Energy transition to generate US$10 trillion in benefits by 2050 – IEA/IRENA

March 20, 2017
Facebook
Twitter
LinkedIn
Reddit
Email
Credit: IEA/IRENA

The route to decarbonisation in the energy sector will create benefits of US$10 trillion every year by 2050, while requiring only US$1.8 trillion to implement, according to a new joint report from the International Energy Agency (IAE) and the International Renewable Energy Agency (IRENA).

In their first ever collaboration, IEA and IRENA found that a total of 6 million jobs would be created, even when accounting for jobs lost in other industries. Further jobs will also be created in the energy efficiency sector. However, the report also found that losses at oil and gas companies could reach more than US$1.3 trillion if the transition is not managed properly.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The report stressed that efforts on the transition need to be stepped up urgently to stay in line with the targets of the Paris Agreement.

IRENA director-general Adnan Z. Amin, said: “Critically, the economic case for the energy transition has never been stronger. Today around the world, new renewable power plants are being built that will generate electricity for less cost than fossil-fuel power plants. And through 2050, the decarbonisation can fuel sustainable economic growth and create more new jobs in renewables.

“We are in a good position to transform the global energy system but success will depend on urgent action, as delays will raise the costs of decarbonisation.”

Costs of the energy transition up to 2050 are projected to reach US$29 trillion by 2050, roughly 0.4% of global GDP, but these costs are expected to then boost global GDP by 0.8% in the same period.

The report said renewable energy now accounts for 24% of global power generation and 16% of primary energy supply. All attempts to make wind and solar the largest power generating sources must also be accompanied by a major effort to redesign electricity markets to integrate large shares of variable renewables.

IEA released a report last week that sought to debunk myths and misinformation surrounding grid integration of renewables at early stages, saying that it “requires little extra effort”, but also explaining to policy makers what key steps are needed at latter stages.

The report ‘Perspectives for the Energy Transition: Investment Needs for a Low-Carbon Energy Transition', also noted that buildings, industry and transport sectors need more bioenergy, solar heating and electricity from renewable sources that substitute conventional energy. Electric vehicles must dominate the industry, liquid biofuel production must grow ten-fold, while high efficiency all-electric buildings should become the norm.

Read Next

October 23, 2025
Aviva Investors and Astatine have announced an €800 million (US$928 million) investment in renewable energy and decarbonisation solutions.
Premium
October 17, 2025
According to Ronak Maheshwari of CRC-IB, there has been a struggle for US renewable power projects to secure necessary equity .
October 16, 2025
Masdar and Turkey have entered the final stage of US$1 billion agreement to develop the 1.1GW plant in Bor, Niğde Province, central Turkey.
October 15, 2025
A report by IRENA and others has highlighted the need for yearly renewable energy deployments to almost double between now and 2030.
October 14, 2025
Apple will support 650MW of projects as part of a major expansion of its renewable energy investments in Europe, aimed at reducing its carbon footprint.
October 7, 2025
Solar PV will account for almost 80% of the 4.6TW of new renewable power expected to be added by 2030, according to the International Energy Agency (IEA).

Subscribe to Newsletter

Upcoming Events

Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 10, 2026
Frankfurt, Germany