IEA calls for faster clean energy transition to lower costs and increase equity, ET EnergyWorld

New Delhi: Accelerating the deployment of clean energy technologies could significantly increase energy affordability and ease broader pressures on the cost of living, according to a special report released by the International Energy Agency (IEA).

The report, titled “Strategies for an Affordable and Just Clean Energy Transition,” finds that aligning global efforts to achieve net zero emissions by 2050 would not only require increased investment, but would also reduce the operating costs of the global energy system by more than half over the next decade compared to current policy.

IEA Executive Director Fatih Birol stressed the urgency and economic benefits of a rapid transition to clean energy. “The data clearly shows that the faster the transition to clean energy, the more profitable it will be for governments, businesses and households,” Birol said. “If policymakers and industry leaders postpone action and spending today, we will all pay more tomorrow.”

The report highlights the cost competitiveness of renewable energy sources such as solar PV and wind compared to traditional fuels such as coal, natural gas and oil. It also highlights that significant upfront investment is required, particularly in developing and emerging economies where clean energy investments are often hampered by real or perceived risks.

Despite the economic benefits, the report notes that global energy subsidies largely favor fossil fuels, with governments around the world spending around $620 billion on fossil fuel subsidies in 2023 compared to just $70 billion on investment support in clean energy aimed at consumers.

The IEA report also details the potential of renewable energy to reduce costs for consumers and increase the predictability of energy prices. It argues that as electric vehicles and other electric technologies play an increasingly important role in the energy mix, electricity will become the primary source of energy for consumers, overtaking oil by 2035.

The report concluded by calling for more support and incentives, particularly targeting poorer households, to improve the use of clean energy technologies and meet international energy and climate goals. It suggests a range of measures to increase the availability of clean technologies, including energy efficiency programs for low-income households and greater support for public transport and used electric vehicle markets.

Posted on May 30, 2024 at 5:11 pm EST

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