In our third stage we have left France and continue our journey in Belgium.  The first thing we have done is to get close to the coast in Oostende, in the Atlantic ocean. During the day we have seen some typical windmills that for years have been using wind energy for different functions. Today, wind energy is increasingly being used in our energy model, especially for power generation, where they already represent 25% of the global electricity mix. In spite of the large growth in clean energy investment, reaching the 2^oC scenario requires and acceleration in the pace of investment. Renewable energy should reach more than 50% of the power mix by 2040 and additional investments are also needed in storage and infrastructure as well as in the decarbonisation of other sectors like transport, buildings, etc. Some studies estimate investment required for the next 15 years is slightly over 100 billion dollars.

Investing in a low-carbon economy is also an opportunity. Opportunity for employment, for new industries and competitiveness. Opportunity to improve energy security and resiliency. Basically, an opportunity for growth and development.

The other side of investment is financing, as every investment requires financial resources. Financing comes from diverse sources: general budgets, private investment that collects funds via financial products, multilateral funds defined within the UN Framework Convention on Climate Change.

The Paris Agreement establishes a target to reach 100 billion dollars annually in climate financing in 2020.  This target can be reached maintaining current investment levels but requires clear policies, such as increasing public funds for financing climate action and the establishment of policies that facilitate private mobilisation, for example by applying the “polluter pays” principle.

Moreover, developed economies must collaborate also on capacity building of most vulnerable countries.

Reinforcing financial resources and tools will be one of the key COP23 action lines.

 

Our voices

“A well-functioning financial system is critical to support green infrastructure investment and encourage risk-sharing and transparency. The disclosure of climate risks in portfolios valued into the trillions of dollars is critical and increasingly gaining traction.” Geraldine Ang. OECD

“Renewables-based energy system is technologically possible, economically viable and socially desirable.” Elizabeth Press. IRENA

“The decarbonisation of the economy is viable thanks to the existence of technology already available at competitive prices, and it also generates numerous opportunities for employment and sustainable businesses.” Carlos Sallé. Iberdrola

“Last year renewables accounted for half of global electricity demand growth; in the next 5 years they’ll grow twice as much as coal and gas.” Luis Munuera. IEA

 

More information and quotes

According to OECD, investment required to remain below 2°C is USD 6.9 trillion per year over the next fifteen years for new infrastructure. Only a 10% increase relative to annual infrastructure investment needs before considering climate issues (USD 6.3 trillion).

IEA scenarios show renewables and energy efficiency get us three fourths of the way towards 2^oC

 

More images