How much will a global green energy transition cost?

How much will a global green energy transition cost?

Dubai: An energy panel was held as part of the recent St. Petersburg International Economic Forum, where Rosneft Chief Executive Director Igor Sechin came up with his forecasts on how the industry will shape up. “The green energy transition is not a free lunch,” Sechin said. “It will require enormous investments and will have a significant impact on the global economy. We need to be realistic about the costs and benefits of this transition and make sure that it is done in a way that is fair and sustainable for all.” The consultancy McKinsey estimates that achieving Net Zero will require at least $9.2 trillion in annual spending until 2050 on major industries. Of this, $3.5 trillion is for new low-emission assets and associated infrastructure. According to the assessment made by the IEA, by 2030 investment in “clean energy” should grow almost threefold from the current $1.7 trillion to $4.6 trillion per year - that is, from 2 per cent to 5 per cent of world GDP.