Business News : The dominance of fossil fuels in power generation in India will end by the end of the decade. The Reserve Bank of India has claimed this in its latest report. The report says that the share of renewable energy in power generation globally is expected to cross 50 percent. According to the report, the energy transition has accelerated in recent years. Apart from this, the pace of deployment of clean technology and capital investment has reached record levels.

"The era of fossil fuel dominance is coming to an end, and the share of renewable energy in electricity generation globally is expected to surpass 50 per cent by the end of this decade," the RBI said. According to the report, the rise in clean energy generation will help sectors such as steelmaking and aviation, where low-carbon options are still in their early stages. The central bank also highlighted the importance of increasing investment in low-carbon energy.
 
"Clean power generation can help drive the aggressive carbon emission cuts that are urgently needed," the RBI said, adding that this would also provide more time to tackle sectors such as steelmaking and aviation that are currently facing challenges in reducing carbon emissions.
 
The report highlights that for every dollar invested in fossil fuels, an average of three dollars needs to be allocated to renewable energy in the coming years, much higher than the current ratio, where both sectors are getting equal investment. Tripling renewable energy capacity by 2030 is considered essential to meet net-zero emissions targets by mid-century.
 
RBI said, "On the energy supply side, for every US$ spent on fossil fuels, an average of US$3 should be invested in low-carbon energy over the rest of the decade." In the report, RBI has highlighted that the estimated cost of a completely carbon-free global energy system by 2050 will be US$215 trillion.
 
However, the report remains optimistic about ongoing efforts to green the financial sector. It emphasised that striking the right balance between public policy interventions and market-based competition will be key to achieving this ambitious energy transition. The central bank also said that financial inclusion has improved significantly as the world moves towards a more sustainable energy future.