The Clean Energy Transition May Be Cheaper Than We Thought: Cost estimates leave out some of the savings of using less fossil fuels, new analysis says. (DAN GEARINO, 1/19/24, MoJo)
The global transition to clean energy has a cost, but it may be a lot lower than the figures that sometimes get thrown around. The differences are large, amounting to trillions and even tens of trillions of dollars.
A new analysis from RMI, the clean energy research and advocacy group, identifies what its authors say is a basic flaw in many of those estimates: They don’t fully take into account the decrease in fossil fuel spending.
“This kind of narrative that there’s a massive surge in capital that’s required is simply incorrect,” said Kingsmill Bond, a co-author of the report and an analyst for RMI whose work covers the financial side of the energy transition.
The report finds that global capital spending (money used for equipment and property, among other things) on energy supply is on track to be about $2.5 trillion in 2030, up from $2.2 trillion in 2023.
“It’s 2 percent per annum growth,” Bond said. “On a net basis, it’s not much.”
And then starts paying for itself.