Global energy demand is expected to increase by more than 30 percent within the next 20 years. Meeting this demand without producing harmful greenhouse gas emissions (GHG) is one of the main challenges of this century. Navigating this challenge and meeting the goal of limiting global warming below the international goal of 2°C annually, requires an urgent shift toward a low-carbon economy.
Renewable energy is expected to play a key role in reducing GHG emissions from the energy sector. Renewable power from wind and solar is a proven, competitive source of energy providing a strong contribution to a nation’s gross domestic product (GDP) growth and can mitigate the potential of climate change on a given economy.
Increasing the share of renewables is essential to meet climate goals without decelerating economic growth and reducing welfare. According to the International Renewable Energy Agency (IRENA), doubling the share of renewable energy by 2030 could deliver around half of the required emissions reductions. Coupled with energy efficiency, greater renewables usage could keep the average rise in global temperatures below 2°C annually, preventing, ultimately, the worst impacts of climate change.
Today, renewable energy technologies are increasingly recognized as investments that can provide direct and indirect economic advantages. Renewable power can reduce domestic dependence on imported fuels, thereby improving trade imbalances and enhancing energy security while propelling economic development and creating jobs.
Decreased costs of renewable energy technologies are making a global energy transition not only possible, but also less expensive than traditional forms of energy. As a result, an increasing number of commercial and industrial (C&I) companies are investing in renewables to provide their energy needs, including Apple, IKEA, Amazon, Wal-Mart, and Lego.
Many studies have analyzed the costs of addressing climate change compared to the costs of inaction, reaching the broad conclusion that the overall costs and risks of climate change would outweigh the costs of current mitigation options. Further, the studies find the potential impacts of climate change on water resources, food production, public health and the environment, among others, will provoke significant losses for the global economy.
The European Regulation 1227/2011 on wholesale energy market integrity and transparency (REMIT) obligates market participants to publish inside information in an effective and timely manner.