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The transition to cleaner energy will require billions in investment

The transition to cleaner energy will require billions in investment. A more pessimistic scenario speaks of more than ten billion.

The transition to cleaner energy will require billions in investment
Yazar: Tom Roberts

Yayınlanma: 21 Ekim 2021 18:19

Güncellenme: 28 Mart 2024 00:01

The transition to cleaner energy will require billions in investment

The transition from fossil fuels to a cleaner energy economy will require billions in investment. According to the international law firm CMS, according to the optimistic scenario, the investment could increase up to threefold in the next decade and reach the value of $ 28 billion by 2030. On the contrary, a more pessimistic scenario speaks of investments worth $ 10.4 billion. "The transition to cleaner energy has been going on for the last decade, but in the eighteen months since we published the report on the transition of energy companies, the pressure on the pace of these changes has changed. And the drive for change is constantly increasing. Thanks to this, the transition to a low-carbon economy is crucial for companies, but also for governments and consumers, "said Michal Huťan, partner and head of the local team for energy and infrastructure at CMS Slovakia. The International Energy Agency (IEA), in a report in May this year, predicts that investment in oil and gas extraction will fall to about half the level expected in the next decade in 2030. According to the CMS report, the oil and gas sector is responding to this challenge. While in 2018 the increase in investment in the energy transformation of companies was 2.9 percent, in 2020 it represented an increase of up to 4.2 percent. In recent months, several countries have introduced vaccination programs that can bring about a very rapid economic recovery. "Sustainable energy sources are an essential part of improving the economy of countries, the use of which should be part of government policies. The pandemic caused by the new coronavirus provides an opportunity for countries to transform into low-carbon economies, "said Huťan.
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