Renewable energy can improve world economy

Global leaders have another motivator to push for renewable energy.

An International Renewable Energy Agency report says that if renewable energy gains a 36 percent share in the global market by 2030, the world’s GDP would increase by roughly US$1.3 trillion (or 1.1 percent). US$1.3 trillion is more than the combined economies of Chile, South Africa and Switzerland as of today.

Worldwide trade will also shift because of the decrease in demand of oil and coal. The shift would most benefit countries oil importers like Japan, India, Korea, and the European Union. Japan will also have the biggest gain in GDP, reaching up to 2 percent, according to the report.

Improvement to human welfare is estimated to be three to four times greater than the impact on GDP. with global welfare increasing as much as 3.7 per cent. Employment in the renewable energy sector would also increase from 9.2 million global jobs today, to more than 24 million by 2030.

“Mitigating climate change through the deployment of renewable energy and achieving other socio-economic targets is no longer an either or equation,” said IRENA Director-General Adnan Z. Amin. “Thanks to the growing business case for renewable energy, an investment in one is an investment in both. That is the definition of a win-win scenario.”