UBS estimates around $140 trillion in investments on decarbonizing the world’s energy supply by 2050, according to CNBC.
- UBS notes that at least 55% of the world’s energy consumption should be clean energy to achieve net-zero emissions. At present, clean energy only accounts for 15%.
- UBS said renewable energy is gaining traction due to higher electricity demand, increased urbanization, and population growth while owing its cost efficiency to technological progress and an improved regulatory environment.
- Parties of the Paris Climate Agreement earlier agreed to be carbon neutral by 2025. The nonbinding agreement is a pact among nations to reduce emissions and keep the increase in global temperatures below 2 degrees Celsius or 3.6 degrees Fahrenheit.
- Analysts said that while the agreed-upon energy transition may be a “once-in-a-generation” investment opportunity, there were “countless” ways for this to be achieved.