IRENA calls for rapid electrification to meet 1.5 °C climate goal

The International Renewable Energy Agency (IRENA) has released its World Energy Transition Outlook 2026, stating that electrification powered by renewable sources must be a priority through 2035 to meet the 1.5 °C climate goal.

To align with this target, IRENA projects that electricity must account for 35% of final energy consumption by 2035 and over 50% by 2050. By mid-century, solar and wind power are expected to provide more than 80% of electricity. Director General Francesco La Camera emphasized that the transition requires systemic reforms to build an electrified, efficient, and flexible energy system rather than just adding renewable capacity to existing infrastructure.

Economically, the 1.5 °C scenario is estimated to boost annual global growth by 1.1% compared to business-as-usual models, with cumulative gains of approximately $46 trillion by 2050. The report also anticipates that renewable energy jobs could increase fivefold from current levels. Achieving this transition will require an estimated $256 trillion in cumulative investment between 2026 and 2050, averaging roughly $10.3 trillion annually.