15 May IEA: ‘the world does not invest enough in clean energy’
Countries do not invest enough money in renewable energy. At the same time, investments are being made in fossil energy. According to the International Energy Agency (IEA), investments in renewable energy must more than double.
Worldwide, more than $ 1.8 trillion was invested in energy in 2018. These expenditures are roughly the same as those of 2017. The International Energy Agency recently calculated that on balance no more sustainable energy was added. In the past year, more was invested in coal, gas and in oil. At the same time, investments in renewable energy declined.
“Energy investments now face huge uncertainties, shifts in markets, policies and technologies,” said Fatih Birol, director of the energy agency. “The bottom line is that the world is not investing enough to keep up with today’s consumption patterns and is not investing enough in clean energy technologies to change course. Whichever way you look: we accumulate risks for the future, ”says Birol.
According to the agency, investments in energy supply must not only increase, but countries must also rearrange their investments. The investments that are currently taking place are not in line with the course that the world is currently sailing, says the IEA. The permission for new oil and gas projects in particular conflicts with sustainable ambitions.
In the report, the agency also states that countries should invest more in energy systems and energy research. “The investment trend shows that more stringent measures must be taken to make the energy system more sustainable. Leadership of governments is needed to reduce the risk for investors, “says Birol.
Sustainable Development Scenario
The warning from the IEA strongly resembles a signal issued by the organization last year. At that time, the agency was already concerned about investments in sustainable energy. The organization itself drew up a Sustainable Development Scenario earlier, in which all set goals regarding clean air and climate change are achieved. To achieve this scenario, 65 percent of all investments in energy must be spent on renewable energy. At present, that share is still 35 percent. According to the IEA, this scaling up requires policy focus, new financing methods and faster technologies.