RBI: Claim- Fossil fuel dominance in power generation will end by 2030, renewable energy share will be more than 50%

Fossil fuels will no longer be the mainstay of power generation in India by the end of this decade. This is as per the latest report from the Reserve Bank of India. The report stated that renewable energy would account for more than 50 percent of the share in power generation globally. The report that says over the last couple of years, the transformation in energy has gained tremendous momentum. Besides this, the scale of capital investment and the pace of deployment in clean technology has reached a record.

The RBI said, "The era of dominance of fossil fuels is coming to an end and the share of renewable energy in power generation globally is poised to cross 50 percent by the end of this decade." According to the report, an increase in clean energy generation will help sectors such as steelmaking and aviation, where low-carbon options are still in their early stages. It also reiterated the necessity to increase investment in low-carbon energy from the central bank.

The RBI said, "Clean power generation can boost aggressive carbon emission reductions that urgently need to be affine. Buy more time for the sectors steel making and aviation-which are a challenge to reduce carbon emissions.

The report further said that for every dollar invested in fossil fuels, an average of three dollars would be needed for renewable energy over the coming years considerably above the current ratio wherein the two are getting equal investment. Tripling renewable capacity by 2030 is seen as crucial for meeting the target of net-zero emissions by mid-century.

"On the energy supply side, for every US dollar spent on fossil fuels, an average of US$ 3 should be invested in low-carbon energy over the rest of the decade," the RBI said. In its report, RBI also pointed out that the estimated cost of a completely carbon-free global energy system by 2050 will be US$ 215 trillion. Yet the report is optimistic about greening the financial sector, underlining that from a policy perspective, finding an appropriate balance between public policy efforts and market-based competition is crucial for such an ambitious energy transition. The central bank again said that while moving towards a low-carbon energy future, financial inclusions have grown significantly.