Increased investments in clean energy technologies are urgently needed to achieve global climate targets. A new report by consultancy firm Wood Mackenzie indicates that annual investments must double to $3.5 trillion to keep the world on track for net-zero emissions by 2050, as outlined in the Paris Agreement.

Strong national climate policies and international cooperation will be essential to bridge this investment gap and accelerate the energy transition. Without decisive action, the world may face a steeper and more costly path to decarbonization.

The report projects that solar and wind power will play a pivotal role in the global energy mix. Their combined share of global power supply is expected to soar from 4.5% in 2015 to 17% in 2024. By 2030, this share is projected to reach between 25% and 36%.

However, the future of natural gas remains uncertain. The report outlines two potential scenarios: a scenario where global warming is limited to 2.5 degrees Celsius, leading to an 11% increase in gas demand by 2050, and a net-zero scenario, where gas demand declines by 47% over the same period.

Prakash Sharma, Vice President and Head of Scenarios and Technologies at Wood Mackenzie, said, “A series of shocks to global markets threaten to derail the progress of the energy transition. Nevertheless, there is still a window of opportunity to achieve net-zero emissions by 2050, but immediate and decisive action is imperative.”