Renewable energy investment takes center stage globally as the new year unfolds. A fundamental question arises, “Will investments in renewable energy experience a surge in 2024?” The answer, it seems, is an optimism echoing worldwide.
Renewable energy, now considered one of the crucial issues of this century, continues to attract attention as awareness grows about the importance of environmental sustainability and mitigating the negative impacts of excessive use of conventional energy.
In a strong statement, the world commits to tripling renewable energy capacity by 2030, an ambition emphasized during the Conference of the Parties on Climate Change (COP28) hosted by the United Arab Emirates last year.
This trend fuels optimism for increased investments in renewable energy in 2024. Some expected outcomes of this heightened investment include:
- Reducing Carbon Emissions: Renewable energy, such as solar, wind, and hydroelectric, proves to be an effective solution for reducing greenhouse gas emissions and addressing climate change. Shifting away from fossil fuels can create a cleaner and environmentally friendly energy system.
- Diversity in Energy Sources: Investments in renewable energy open opportunities for diversifying energy resources and reducing dependence on limited natural resources. This shift not only supports the economy but also mitigates the impacts of global energy price fluctuations.
- Energy Efficiency and Performance Enhancement: Renewable energy motivates improvements in energy efficiency, reducing resource wastage. Investment in sustainable technologies can decrease reliance on conventional energy and enhance overall efficiency.
- Support for Innovation and Job Creation: Investments in renewable energy drive innovation in the energy sector, creating new job opportunities in renewable and environmental technology industries. This can provide a significant boost to the economy.
- Improving Public Health: Adopting renewable energy can reduce air and water pollution caused by fossil fuels. This has the potential to improve air and water quality, positively impacting human health and reducing pollution-related diseases.
Dr. Samir Tantawi, a UN climate change consultant, emphasizes that renewable energy is currently a primary focus for countries worldwide.
However, he also warns that the transition from fossil fuels will not happen quickly because the required technologies are still in their early stages and need more research and investment.
Alongside increased investment, some positive decisions have been made by major banks, discontinuing funding for fossil fuel projects and shifting support towards clean energy projects. This step is seen as a positive response, especially as the current cost comparison favors renewable energy.
The IMF encourages the private sector to further increase climate-related investments, especially in developing countries, to achieve a net-zero carbon world by 2050.
According to the IMF, trillions of dollars in investment are needed annually by 2030, an amount far exceeding current budgets.
In this context, Maher Aziz, an energy and environmental consultant, highlights that developing countries have significant opportunities to invest in renewable energy.
Renewable Energy Investment 2024
However, he emphasizes that advanced countries need to provide more investment to guide developing countries in adopting clean energy.
As we discuss investments in renewable energy, we cannot overlook the impact of the global economic conditions. Dr. Mahmoud Anbar, a World Bank consultant, observes that the effects of recent economic crises and stringent policies implemented since 2022 have affected sustainable development funding.
Anbar states that placing greater emphasis on investments in renewable energy and reducing heat emissions is a crucial step.
He also highlights that expectations of a Federal Reserve interest rate reduction in 2024 could have a positive impact, considering that this policy has proven ineffective in controlling inflation and has hindered investment.
With all these developments, 2024 becomes a crucial momentum for the transformation towards clean energy. Increased investments, support for innovation, and global awareness of the importance of renewable energy create a solid foundation for a more sustainable and environmentally friendly future.
