Tesla has drawn up a plan for the whole world to abandon oil and gas - it will cost $10 trillion
Musk believes it will cost only 0.5% of the world economy
Elon Musk's American company Tesla has presented a major report on how the world can be transformed by abandoning fossil fuels and how much it will cost.
According to the company's estimates, abandoning traditional fuels in favor of green and renewable energy sources (RES) will already cost much less than continuing to use oil and gas in energy generation.
Source. This was reported by Bloomberg.
Tesla analysts claim that their plan for a global energy transition to clean energy will cost only $10 trillion, while the current basic plan of world countries to reduce dependence on oil, gas and coal will cost $4 trillion more.
The full energy transition to clean electricity generation is expected to be completed in 20 years, which is much faster than the world's largest economies currently intend to do (EU – by 2050, China – by 2060).
Elon Musk's plan includes the creation of additional energy generation using renewable energy sources with a capacity of 30 terawatt/hour, as well as storage of this energy in the form of powerful batteries with a total capacity of 240 terawatt/hour.
The businessman believes that $10 trillion is not so big if we understand that it is only a part of the new $100 trillion global economy.
"In 20 years, it will be 0.5% of the global economy. So it's a small number," Musk himself said last month when announcing his plan.
In addition to tech companies that will develop and manufacture solar panels, powerful batteries, wind turbines, and other systems, mining companies that develop deposits of aluminum, copper, nickel, lithium, and other metals needed in the production of green technologies will benefit.
Tesla's report says that total investment in the extraction and subsequent processing of minerals will require more than $1 trillion – $502 billion and $662 billion, respectively.
"An electrified and sustainable future is technically feasible and requires less investment and extraction of materials than maintaining today's unsustainable energy economy," Tesla's report says.
Musk notes that to increase the production of the necessary metals, only 3.3 gigatons more land needs to be dug up each year, which is significantly lower than the 15.5 gigatons dug up annually for fossil fuel production.
Moreover, there is currently no risk of a critical reduction in the amount of metals needed for similar production volumes, and investment in the industry is driving the search for new deposits. By 2040, progress should lead to the replacement of some expensive metals and materials with cheaper and more common ones, the report says.
Background. As a reminder, in March, Tesla cut prices for its most expensive electric cars for the second time since the beginning of the year.
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