The plummeting cost of renewable energy means even if Donald Trump pulls the US out of the Paris climate change accord, America will still meet its commitments in the agreement, a new report has said.
Analysts at investment company Morgan Stanley say prices for clean energy will soon sink to lower than more polluting sources.
With the exception of a few countries in Southeast Asia, renewable energy will be the cheapest form of power in almost every country by 2020, the report said.
“We project that by 2020, renewables will be the cheapest form of new-power generation across the globe,” the company wrote.
“By our forecasts, in most cases favourable renewables economics rather than government policy will be the primary driver of changes to utilities’ carbon emissions levels.
“For example, notwithstanding President Trump’s stated intention to withdraw the US from the Paris climate accord, we expect the US to exceed the Paris commitment of a 26-28 per cent reduction in its 2005-level carbon emissions by 2020.”
The price of solar panels fell 50 per cent between 2016 and 2017, the report’s authors said. They added that wind turbines, too, had become significantly more efficient, as scientists have developed longer wind blades.
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Mr Trump has steered the US towards becoming one of only three nations in the world not to be part of the Paris accord, which is designed to slow the pace of global warming.
The US President argues the agreement puts American industries at risk and is too soft on major polluters including China and India.