In October, 2024 Goldman Sachs presented its «Carbonomics» report. This report outlined updated decarbonization pathways. According to this data, $74.6 trillion in investments will be required by 2070. These funds must be directed toward key sectors to achieve carbon neutrality.
Sectors Requiring Investments
Renewable energy holds a leading position. In the GS 2.0°C scenario, investments in solar and wind energy are estimated in billions of dollars. Solar energy shows the highest growth. In 2023 installed solar panel capacity exceeded 2,400 GW. By 2030 this figure is expected to increase by 60% compared to the 2021 forecasts.
Nuclear energy also plays an important role. The increase in the installed capacity of nuclear plants by 2030 will exceed previous estimates by 30%. At COP28, more than 20 countries supported the initiative to triple global nuclear capacity by 2050.
Investments are needed not only in renewable energy sources. Energy grids and storage systems are also important. Modernization of infrastructure is necessary for the integration of new energy sources. Global electricity demand is expected to grow 2.7 times by 2060. This requires significant investments in building and developing power grids.
Energy storage is becoming increasingly relevant. Batteries and storage systems ensure the stability of energy supply. According to the GS 2.0°C scenario, they play an important role in maintaining grid balance.
The demand for gas will be lower than previously expected, but it will remain an important transitional fuel. By 2030 its share in electricity production will decrease to 20%. This is lower than the 27% forecasted in 2021. However, hydrocarbons will retain their significance until 2040. Their role is expected to start declining only after this period.
Investments in oil and gas extraction are still necessary. This is due to the increasing demand for these resources until 2050. New projects for oil and gas field development will be required.
The transport sector requires significant investments. The electrification of transport is progressing faster than previously anticipated. In 2023 the share of electric vehicles (EVs) in sales reached 16%. In China this figure was 35%. By 2030 the share of EVs in China is expected to reach 80%.
However, forecasts for other regions have been adjusted. The adoption of EVs has slowed in the U.S. and Europe. Further development of the sector will require investments in charging stations and infrastructure.
Investments are also needed for other technologies. Hydrogen energy is developing more slowly than expected. High production costs and a lack of projects are slowing the process. By 2030 demand for green hydrogen is expected to reach only 1 million tons.
Carbon capture and storage (CCUS) systems also play an important role. They remain expensive but are essential for achieving climate goals. The volume of captured carbon is projected to increase from 10 million tons in 2021 to 53 million tons by 2025.
Investments in sustainable energy require a comprehensive approach. The main investments will go into developing renewable energy sources, nuclear energy, and infrastructure modernization. Gas and hydrocarbons will maintain their significance over the next few decades. The transport sector needs continued funding to support electrification.
Challenges remain. High costs for new technologies and infrastructure slow down development. However, without these investments, achieving carbon neutrality by 2070 will be impossible.
Prepared by: Alen Serik, expert of the Economy.kz portal
