IEA says $4 trillion investment in clean energy required to meet Paris Accord commitments

The International Energy Agency (IEA) said in its World Energy Outlook 2021 report that nearly US$4 trillion investment into clean energy is required to meet the Paris Agreement commitment to limit the global temperature increase under 1.5 degrees Celsius. The report states, “Getting the world on track for 1.5 °C requires a surge in annual investment in clean energy projects and infrastructure to nearly USD 4 trillion by 2030.”

Additionally, IEA mentioned some developing economies that are presently financing such projects including India’s expansion of solar panels. The Intergovernmental organisation also considered the “persistent challenges, many of which have been exacerbated by the pandemic.” 

IEA published its report on 13 October ahead of the UN Climate Change Conference (COP26) which is set to take place from 31 October to 12 November. The United Nations climate conference was cancelled last year due to the COVID pandemic. As per ANI, the conference will now seek to ramp up the implementation of the groundbreaking Paris Agreement which aims to bring annual global temperature increase to less than 1.5 degrees Celsius. 

In terms of renewable energy, the IEA has said that the investment needs to be tripled by the end of the decade if the global community is willing to tackle the climate crisis and keep volatile energy markets under check. The report stated, “The world is not investing enough to meet its future energy needs ... transition‐related spending is gradually picking up, but remains far short of what is required to meet rising demand for energy services in a sustainable way.”

"Clear signals and direction from policy makers are essential. If the road ahead is paved only with good intentions, then it will be a bumpy ride indeed," said the Paris-based watchdog in its World Energy Outlook. 

‘Stubborn incumbency of fossil fuels’

In the official release, IEA Executive Director Fatih Birol said, “The world’s hugely encouraging clean energy momentum is running up against the stubborn incumbency of fossil fuels in our energy systems...Governments need to resolve this at COP26 by giving a clear and unmistakeable signal that they are committed to rapidly scaling up the clean and resilient technologies of the future. The social and economic benefits of accelerating clean energy transitions are huge, and the costs of inaction are immense.”

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