The world economy, severely hit by the coronavirus pandemic, may be saved by fighting global warming, the chief economist at UK investment research company TS Lombard Charles Dumas said. He has studied the dynamic of price growth for various types of energy. Dumas has found out that solar and wind energy have become much cheaper and more affordable over the past ten years, while the coal and gas prices have hardly changed. If the trend continues, by 2030 renewable energy will be half-price of fossil fuel for consumers, which means that the transition to it will be profitable not only for achieving zero emissions but also for economic reasons.
Dumas believes that the shift to green energy may help the world economy to get back on track quicker. According to the expert, developing countries in Africa have a huge potential in the production of solar energy, which can be shared with European regions. To do this, governments need to invest in expensive research and technologies for long-distance energy transmission.
Paul Steele, the chief economist at the International Institute for Environment and Development, agrees with him. Paul believes that investments in renewable energy will help not only overcome the climate crisis but also the economic one. Additionally, they will create jobs for post-pandemic recovery.
Among other things, Mr. Steele thinks that governments need to come up with a long-term financial plan for making their economies greener and should not expect outstanding results in the short term.
