Low-and middle-income countries could see their GDP grow by around 10% within 25 years if they transition to renewables quickly enough to double energy-sector productivity, a new report found.
The Oxford University study found that renewable energy productivity gains are especially consequential in developing countries: Already, between 2017 and 2022, renewable investments in the 100 largest developing countries (excluding China) contributed a combined $1.2 trillion to GDP growth — equivalent to 2-5% of GDP for most of these nations.
This for a few reasons: First, renewables generate more electricity per dollar invested than fossil fuels, and, perhaps more importantly, they’re cheaper to operate. Decentralized renewables like solar mini-grids or rooftop panels are also better at reaching more rural areas where grid connections can be pricey and faulty. And green energy spending multiplies through local supply chains and wages far more effectively than fossil fuel investments.
— Natasha Bracken