opportunity for much of the new power supply over the coming years from low-carbon sources. Renewable energy can also help meet the new electricity demand, particularly for AI and data centers. A typical AI data center takes up as much as 100,000 homes. Renewable energy could provide 65% of the world's total electricity supply by 2030, as well as decarbonize 90% of the power sector by 2050, effectively cutting carbon emissions and help lessen climate change.
3. Renewable energy is healthier
According to the World Health Organization, ~99% of the population inhales air that exceeds air quality limits and could potentially threaten their health. Air pollution is associated with 7 million premature deaths annually. The unhealthy levels of nitrogen dioxide originates mainly from the burning of fossil fuels. Because of this, $8.1 trillion of economic health damage has been caused by air pollution, this roughly equates to 6.1% of global GDP. Thus, switching to clean sources of energy could not only address to only climate change, but also air pollution and health.
4. Renewable energy creates jobs
For every dollar invested, renewable energy creates 3x as many jobs as the fossil fuel industry. Clean energy sector jobs already outnumber fossil fuel jobs, employing about 35 million people. In 2023, 16.2 million people were employed in the sector, up from the 13.7 million in the year prior. In addition, energy-related industries will need 16 million more workers for instances like taking on new roles in manufacturing electric vehicles and hyper-efficient appliances, or in innovative technologies. This means that more than 30 million jobs could be created in clean energy, efficiency, and low-emissions technologies by 2030. To conclude, ensuring a just energy transition in order to place the needs and rights of the people will be paramount to make sure no one is left behind.
5. Renewable energy make seconomic sense
In 2024, $2 trillion went into clean energy, which is $800 billion more than fossil fuels and up almost 70% in 10 years. In the same year, carbon dioxide emissions slowed to 0.8%, while the global economy expanded by 3%. In 2023 alone, clean energy sectors drove 10% of global GDP growth. Even with this comparison, the fossil fuel industry continues to be heavily subsidized. About $7 trillion was spent on fossil fuels in 2022, including through explicit subsidies, tax breaks, and health and environmental damages that weren't included into the cost of fossil fuels. In contrast, only about $4.5 trillion needs to be invested into renewable energy until 2030 - including investments in technology and infrastructure - to reach net-zero emissions by 2050. The upfront cost can be daunting for many countries, but investments will pay off. Additionally, we could save up to $4.2 trillion per year by 2030 from the reduction of pollution and climate impacts due to the transition to renewable energy.642`
References:
United Nations. (n.d.-b). Renewable energy – powering a safer future | United Nations. https://www.un.org/en/climatechange/raising-ambition/renewable-energy