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Only a small chunk of governments’ restoration spending in response to the Covid-19 pandemic has been allotted to wash power measures, based on the International Energy Agency, with the Paris-based group forecasting that carbon dioxide emissions will hit record levels in 2023.
Published on Tuesday, the IEA’s evaluation notes that, as of the second quarter of this yr, the world’s governments had put aside roughly $380 billion for “energy-related sustainable recovery measures.” This represents roughly 2% of restoration spending, it stated.
In a press release issued alongside its evaluation, the IEA laid out a stark image of simply how a lot work wanted to be completed in order for local weather associated targets to be met.
“The sums of money, both public and private, being mobilised worldwide by recovery plans fall well short of what is needed to reach international climate goals,” it stated.
These shortfalls had been “particularly pronounced in emerging and developing economies, many of which face particular financing challenges,” it added.
Looking forward, the Paris-based group estimated that, underneath present spending plans, the planet’s carbon dioxide emissions can be on target to hit record levels in 2023 and proceed to develop in the following years. There was, its evaluation claimed, “no clear peak in sight.”
Commenting on the findings, Fatih Birol, the IEA’s government director, stated: “Since the Covid-19 crisis erupted, many governments may have talked about the importance of building back better for a cleaner future, but many of them are yet to put their money where their mouth is.”
“Despite increased climate ambitions, the amount of economic recovery funds being spent on clean energy is just a small sliver of the total,” he added.
The IEA’s evaluation and projections are based mostly on its Sustainable Recovery Tracker, which was launched on Tuesday and “monitors government spending allocated to sustainable recoveries.”
The tracker takes this info after which makes use of it to estimate “how much this spending boosts overall clean energy investment and to what degree this affects the trajectory of global CO2 emissions.”
For his half, Birol stated governments wanted to “increase spending and policy action rapidly to meet the commitments they made in Paris in 2015 — including the vital provision of financing by advanced economies to the developing world.
“But they need to then go even additional,” he added, “by main clear power funding and deployment to a lot larger heights past the restoration interval in order to shift the world onto a pathway to net-zero emissions by 2050, which is slender however nonetheless achievable — if we act now.”
Birol’s reference to the Paris Agreement is notable but unsurprising. The shadow of the accord, which aims to “restrict world warming to nicely beneath 2, ideally to 1.5 levels Celsius, in comparison with pre-industrial levels,” looms large over discussions about net-zero goals.
Cutting human-made carbon dioxide emissions to net-zero by 2050 is seen as crucial when it comes to meeting the 1.5 degrees Celsius target.
The new findings from the IEA come after it said the planet’s demand for electricity was set for a strong rebound this year and next after dropping by approximately 1% in 2020.
Released last week, its Electricity Market Report forecasts that global electricity demand will jump by nearly 5% in 2021 and 4% in 2022, as economies around the world look to recover from the effects of the pandemic.
The report notes that although electricity generation from renewables “continues to develop strongly” it can’t keep up with increasing demand.
Renewables were, the intergovernmental organization noted, “anticipated to have the ability to serve solely round half of the projected progress in world demand in 2021 and 2022.”
At the other end of the spectrum, electricity generation based on fossil fuels was “set to cowl 45% of further demand in 2021 and 40% in 2022.”
Indeed, the reality on the ground shows just how big a challenge achieving climate-related goals will be in the years ahead.
Energy companies are still discovering new oil fields, for example, while in countries such as the U.S., fossil fuels continue to play a significant role in electricity production.
At the global level, the IEA’s research published last week expects coal-fired electricity generation to rise “by virtually 5% in 2021 and an additional 3% in 2022, after having declined by 4.6% in 2020.”
“As a outcome, coal-fired electrical energy technology is about to exceed pre-pandemic levels in 2021 and attain an all-time excessive in 2022,” it provides.