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‘Decisive’ Decade in Climate Change Fight Needs Lending Surge

  • Annual call on private funding rising to $3.2 trillion: Irena
  • UN climate adviser says market favors solar, wind as oil peaks
A pedestrian cools off during a heatwave in New York, U.S., on June 29.
A pedestrian cools off during a heatwave in New York, U.S., on June 29.Photographer: Nina Westervelt/Bloomberg

A surge in private lending for renewable energy projects this decade is key to meeting global targets to limit the rise of temperatures worldwide, according to the International Renewable Energy Agency.

Governments and companies are working to cut greenhouse-gas emissions and limit the increase in global temperatures to 1.5 degrees celsius. To reach that, Irena, the United Nations climate change and renewable energy adviser based in Abu Dhabi, estimates that private lenders and capital markets will have to boost funding for renewable energy projects nearly fourfold this decade to about $3.2 trillion a year.