The huge amount of money spent on renewables in 2015

Saturday, March 26, 2016, 1:38 PM - The world invested $286 billion in renewable energy sources last year, more than double the amount spent in fossil fuel energy sources such as coal and gas-fired power plants.

That's according to a study led by the United Nations Environment Programme (UNEP), released last week, which found that not only was 2015 a new record year for renewables investment, the dollar amount was six times higher than in 2004.

"Renewables are becoming ever more central to our low-carbon lifestyles, and the record-setting investments in 2015 are further proof of this trend, UNEP's executive director, Achim Steiner, said in a release from the organization. "Importantly, for the first time in 2015, renewables in investments were higher in developing countries than developed."

In raw power terms, renewable energy sources (not counting large-scale hydro projects), accounted for 134 gigawatts of new capacity, compared with coal and gas plants, which each grew by around 40 gigawatts in 2015.

UNEP says if not for new renewable energy sources added in 2015, emissions of CO2, a major greenhouse gas, would have been about 1.5 gigatonnes higher.

Other stats from the report:

• The amount invested in renewables, $286 billion, was more than double that of fossil fuels, at $130 billion
• The developing world spent more on renewables than the developed world for the first time: $156 billion versus $130 billion
• China led the way in total investment, at $103 billion, followed by the U.S. ($44 bilion), Japan ($36 billion) and India ($10.2 billion)

However, the investment figures show only that renewable energy sources are growing faster than the output from fossil fuels. Installed renewable power capacity still only accounts for about one-sixth of the global total, and actual power generated is around one tenth of the total, though those figures have been growing.

Dr. Udo Steffens, president of the Frankfurt School of Finance and Management, which partnered with UNEP in the study, noted that although the climate goals set at COP 21 in Paris call for either low or zero growth in carbon emissions, recent falls in coal, oil and gas prices make "conventional" power generation more affordable.

"Coal-fired power stations and other conventional power plants have long lifetimes," Steffens says. "Without further policy interventions, climate altering emissions of carbon dioxide will increase for at least another decade."

SOURCE: UNEP