IEA: extra €7 trillion needed for low-carbon energy

Citation

(2010), "IEA: extra €7 trillion needed for low-carbon energy", International Journal of Climate Change Strategies and Management, Vol. 2 No. 2. https://doi.org/10.1108/ijccsm.2010.41402baf.001

IEA: extra €7 trillion needed for low-carbon energy

Article Type: Feature From: International Journal of Climate Change Strategies and Management, Volume 2, Issue 2

Additional global investments of US$10.5 trillion (€7 trillion) will be needed in low-carbon energy technologies and energy efficiency by 2030 to try and limit the global temperature rise to 2°C, the International Energy Agency (IEA) has stated. In its World Energy Outlook 2009 report, the IEA warns that without this extra investment, current energy trends will trigger an average global temperature rise of 6°, resulting in “massive climatic change”. Improvements in end-use energy efficiency should account for more than half of the necessary emissions savings by 2030, according to the agency. By the same date, low-carbon energy technologies such as renewables, nuclear and carbon capture and storage will need to provide 60 per cent of global electricity production.

Around €3 trillion of the extra €7 trillion investment needed between now and 2030 should be spent on decarbonising the transport sector, the IEA argues. An additional €1.7 trillion should be spent on the buildings sector, €1.1 trillion on new power plants, €750 billion in industry and €250 billion on bio-fuel production, the agency adds. Much of the extra investment needed will be offset by economic and health benefits, the IEA stresses. Global energy bills for transport, buildings and industry will be reduced by up to €5.7 trillion by 2030, for example. The economic crisis has created an opportunity for energy-related emissions reductions by slowing investments that would have “locked-in high-carbon energy technologies”, the IEA believes. Further details can be seen at: www.iea.org/textbase/npsum/weo2009sum.pdf