IEA Calls for End to Fossil Fuel Investment Ahead of COP26

(Credit: International Energy Agency)

by | May 18, 2021

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In the run-up to COP26, the UN climate change conference to be held in Glasgow this November, the International Energy Agency (IEA) issued a strong warning on the need to drastically scale back fossil fuels in its May 2021 Net Zero by 2050 Report and roadmap for the global energy sector. The Agency calls for no new fossil-fuel cars to be sold beyond 2035, and for global investment in energy to more than double from $2 trillion a year to $5 trillion. The result would not be an economic burden, as some have claimed, but a net benefit to the economy.

The report is the world’s first comprehensive study of how to transition to a net-zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth. It sets out a cost-effective and economically productive pathway, resulting in a clean, dynamic and resilient energy economy dominated by renewables like solar and wind instead of fossil fuels. The report also examines key uncertainties, such as the roles of bioenergy, carbon capture, and behavioral changes in reaching net zero.

“Our Roadmap shows the priority actions that are needed today to ensure the opportunity of net-zero emissions by 2050 – narrow but still achievable – is not lost. The scale and speed of the efforts demanded by this critical and formidable goal – our best chance of tackling climate change and limiting global warming to 1.5 °C – make this perhaps the greatest challenge humankind has ever faced,” said Fatih Birol, the IEA Executive Director. “The IEA’s pathway to this brighter future brings a historic surge in clean energy investment that creates millions of new jobs and lifts global economic growth. Moving the world onto that pathway requires strong and credible policy actions from governments, underpinned by much greater international cooperation.” 

In the near term, the report describes a net-zero pathway that requires the immediate and massive deployment of all available clean and efficient energy technologies, combined with a major global push to accelerate innovation. The pathway calls for annual additions of solar PV to reach 630 gigawatts by 2030, and those of wind power to reach 390 gigawatts. Together, this is four times the record level set in 2020. For solar PV, it is equivalent to installing the world’s current largest solar park roughly every day. A major worldwide push to increase energy efficiency is also an essential part of these efforts, resulting in the global rate of energy efficiency improvements averaging 4% a year through 2030 – about three times the average over the last two decades.

Most of the global reductions in CO2 emissions between now and 2030 in the net-zero pathway come from technologies readily available today. But in 2050, almost half the reductions come from technologies that are currently only at the demonstration or prototype phase. This demands that governments quickly increase and reprioritize their spending on research and development – as well as on demonstrating and deploying clean energy technologies – putting them at the core of energy and climate policy. Progress in the areas of advanced batteries, electrolyzers for hydrogen, and direct air capture and storage can be particularly impactful.

Birol also amplified environmental justice considerations. “The clean energy transition is for and about people,” said Dr. Birol. “Our Roadmap shows that the enormous challenge of rapidly transitioning to a net-zero energy system is also a huge opportunity for our economies. The transition must be fair and inclusive, leaving nobody behind. We have to ensure that developing economies receive the financing and technical know-how they need to build out their energy systems to meet the needs of their expanding populations and economies in a sustainable way.”

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