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International Energy Agency: The world needs to triple investment in renewable energy | Business and Economic News

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The expenditure for the transition to renewable energy is “still far below” the funds needed to sustainably meet future demand: IEA.

The International Energy Agency (IEA) stated that if the world wants to effectively respond to climate change and control the turbulent energy market, investment in renewable energy needs to triple by the end of this decade.

The IEA stated in its annual report: “The world’s investment is insufficient to meet its future energy needs… The expenditure related to the transition is gradually increasing, but it is still far below what is needed to meet the growing demand for energy services in a sustainable manner. Quantity.” The World Energy Outlook released on Wednesday.

“Clear signals and directions from decision makers are crucial. If the road ahead is paved with good intentions, it will indeed be a bumpy journey,” it added.

The Paris-based regulator released its annual World Energy Outlook at the beginning of this year to guide the UN COP26 climate change conference starting later this month.

It referred to the forthcoming meeting in Glasgow, Scotland as “the first test of whether countries are ready to submit new and more ambitious commitments under the 2015 Paris Agreement” and “providing an opportunity to’clear signals’ to accelerate the global The transition to clean energy”.

Need for a faster energy transition

In recent weeks, as oil and natural gas prices hit multi-year highs and widespread energy shortages have swept Asia, Europe and the United States, electricity prices have soared to record levels. As the government relaxes restrictions to contain the spread of COVID-19, demand for fossil fuels is also recovering.

The International Energy Agency warned that after the pandemic, renewable energy such as solar, wind, and hydropower, as well as bioenergy, will need to take a larger share of the rebound in energy investment.

The International Energy Agency pointed out that this year renewable energy will account for more than two-thirds of the investment in new installed power generation capacity, but the substantial increase in coal and oil usage has led to the second largest annual increase in carbon dioxide emissions caused by climate change.

The IEA stated that a faster energy transition will better protect consumers in the future, because in its most ambitious 2050 Net Zero Emissions (NZE) scenario, commodity price shocks will reduce household costs by 30%. Compared with its more conservative established policy scenario (steps).

Status Quo and Net Zero

Nevertheless, to fulfill the 2015 Paris Agreement’s commitment to limit temperature rise to as close as possible to 1.5 degrees Celsius (2.7 degrees Fahrenheit) from the pre-industrial period, a big leap is still needed.

Fossil fuels-coal, natural gas, and oil-will account for nearly 80% of the world’s energy supply in 2020, and renewable energy will account for only 12%.

In order to keep warming around 1.5C, the IEA’s NSE forecast envisages that these fossil fuels will be reduced to less than a quarter of the supply mix by the middle of this century, while renewable energy will soar to more than two-thirds.

If the world remains on the current orbit outlined in the STEPS scenario, the temperature will rise by 2.6 degrees Celsius (4.7 degrees Fahrenheit) by 2100.

The IEA forecasts for the first time that oil demand in all scenarios will peak. In STEPS forecasts, there will be a very slow decline in the mid-2030s, but in NZE forecasts, it will stabilize within 10 years, and will further decline by nearly four times by 2050. Three points.

The International Energy Agency issued the most severe warning to date on the future of fossil fuels in a report in May, stating that its NZE’s prospects are declining demand and increasing low-emission fuels, making new oil and gas fields unnecessary after 2021.

However, it does state the need for new oil fields in its two most conservative scenarios, and provides techniques to mitigate climate impacts, such as reducing methane combustion.

The International Energy Agency warned: “Every data point that shows the rate of energy change can be offset by another data point that shows the stubborn status quo.”

“Today’s energy system cannot cope with these challenges; a low-emission revolution is long overdue.”



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