Getting to a climate-neutral economy will consume $1 trillion by 2026

Because of the current macroeconomic situation, Goldman Sachs experts have published an update to their analysis of the investments needed to achieve a climate-neutral global economy in 2050. In their assessment, an increase in global annual energy spending of US$1 trillion by 2026 is needed to ensure a stable, affordable, and cleaner energy supply, in line with the UN Sustainable Development Goals.

Clean technologies related to energy efficiency and natural gas substitution (RES, clean hydrogen, biogas) are steadily getting cheaper, analysts note. Outside of this, oil replacement technologies (electric vehicles, biofuels) have become less competitive.

But the biggest policy breakthrough of the year – the US Inflation Reduction Act – is a breakthrough for the hydrogen market and carbon sequestration technologies, Goldman Sachs experts point out.

(WBJ)