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Low-carbon investments are necessary for driving the energy system transformation called for by both the Paris Agreement and Sustainable Development Goals, as investments are the ‘lifeblood’ of the global energy system. What are the scale and nature of these investments? This page summarises insights from a systematic evaluation of future
Low-carbon investments are necessary for driving the energy system transformation called for by both the Paris Agreement and Sustainable Development Goals, as investments are the ‘lifeblood’ of the global energy system. What are the scale and nature of these investments? This page summarises insights from a systematic evaluation of future energy-related investment needs in multiple climate change mitigation scenarios, from a continuation of today’s trends to those achieving the 2° C and 1.5° C targets. Uncertainty ranges represent differences among the six global integrated assessment models employed in the work. In the year 2015, total investments in the global energy system were approximately 1800 billion US$2015/yr (just over 2% of global gross domestic product (GDP) and about 10% of global gross capital formation in that year).