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

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

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

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

June 24, 2025
Imbalances in investment mean that action will be needed if the solar industry is to help meet the world’s climate change targets.
June 19, 2025
Boralex is driving organic growth across Canada, the US, France, and the UK, fueled by a project pipeline totalling 8GW.
June 17, 2025
The World Bank has approved a loan of around US$600 million to support the development of 540MW of new solar and wind capacity in Indonesia.
Premium
June 12, 2025
Equipment-driven underperformance in PV power plants has tripled over the past five years, according to Raptor Maps.
June 12, 2025
Sustainable Energy for All (SEforALL), an independent organization, hosted by the United Nations Office for Project Services (UNOPS) has partnered with Indian government-owned electricity generator the National Thermal Power Corporation (NTPC).
June 5, 2025
Policy uncertainty in the US is likely to disrupt investment in clean energy, according to a recent report from Crux.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA