The International Energy Agency (IEA) wants more investment in clean energy so that the net zero emissions target by 2050 can be achieved. It is true that global investments in energy this year would increase by almost 10 percent to 1,9 trillion dollars (1,56 trillion euros) and thus offset most of the corona-related decline. "But spending on clean energy has to rise much faster in order to achieve the climate targets," the IEA emphasized on Wednesday.
The IEA acknowledges that more and more money is being invested in the electricity sector. 2021 is well on the way to being the sixth year in a row in which investments in the electricity sector exceed those in oil and gas supplies, according to the report published on Wednesday. The power plant sector is likely to flow 820 percent more to $ 5 billion this year, which would be an all-time high. Renewable energies would dominate the power generation investments and make up 70 percent of the total investments this year.
Investments must triple by 2030
IEA Executive Director Fatih Birol called the "upswing" in energy investments "a welcome sign", but many more resources would need to be mobilized and channeled into clean energy technologies to get the world on the move to be "net-zero" by 2050. Emissions ”. "Based on our new 'Net Zero Roadmap', investments in clean energies must triple by 2030", emphasized Birol. Coal has not yet disappeared from the scene, even if the permits for coal piles are about 80 percent below the level of five years ago. In 2020 there were even more permits for coal-fired power plants, driven by China and other countries in Asia.
The IEA estimates that around 2021 percent more will be put into upstream investments in the oil and gas industry in 10 as companies recover financially from the shock of 2020. "But their spending remains well below pre-crisis levels," says the report, which highlights the different strategies used by the oil and gas companies. The big players would keep their total oil and gas spending at the same level despite the rebounding prices. Some national firms would invest more and expect a larger market share if demand continued to rise.
Slight upswing in sustainable investments
For example, the decision by Qatar to advance the world's largest liquefied natural gas expansion and to include technologies for CO2 capture is a strong signal that it intends to maintain a leading position in LNG.
Global oil and gas companies are increasingly diversifying their spending: while, according to a previous IEA analysis, only one percent of the industry's investments went into clean energies, this year it should be 4 percent. For some leading European companies, it could even be over 10 percent.
Both economic stimulus packages and the USA could provide further momentum in energy investments, for example if the infrastructure plan proposed by President Joe Biden comes into force, says the energy agency. The influence of economic stimulus packages and new climate policy measures can be seen in the expectation of increasing expenditures in 2021 for renewable energies, power grids, energy efficiency - especially in the building sector in Europe - as well as new hydrogen and CO2 capture technologies.
The financial markets are also giving encouraging signals to invest in clean energies: sustainable debt issuance reached record levels in 2020, and companies in the renewable sector did better on the stock exchanges than companies in the fossil fuel sector. (apa)