Investment Requirements of a Low-Carbon World: Energy Supply Investment Ratios
The 2011-2015 low-carbon to fossil energy supply investment ratio was 0.5 low-carbon vs. 1 fossil. For 2016-2020, it was 0.7:1 and in 2022 0.9:1.
To better understand potential capital flows up to 2050, BloombergNEF (BNEF) has analyzed International Energy Agency (IEA), Intergovernmental Panel on Climate Change (IPCC), and Network for Greening the Financial System (NGFS) long-term scenarios.
BNEF compared investment required under each for low-carbon technologies and compared that to potential investment for fossil fuels to produce decadal “energy supply investment ratios”. Scenarios assessed included the IEA Net Zero Emissions scenario (NZE), four* IPCC scenarios aligned with a 1.5°C rise and two NGFS Phase 3 net-zero scenarios.