a new report from Bloomberg New Energy Finance suggests.

The new report shows that the price of solar

is dropping rapidly,

much faster than originally anticipated.

The lead author, Seb Henbest, said,

"Costs of new energy technologies are falling

"in a way that is more a matter of when than if."

If their report is correct, then we could see a decline

in global CO2 levels as early as 2026, which is much sooner

than the International Energy Agency forecast.

China and India are the biggest markets

for these new solar farms and account for $4 trillion

of investment, which is about 39% of the overall industry.

Now, these two countries are still spinning up

coal plants really fast, but I think once the price of solar

gets below where it is for the other types of energy,

we're gonna see a big shift really quickly.

In fact, China aims to spend at least 360 billion with a B

on renewable energy by 2020 to fight climate change.

This is of course to help them deal

with the severe pollution in their cities.

Now, China is also incentivizing their consumers,

their citizens, to buy electric vehicles,

and in fact last year they had

over 350,000 electric vehicles sold,

which is far and away the most

out of any country in the world.

In one way, you could say that they're the world leaders

in shifting us into more renewable forms of energy

and forms of transportation such as electric vehicles.

In the US, besides Donald Trump saying,

"We're gonna bring back the coal industry,

"save the coal industry,"

we're gonna see prices for solar continue to drop.

The report predicts that in the US,

solar costs will drop by 67% in 2040 and 63% in Canada.

That's huge but still doesn't hold a candle

to the 85% price drop predicted in Japan.

In fact, they're looking at a 70% price drop by 2022.

That's only five years from now.

Now, I have to pause here for a second and talk

a little bit about why I focus on the price so much.

You see, in the US, we've politicized the argument

over climate change, whereas most of the rest of the world

really doesn't see it as an argument anymore,

as more a fact and something that we need to act upon.

That's why literally every country in the world

signed onto the Paris Accord.

So, when you have something that is objectively

cheaper and better in every way,

no one is gonna stop this from happening.

No one's gonna stand in the way and say,

"Let's pay more for the same thing

"that we could get cheaper and better and easier over here."

It just doesn't work that way.

In fact, the reason oil and things like plastic

have been with us for so many centuries now

is because of how cheap and efficient they are.

If we found a better way to do this earlier,

then we would've already made the switch, but we haven't,

and until we started to realize the impact

that this industry is having on our environment,

we really didn't open our eyes to even looking

because we didn't realize why we would want that.

Don't think for a second, though,

that this will spell doom and gloom

for big oil or Opec or any of those folks.

Companies like BP are making their first investment

into renewables in half a decade.

Even Opec's top producer, Saudi Arabia,

a country synonymous with big oil,

is planning to develop 30 solar

and wind projects over the next 10 years.

This is part of the kingdom's $50 billion program

to boost power generation and reduce oil consumption.

Their goal is to produce 10% of their power

from renewables by 2023.

That's only six years from now.

In the EU, things are headed this way, also

and the report from Bloomberg New Energy Finance projects

that by 2040, the desire or demand for oil

will drop by about 87% due to the increased cost

put in place by the laws that they've enacted

to help fight climate change.

So all together, we're looking at zero emission tech

like Teslas, other electric vehicles, and home batteries

skyrocketing as the source of energy for those products

becomes more renewable, as well,

and all of this adds up to a cleaner, brighter future

for us and for our children and our children's children,

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and thanks for watching this episode

and I'll see you back here next time.