TSKB Economic Research Focuses on Climate Technologies in the Latest Edition of “Climate Review”

In the 12th issue of Climate Review prepared by TSKB Economic Research, the central theme revolves around climate technologies. The research delves into investment and employment in this area, emphasizing the significance of electrification, agricultural applications, energy transmission networks, hydrogen technology, and carbon capture, utilization, and storage technologies in addressing the climate crisis.

The 12th issue of Climate Review, prepared quarterly by TSKB Economic Research as part of the Green Swan Platform, has been published. Highlighting the pressing need to avert the climate crisis, this edition delves into the potential of climate technologies as a viable solution. It states that advancements in existing climate technologies have the potential to contribute to achieving 60 percent of the necessary emission reductions for reaching climate neutrality by 2050.

Over USD 260 billion invested in climate technologies between 2018 and 2022

The 12th issue of Climate Review underscores the significance of climate technologies in reducing carbon emissions, encompassing diverse areas such as green energy solutions (like wind, solar, hydroelectric, and hydrogen), electric vehicles, drought-resistant seeds, early warning systems, seawalls, LED lighting, high-efficiency heating and cooling systems, and carbon capture and storage technologies. It is highlighted that global investments in the climate technologies market exceeded USD 260 billion between the first quarter of 2018 and the third quarter of 2022. Additionally, it is noted that a significant portion of private sector investments in this sector is concentrated in regions like the United States, the European Union, and China.

The latest edition of Climate Review emphasizes significant insights from a McKinsey study on climate technologies. It underscores the potential impact of annual investments ranging from USD 700 billion to USD 1 trillion by 2025 in areas like enhancing building energy efficiency, advancing electric vehicle battery technology, and transitioning to electric heating and cooling systems. Such investments could potentially lead to the prevention of 5 billion tons of carbon dioxide emissions annually by 2050. The report highlights the potential to annually reduce carbon emissions by 10 billion tons by 2050. Achieving this would require annual investments ranging from USD 400 to USD 600 billion by 2025, focusing on transitioning to green solutions in agricultural practices, which are responsible for approximately 20 percent of global greenhouse gas emissions.

Europe needs 1 million additional solar workers to meet 2030 renewable energy targets

The current issue highlights that the transition towards greener economies, often referred to as the “great transformation,” has significant implications not just for industrial competitiveness but also for the future of labor markets. It emphasizes that this shift in the labor market toward sustainability presents both challenges and opportunities. As part of this transition, some of the newly created jobs may replace existing ones, potentially resulting in job losses, while others may demand re-skilling in specific areas. According to the International Labour Organization (ILO), the sector, mainly in fossil fuel extraction and processing, may experience a loss of 6 million jobs. However, this is expected to be offset by the creation of 18 million new jobs by 2030, compared to the 24 million new jobs anticipated in the green transition for sustainable energy production and energy efficiency. The transition to a low-carbon and greener economy is expected to create a total of 60 million jobs beyond the energy sector by the year 2030. According to the information shared, Europe needs 1 million additional solar workers to meet its 2030 renewable energy targets. The electric vehicle sector also stands out in terms of its employment figures. In this context, it is estimated that Australia will face a shortage of approximately 9 thousand electricians by 2030, the US will require 80 thousand electricians annually by 2031, and Britain will experience a shortfall of 25 thousand workers by 2032. However, the rapidly growing electric vehicle market is marked by intense price competition and decreasing profitability. This has prompted significant cost-cutting measures in China, including a reduction in wages by almost two-thirds compared to 2016.

The latest edition of Climate Review also provides insights into climate and development during the period of July to September. It includes assessments on various topics such as forest fires in Hawaii, floods in Libya and Hong Kong, developments in the electric vehicle market, and updates on climate law.

You can access the full study from the links below:

Turkish: https://www.tskb.com.tr/uploads/file/iklime-dair-temmuz-eylul-2023.pdf 

English: https://www.tskb.com.tr/uploads/file/climate-review-july-september-2023.pdf