Dramatically increasing the share of renewable energy in the global energy mix by 2030 would increase GDP, social welfare and employment worldwide, according to a new report by the International Renewable Energy Agency (IRENA).
Renewable Energy Benefits: Measuring the Economics report states that achieving a 36% share of renewable energy in the global energy mix by 2030 would increase global gross domestic product (GDP) by up to 1.1%, roughly $1.3 trillion.
Beyond the increase in the global GDP, the report also analyses country-specific impact, with Japan listed as the country that would see the largest positive GDP impact (2.3%). Australia, Brazil, Germany, Mexico, South Africa and South Korea would also see growth of more than 1% each.
According to the report, the impact of renewable energy deployment on welfare is estimated to be three to four times larger than its impact on GDP, with global welfare increasing as much as 3.7%.
In addition, the employment in the renewable energy sector would also increase from 9.2 million global jobs today, to more than 24 million by 2030.
Adnan Amin , IRENA’s General Director, said: “Mitigating climate change through the deployment of renewable energy and achieving other socio-economic targets is no longer an either or equation. Thanks to the growing business case for renewable energy, an investment in one is an investment in both. That is the definition of a win-win scenario.”
IRENA is an intergovernmental organization made up from 145 members (144 states and the European Union) that promotes the adoption and sustainable use of renewable energy.