Economy
Tesla estimated the cost of the global transition to clean energy
The global transition to clean energy sources will require investments of $10 trillion for the next 20 years, experts at the Tesla automobile concern calculate. This is stated in the Master Plan Part 3 report, published on the company’s website.
The report reflects the vision of the head of Tesla, Elon Musk, about a world without fossil fuels, which the billionaire first described at an event for investors in March. Back then, Musk assured participants at the event that humanity would “move to a sustainable energy economy” and “it will happen in your lifetime.”
In a clean energy world, as described by the report’s authors, upgraded power grids will be powered by wind and solar, massive battery farms and underground salt caves capable of storing hydrogen will be used for energy storage, and heat pumps will be used to heat and cool homes and businesses.
However, to provide enough renewable energy production and storage to power the global economy would require substantial investment in solar panel plants and metal processing plants, Tesla experts said.
They estimate that more than $1 trillion will be needed just to produce the nickel, lithium, copper and other materials that will be used in batteries and clean energy equipment, of which $502 billion will go to mining and $662 billion to refining. At its peak, the world would excavate 3.3 gigatons of land each year to get the metals needed to switch to clean energy, Tesla calculated.
While $10 trillion is a significant cost, it’s really only a small fraction of the global economy, which Musk estimated at $100 trillion, Bloomberg writes. If you allocate costs for 20 years, then “it will be only 0.5% of the world economy, a small figure,” said the billionaire, speaking to investors.
If humanity continues to use oil, coal and natural gas, it will cost even more, the report said. They estimate that using fossil fuels would require an investment of $14 trillion, and that 15.5 gigatons of land would have to be dug up each year to produce them.
“An electrified and sustainable future is technically feasible and requires less investment and material extraction than maintaining today’s unsustainable energy economy,” Tesla experts said.
Earlier, we reported that the banking crisis brought record profits to downside players.
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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