The world needs to spend $48 trillion between
now and 2035 in order to keep the lights on and meet rising demand
for energy, the International Energy Agency says in its
World Energy Investment Outlook. The bad
news is that if you spend all of that money, the IEA's best guess
is you get a 4 degree world.
The good news is that if we can collectively
muster another $5 trillion - then we can keep the lights on and
avoid dangerous climate change, according to the IEA.
IEA chief economist Fatih Birol says:
"The difference is not
big… The main issue is not to raise additional capital but to
reallocate investments… The world that we would like to see depends
on the right investment decisions."
How much does the world need to
Whatever happens to the climate, the world's
energy systems have huge investment needs over the next two
The IEA thinks we will need to spend nearly $25
trillion on new coal, oil and gas supplies between now and 2035
(far left, below).
That's to meet its 'new policies scenario' where
countries make some new efforts to tackle emissions but there is no
global concerted action on climate.
Another $16 trillion will need to be spent on power
stations and the transmission networks that distribute power to
homes and businesses (blue columns, centre). And $8 trillion will
be needed to make homes, cars and factories more efficient (below
IEA World Energy Investment Outlook