Insights from the IEA, Bloomberg and Science
The news
Investments in clean energy sources will double compared to fossil fuels by 2024, according to the International Energy Agency.
Globally, this will exceed $3 trillion this year, with more than $2 trillion going to clean energy, according to the IEA. More than two-thirds of these green investments will be made by China, the US and Europe, while emerging markets account for only 15% of the total.
SIGNALS
More must be done to achieve climate targets
While the investment in clean energy is a positive step, the IEA warned that more is needed to achieve the goal of limiting global warming to 1.5°C. The focus should be on developing economies, which currently lack “affordable, sustainable and secure energy,” IEA chief Faith Birol said. High financing costs – double those of advanced economies and China – have been a major barrier, but support from development finance institutions could help lower them and ultimately attract more private investment. Limited grid capacity and energy storage were also hurdles, pushing renewable energy targets “downward,” the director of a Greek think tank said.
Governments called for an end to licensing fossil fuel projects
New investments in oil, gas and coal projects were not necessary because those currently planned or underway will provide enough energy to meet fossil fuel demand by 2050, a recent study found. The authors of the study, published in the journal Science, argued that governments should stop licensing new fossil fuel projects. UN Secretary-General Antonio Guterres also called for more action on climate change, urging countries to ban advertising from fossil fuel companies and saying G7 and G20 leaders must outline “ambitious climate plans.”
Collaboration between Big Oil and climate activists is crucial
Big oil companies and climate activists must work together, Bloomberg’s editorial staff wrote in the wake of a recent spat between Exxon Mobil and activists who tried to push the company to take more serious action on climate change. Demonizing the fossil fuel industry is counterproductive, Bloomberg argued, especially because it won’t go away. Companies like Exxon must also take more meaningful action and set clear, concrete climate goals and timelines. “Winning the fight against climate change requires greater confidence in building bridges on both sides,” Bloomberg wrote.
