The Intergovernmental Panel on Climate Change (IPCC) has released a report that states the importance that renewable energy plays in our markets today, and also its significance for the future. “The report makes clear that the energy mix chosen will vary from country to country, but renewable energy has a potentially huge role to play in that energy mix and that global technical potential for renewable energy, as a whole, is unlimited,” said Masdar CEO Dr. Al Jaber.
“As well as having a large potential to mitigate climate change, renewable energy can provide wider benefits. Renewable energy can contribute to social and economic development, energy access, energy security, and reduce negative impacts on the environment and health,” stated the report.
The report includes 164 scenarios that could happen with the growth of new renewable energy sources, predicting RE to grow by between three and 20 times. Despite global financial challenges, renewable energy capacity grew in 2009 — wind by over 30%, hydropower by 3%, grid-connected PV by over 50%, geothermal by 4%, solar water/heating by over 20%, and ethanol and biodiesel production rose by 10% and 9% respectively.
According to the report, estimates for the investment needed during this decade alone range from $1.3 to $5.1 trillion. “These projections show the huge scale of the opportunity to invest, creating new jobs, economic growth, and cleaner energy systems,” said Dr. Al Jaber.
However, while Masdar and the UAE is praising the IPCC report, the World Future Council released a statement criticizing the report for failing to suggest efficient measures to finance the renewable energy uptake. “Leaving no doubt about the leading role for renewable energy in the future is good. But it’s not enough! Especially for developing countries concrete policy recommendations such as ‚feed in tariffs’ for renewable electricity and innovative funding mechanism such as the issuing of SDR’s by the IMF are of utmost importance,“ said WFC founder Jakob von Uexküll. “Feed in tariffs are the most powerful mechanism to unleash the development of wind, hydro and solar energy. And we have already passed various learning curves on how to get it right. In this regard, unfortunately the IPCCC report’s summary for policy makers do not give any clear guidance.”
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