Clean Energy Spending Up, but Not Enough

June 3, 2021

Recharge News:

Clean energy investment remains far below what’s needed to effectively combat global heating, despite early signs that some of the world’s largest fossil energy players are accelerating their spending on green projects and technologies, warned the International Energy Agency (IEA).

The world will see $750bn of investments in clean energy technologies and efficiency this year – but that needs to triple to give a chance of hitting net-zero emissions by 2050, said the IEA.

The Paris-based body said total global energy investments will rebound from pandemic-induced falls seen in 2020 to see a 10% increase to $1.9 trillion in 2021.

The power sector will with a record $820bn for the sixth year in a row outstrip oil & gas investment, the IEA predicted, with renewables dominating spending on new generation capacity, accounting for 70% of the total.Investment giant BlackRock backs calls for oil supermajor BP to ‘accelerate’ climate plansRead more

There were signs of an accelerating shift by global oil & gas majors towards clean energy investments, the IEA reported, although fossil spending remains their overwhelming focus.

The body reckons capital spending on clean energy could reach 4% across the global oil & gas sector in 2021, up from 1% in 2020 – with some European groups reaching “well above 10%”.

European giants such as BP, TotalEnergies and Shell have led the charge into sectors such as solar and offshore wind, often under pressure from their own shareholders.Stiesdal: Net-zero report shows IEA’s renewables forecasts can finally be taken seriouslyRead more

But while the numbers are huge and the direction of travel for renewables is encouraging, the IEA in its World Energy Investment 2021 report said there is far further to go to keep the planet in line with ambitions for limit global warming to 1.5 degrees C.

“The rebound in energy investment is a welcome sign, and I’m encouraged to see more of it flowing towards renewables,” said Fatih Birol, IEA executive director. “But much greater resources have to be mobilised and directed to clean energy technologies to put the world on track to reach net-zero emissions by 2050. Based on our new Net Zero Roadmap, clean energy investment will need to triple by 2030.”

4 Responses to “Clean Energy Spending Up, but Not Enough”

  1. Sustain blog Says:

    A good article! Thank you 😊

  2. rhymeswithgoalie Says:

    According the the April 30, 2021 episode of The Energy Gang podcast, there’s another problem with banks proclaiming no investments in, say, new coal plants but still providing money to companies that might still be promoting fossil fuel infrastructure.

  3. redskylite Says:

    Plus (globally) we haven’t managed to convince all players to abandon coal yet, we really need to do that, somehow.

    “The new coal capacity of 2277 million tonnes per annum, which includes both mines planned and those under construction, runs contrary to the International Energy Agency’s roadmap to global net zero emissions by 2050, which shows the world would need to reduce capacity by 11 per cent a year over the coming decade to hit Paris Agreement targets.”

    “While the IEA (International Energy Agency) has just called for a giant leap toward net zero emissions, coal producers’ plans to expand capacity 30% by 2030 would be a leap backward,” said Ryan Driskell Tate, Global Energy Monitor research analyst and lead author of the report.

  4. redskylite Says:

    Unrelated but interesting video on the new Ford F150 Lightening –

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: