- Clean energy investment needs to triple by 2030
- Coal, oil rebound fuel historic CO2 rise after pandemic
- Renewable energy will help reach net zero, fight instability
- The COP26 convention needs to send an “infallible signal”
LONDON, Oct 13 (Businesshala) – Investment in renewable energy needs to triple by the end of the decade if the world hopes to effectively fight climate change and keep volatile energy markets under control, the International Energy Agency said. (IEA) said on Wednesday.
The IEA said, “The world is not investing enough to meet its future energy needs … Transition-related spending is increasing slowly, but in a sustainable manner to meet the growing demand for energy services.” Much less than what is needed.”
It added, “Clear signals and direction from policy makers are essential. If the road ahead is built with only good intentions, it will be a really rough ride.”
The Paris-based watchdog released its annual World Energy Outlook earlier this year, now less than a month away, to guide the UN COP26 climate change conference.
It called Glasgow, Scotland, “the first test of the readiness of countries to submit to new and more ambitious commitments under the 2015 Paris Agreement” and an opportunity to provide “an ‘unmistakable signal’ that will accelerate the transition to clean energy around the world.” accelerates.”
In recent weeks, electricity prices hit record lows as oil and natural gas prices hit multi-year highs and widespread energy shortages engulfed Asia, Europe and the United States. Demand for fossil fuels is also recovering as governments ease restrictions to stem the spread of COVID-19.
The IEA warned that renewables such as solar, wind and hydropower, along with bioenergy, need to make up a large part in the rebound in energy investment after the pandemic.
Renewables will account for more than two-thirds of investment in new power capacity this year, the IEA noted, yet a major gain in coal and oil use is the second-largest annual increase in CO2 emissions due to climate change. reason is made.
The IEA said a faster energy transition would better shield consumers in the future, as the commodity price shock led to 30% fewer homes in its most ambitious Net Zero Emissions in the 2050 (NZE) scenario versus its more conservative Stated Policy scenario. will increase the cost. (Step).
status quo vs net zero
Still, the leap needed to fulfill pledges in the 2015 Paris Agreement to keep temperature rise as low as 1.5 °C above pre-industrial times remains enormous.
Fossil fuels coal, natural gas and oil made up about 80% of the world energy supply in 2020, and renewables accounted for only 12%.
To keep that increase closer to 1.5 degrees, the IEA’s NZE prediction envisions reducing those fossil fuels to a quarter of the mid-century supply mix and reducing renewables to just over two-thirds.
If the world stays on its current track outlined by the STEPS scenario, temperatures will rise by 2.6 °C by 2100.
The IEA forecasts oil demand to peak for the first time in all its scenarios in the mid-2030s with a very gradual decline in STEPS forecasts, but NZE forecasts a plateau within a decade and up to 2050. There has been a further decline by about three-fourths. .
Doubling down on the agency’s harshest warning on the future of fossil fuels made in its May report, the IEA said its NZE picture envisions an increase in low-demand and low-emissions fuels, which could see new oil and gas growth beyond 2021. making areas redundant.
However, it said its two most conservative scenarios would require new oil fields and offered suggestions to reduce their climate impact, such as reducing the methane glow.
“Each data point showing the speed of change in energy could be countered by another showing the persistence of the status quo,” the IEA warned.
“Today’s energy system is not capable of meeting these challenges; a low-emissions revolution has long been expected.”