The phasing out of fossil fuels by 2100 has been announced by the G7.
The issue is, of course, dependent upon investment and as the Guardian reports, Angela Merkel said the leading industrialised countries were committed to raising $100bn (£65bn) in annual climate financing by 2020 from public and private sources.
Four things. First, note the delay, as ever.
Second, I do not think we have that long.
Third, note how low the estimate is. There has been many higher estimates.The International Energy Agency estimates that energy investment in excess of US$ 50 trillion will be needed by 2035 if we are to prevent more than 2°C of warming. The disparity is enormous.
Fourth, if you want proof of the need for Green Infrastructure Quantitative Easing then this is it.
The $100 billion a year is the extra amount that the rich countries are going to give the poor ones. The $50 trillion is the total amount that will be (might be, needs to be) spent on all energy infrastructure by everyone. And, of course, the rich countries will be spending the majority of that $50 trillion in the rich countries. Because it’s the rich countries that actually have energy systems currently.
Just to give an indication: global GDP is some $70 trillion a year at present. Some $60 trillion (arguable, but reasonable) is in the rich countries ($35 trillion or so just EU and US). Over 20 years to 2035 that’s, without growth, $1,200 trillion. From which we need $50 trillion. 4% of GDP.
What is current capital expenditure in the economy? Not obvious that we need to pay Ritchie for a scheme to make it happen, is it?