The International Energy Agency chief told BBC that if green energy is not invested in enough, “we might well see more and bigger turbulence” in energy markets.
Fatih Birol stated that this was “not good news for global economic growth”.
Inflation concerns have been triggered by record-breaking energy prices in Europe, Asia and the UK in recent weeks.
The IEA annual World Energy Outlook states that clean energy and infrastructure require a $4 trillion per year investment.
This outlay could be used to ensure that the global rise in temperatures is kept below 1.5 degrees Celsius above pre-industrial levels as per Paris’s agreement six years ago.
This warning was issued to coincide with the COP26 Climate Change Summit, which will take place in Glasgow at end of the month. Dr Birol indicated that the world’s leaders should incentivize the investment necessary for the summit.
“If your goal is to promote clean energy and energy efficiency, then you should also encourage solar electric cars. [solutions]You don’t have to continue using fossil fuels. Instead, switch to renewable energy.
It’s easy to state, but the problem is with governments to encourage those investments to close the gap. [in energy supplies]This is what fossil fuels lack.”
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According to the IEA, governments must reduce their carbon emissions more than they have previously announced if they want to achieve Paris goals.
The tax system could provide incentives, such as easier financing and regulation changes.
According to the IEA there is a clear shift towards renewable energy sources like solar and wind, however the current pandemic has hampered efforts to reduce oil and coal use.
This means that the world will see the 2nd largest increase in CO2 emissions this year.
The report recommends that governments provide upfront funding to help households and businesses pay higher costs for new technology investments. It will also be welcome by businesses and households that are currently struggling to pay high energy prices as the economy recovers after the pandemic.
Russia is the largest producer of natural gas in the world. It has been accused for withholding supply to ease price pressures, for political reasons. Dr Birol claimed that Russia can and should have been more helpful. We have found that Russia could easily boost the amount of gas that it sends to Europe by 15 percent, which may indicate that Russia could qualify as a trustworthy partner.
Moscow is making some useful statements. However, the statements are not enough. I’d be happy for some gas to reach Europe.
Vladimir Putin, Russia’s president rejected as “completely nonsense” the notion that he used gas supplies to power his political agenda at a Moscow energy conference. All Europe had to do is ask. We are willing to go the extra mile if they request us to do so. As much as is asked by our partners, we will grow. “There is no refusing, there’s none.”
The EU relies heavily on imports to meet its energy requirements. Russia is the largest supplier of natural gas, oil, and coal. Renewable energy sources are growing at a faster rate than any other type.
Europe may reduce its dependence on Russian oil by increasing its investment in renewable energy sources, such as wind and solar.
According to May Boeve (executive director at 350.org), it is not economically sensible to fail to invest in renewable energies. The cost of paying for climate-related disasters is prohibitive. Cities paying for fires and floods is more expensive.
She said that necessary changes meant “we are talking about a wholesale change in how the economy works”.
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Dr Birol says that the funds to help make energy more sustainable are readily available. Globally, capital is plentiful. There are also no shortages of funds. Clean energy and capital are going to meet in Europe as well as North America.
“The problem is emerging and developing countries. The bulk of global emissions growth originates from Asia, as well as other emerging nations. [economy]Countries around the globe
The IEA says nearly three‐quarters of the emissions that are causing climate change are the responsibility of the energy sector.
Wealthy countries previously pledged $100bn (£720m) a year to help poorer nations by 2020. According to a UN study, the goal was unlikely to be met so wealthy countries will now have to contribute more.
According to the IEA chief, government money can trigger private investments in clean energy. He is also optimistic about the potential for what could happen in Glasgow.
“It is also important that in COP, government leaders from around the globe come together and unite to send a signal to investors saying “you investor, we see that we are united for building a clean energy tomorrow”, but “if you keep investing in the old energy.” [such as fossil fuels]You could well end up losing money.
You can earn handsome returns if you make investments in clean energy. This is what it looks like [the]”I hope investors will hear my political message.”