Findings from IEA, Bloomberg and Science
The news
According to the International Energy Agency, investments in clean energy sources will double those in fossil fuels by 2024.
Global investment will surpass $3 trillion this year, with over $2 trillion going into clean energy, according to the IEA. More than two-thirds of this green investment will come from China, the US and Europe, while emerging markets will account for just 15 percent of the total.
SIGNALS
More needs to be done to achieve climate goals
While investing in clean energy is a positive step, the IEA warned that more is needed to meet the goal of limiting global warming to 1.5°C. The focus should be on developing countries, which currently lack “affordable, sustainable and secure energy,” said IEA chief Faith Birol. High financing costs – twice those in developed countries and China – are a major obstacle, but support from development finance institutions can help lower them and ultimately attract more private investment. Limited grid capacity and energy storage are also obstacles and will contribute to renewable energy targets being “trended downwards,” the director of a Greek think tank said.
Governments should stop issuing licenses for fossil fuel projects
New investments in oil, gas and coal projects are not necessary because those currently planned or underway will provide enough energy to meet fossil fuel demand until 2050, according to a recent study. The authors of the study, published in the journal Science, argued that governments should stop issuing licenses for new fossil fuel projects. UN Secretary-General Antonio Guterres also called for more action on climate change, urging countries to ban advertising for fossil fuel companies. He said G7 and G20 leaders should come up with “ambitious climate plans.”
Cooperation between oil companies and climate activists is crucial
Big oil companies and climate activists must work together, Bloomberg’s editorial board wrote in the wake of a recent dispute between Exxon Mobil and activists who had 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 is not going away. Companies like Exxon must also take more meaningful action and set clear, concrete climate goals and timelines. “To win the fight against climate change, both sides must build bridges in good faith,” Bloomberg wrote.