5 Reasons to be Optimistic about Clean Energy in 2021

  • 1st Feb'21
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Clean energy is the form of energy that doesn’t create pollution when used. It is utilized from renewable, zero-emission, and energy sources that focus on clean air.

With the on-going pandemic leading to lockdown worldwide, there is an immense decrease in global emissions. And people are educating themselves and shifting to clean energy which gives hope for optimism in 2021.

 

Let’s learn 5 reasons to be optimistic about clean energy in 2021

 

1. Use of Renewable Energy Sources to Boom Up 

Solar energy has played a major role in spreading awareness about clean energy worldwide. The use of solar energy has been increasing steadily and parallel with its awareness.

According to IEA Renewables 2020- Analysis and forecast to 2025 Report, “Renewables will achieve record expansion in 2021, with almost 218 GW becoming operational – a 10% increase from 2020. The rebound is driven by two factors: first, the commissioning of delayed projects in markets where construction and supply chains were disrupted. Immediate government measures in key markets (the United States, India, and several countries in Europe) have enabled developers to complete projects several months after policy or auction deadlines, shifting the forecast for some capacity from 2020 to 2021. Second, growth has been continuous in some markets where the pre-pandemic project pipeline was robust, as a result of economic attractiveness and uninterrupted policy support.

India is the largest contributor to the renewables rebound in 2021, with the country’s annual additions doubling from 2020.”

It is expected that this sector will regain its shape for better post-pandemic. The increase in demand follows the low cost of operation which is an added benefit.

 

 

2. Relaxation from Central Banks

The main obstacle for any clean energy project is securing investment, especially the initial one since the fuels required for them are generally free. Central banks are easing monetary policies in response to the pandemic which is expected to benefit the wind, solar and electric bike industry due to low-interest rates for extended periods in some regions. 

3. Increasing Support from Government

All economies, whether developing or developed are taking steps towards increasing the use of clean energy sources. For instance, 

- America has passed the Moving Forward Act which aims at building American infrastructure by zero carbon emissions. 

- European Union has announced its plan to bring the region’s net emissions to zero by 2050.

- In April 2020, the US’s CESA launched an initiative to help states that have adopted or are considering adopting 100% clean energy goals.

The majority of the clean energy investments are made now by developing countries as they have planned to address the grave problem of air pollution along with climate change.

 

 

4. Companies are taking Initiatives

Now that customers are expecting more from their brands, and social marketing has become a trend as people are educating themselves about climate change. Companies are taking initiatives towards a sustainable environment and clean energy. Initiatives announced by major brands lead to mass awareness which is a high optimism point because more awareness means more hands towards the cause. 

Few of such initiatives taken by companies are as follows:

  • Major Oil companies are working towards turning themselves into lower-carbon energy corporations. 
  • Some of the world’s giant tech companies are also upping their game, investing in renewables and areas like energy storage and fuel cells.

5. Citizens are demanding for Clean Energy Solutions

Greta Thunberg, an environmental activist, has made a worldwide impact and awareness regarding climate change by challenging leaders internationally to take immediate action against climate change. This had steered curiosity among youth leading to education about the environment and an increase in demand for use of clean energy sources.

To give you an idea, according to a Yale Program on Climate Change Communication’s consumer poll, “Seven in 10 (70%) voters say federal stimulus funding should prioritize the clean energy industry over the fossil fuel industry.”

 

Although there are reasons to be optimistic about clean energy, there is a definite need for the existing challenges to be overcome which includes tackling emissions from existing infrastructure and encouraging more companies. Consumer education and their demand for clean energy solutions by companies and economies are now required more than ever to accelerate the transition for a better environment, a better future.

 

Let us know your views in the comment section below.

 

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Sources/References:

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About the author:

Ayushi Vanzara, OpenGrowth Content Team

Ayushi is currently pursuing Chartered Accountancy. No secrets there that she loves to read!  She believes words have the power of healing and is a medium that can convey like no other. She hopes to connect with people through her empathy, thoughtfulness, and by adding value to their lives.


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