According to a report, with the investment, the impact of cheap gas and coal will be offset by drops of 41% and 60%, respectively.
The currently low coal and gas prices will not stop record investment of nearly $7.8 trillion in the world renewable energy sector over the coming years as the cost of generating clean energy drops, as per the report.
Bloomberg New Energy Outlook 2016 said that, with renewables set to attract $7.8 trillion by 2040, the impact of cheap gas and coal will be offset by drops of 41% and 60% respectively.
Jon Moore, CEO of Bloomberg New Energy Finance, explained in a statement that though compared to a year ago, coal and gas prices are projected to go “significantly lower”, the report “strikingly, still shows rapid transition towards clean power”.
Further, the report says that the shift to a low-carbon energy sector will not happen quickly enough to keep global warming below two degrees Celsius.
The Paris Agreement last December calls for recording the earth’s average surface temperature at 2 degrees Celsius.
The report further says additional investment of $5.3 trillion in zero-carbon power, over the projected $7.8 trillion would be needed by 2040 to achieve even the two-degree target.