Investment can promote economic growth by increasing the capital stock and the productive capacity of the economy and, therefore, its aggregate income. Investments in renewables have been exponentially growing over the last years, anticipating an upcoming shift in the energy mix and avoiding the lock-in on emissions-intensive technologies. Policy support, technological development and shifting investor preferences appear to align with a strengthened ambition to deploy new technologies and effectively reduce emissions, while promoting economic activity. Here we examine the effects of additional energy investments to other sectors in the economy under a 1.5 °C cost-efficient global temperature stabilization scenario. We use the aggregate sectors of a Computable General Equilibrium (CGE) model, the JRC-GEM-E3 model to assess the effects of global energy investments throughout the supply chains. The analysis takes a macroeconomic perspective, with a specific focus on the associated supply chain effects in capital and labour over the next decade, including the impacts on both direct and indirect employment.
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