Fossil fuel dominance in electricity to end by 2030, renewables to take lead: RBI

The Reserve Bank of India (RBI) projects that fossil fuels’ dominance in electricity generation will end by the end of this decade, with renewable energy expected to account for over 50% of global electricity generation. In its latest report, the central bank highlights an accelerated shift toward clean energy, driven by unprecedented capital investment and the rapid deployment of clean technologies.

The RBI report emphasizes that cleaner power generation could enable substantial emissions cuts, buying time for sectors like steelmaking and aviation—where cost-effective, low-carbon alternatives are still in development—to transition. The bank underscores the importance of increasing investment in low-carbon energy, advocating for a ratio of three dollars in renewable energy investment for every dollar spent on fossil fuels over the coming years.

The report estimates that the total cost of achieving a fully decarbonized global energy system by 2050 will reach around USD 215 trillion. Despite this financial challenge, the RBI expresses optimism about the ongoing shift in the financial sector towards greener investments. It stresses that balancing public policy and market-based competition is crucial for this transition, while also noting significant improvements in financial inclusion as the world moves toward a more sustainable energy future.