Reaching net zero by 2070 needs $75t infrastructure investment
This should be mobilised to renewable energy, amongst others.
More green infrastructure is needed to achieve net zero by 2070, which will require countries investing $75t, or around $1.5t to $2t annually.
In a report, Goldman Sachs said the upward revision is attributed to the extended net-zero timeline to 2070, compared to the previous estimate of $62t by 2060.
This investment can be directed towards increasing uptake of renewable energy and bioenergy, increasing focus on infrastructure investments for networks and charging stations, upgrading industrial plants, and retrofitting buildings and other existing heating infrastructure, amongst others.
Goldman Sachs cited factors that may affect the investment path, such as cost inflation and higher cost of capital that are prominent in offshore wind, whilst solar has been relatively less prone to cost inflation with solar module prices declining versus our previous estimates.
Battery storage expansion, meanwhile, exceeded 2021 expectations aided by falling battery prices, the report said. China led the market with its capacity reaching 30 gigawatts (GW) in 2023 from 5 GW in 2021.
