Solar and wind energy could completely replace fossil fuels to become the world’s energy source by 2050, according to a new report published by the think tank Carbon Tracker. In fact, according to the report’s authors, if wind and solar energy continue their current course, fossil fuels could be displaced from the electricity sector by the mid-2030s.
Solar energy has grown at an average annual rate of 39% over the past decade and almost doubles in capacity every two years, according to the report.
In terms of wind energy, there is an increase in capacity by 17% per year while advances in technology in panels and wind turbines help reduce costs.
Current technology has enabled 6,700 PWh of solar and wind power, according to the researchers, a quantity that is 100 times greater than the energy consumed worldwide in 2019.
The researchers estimate that the continued reduction in costs was likely to lead to an exponential increase in solar and wind energy production, while an annual growth rate of 15% would lead to the primacy of solar and wind energy by 2050.
The report noted that solar energy costs had fallen by an average of 18% per year since 2010, while wind energy prices fell by an average of 9% per year over the same period.
Skepticism remains
Nevertheless, skepticism remains about when the energy transition will take place. Some climate scientists believe that at the moment it is “almost impossible” to limit global warming to the levels set out in the Paris Agreement.
Carroll Muffett, chief executive of the nonprofit Center for International Environmental Law, told CNBC earlier this month that integrated energy structures and continued support for the (non-green) industry have hampered progress towards renewable energy.
And while many global companies are committed to helping accelerate climate change, others are doubling their funding for fossil fuels. Indicatively, of the 60 largest banks in the world, 33 increased their financing in the fossil fuel sector between 2016 and 2020, according to a CNBC analysis of the report Banking on Climate Chaos 2021.
