We Are Still In
The market will continue driving rapid adoption of renewables despite failing leadership on climate from the United States and Germany
“Things have moved from implausible to inevitable, only briefly pausing at possible.” – Gary Kendall, Sustainability & Strategy Specialist, Nedbank
The past 12 months has seen heavy blows to national leadership on climate change, with President Donald Trump announcing his intentions to withdraw the US from the Paris Climate Agreement, and Germany's position as the global champion of climate action and clean energy slipping dramatically given shifting political and economic realities - and continued reliance on coal use - in that nation. But despite major stumbles from influential political leaders, the outlook for renewable energy and continued progress on global greenhouse gas reductions remains positive.
Markets have reached an inflection point where renewables will have become the cheapest form of new power generation in nearly all markets by 2020. This is largely due to the falling costs of manufacturing for both wind and solar as well as improved efficiency. Continued action from national and subnational actors in the form of ambitious emissions reduction targets at regional and city levels, as well as the expansion of carbon pricing into more sectors and markets, are also spurring continued progress.
Global Benchmark Levelized Cost of Electricity for Solar and Wind, $ per MWh
Bloomberg New Energy Finance's research shows that global average levelized costs of photovoltaics have fallen by 73% since 2009, and onshore wind by 30%. Source: Bloomberg New Energy Finance