International Energy Agency says the Ukraine invasion and the fossil fuels crisis that followed have boosted state spending on clean energy. This is supposed to boost the transition to renewables, says IEA.
But, also it will cause a peak in global carbon emissions from energy in 2025. That’s a result of massively increased government spending on clean fuels. Spending on clean fuels is just a response to Russia’s invasion of Ukraine and the gas crisis that followed. This is what showed the analysis by the world’s leading energy organization.
Clean energy investments as a response to the energy crisis
In its annual report on global energy, the International Energy Agency (IEA) stated that the government’s expenditure on clean energy in response to the crisis would record a historic turning point in rejecting fossil fuels.
The invasion of Ukraine triggered a global energy crisis, with global gas prices initially rocketing. The crisis has resulted in high inflation, making households all over the world poorer.
Governments have been looking for alternative energy sources. Some analysts have brought into question whether concerns about energy independence will cause people to use fossil fuels for longer periods of time, going to slow the world’s battle to net zero carbon emissions. Some countries, including the United States and the United Kingdom under former Prime Minister Liz Truss, have promised to stimulate fossil fuel extraction in order to reduce prices.
However, the IEA’s executive director Fatih Birol, said that according to his opinion, the energy crisis caused by Russia’s invasion will accelerate the clean energy transition.
Investments in clean energy would result in a peak in demand for polluting fossil fuels
According to the IEA, intended investments in green energy in reaction to the crisis would result in a peak in demand for polluting fossil fuels this decade for the first time. The US Inflation Reduction Act, the EU’s emissions reduction package, and actions by Japan, South Korea, China, and India were cited as significant contributions by the agency.
In any case, China produces the most heat-trapping pollution, followed by the United States. However, the United States has historically contributed more carbon dioxide to the atmosphere than any other country. In comparison to other developed countries, the United States also has high emissions per capita. And Americans buy Chinese-made goods, contributing to China’s carbon footprint.
Investment in low-carbon energy such as solar, wind, and nuclear power will increase to $2 trillion per year by 2030, a more than 50% increase from the current. However, the annual clean energy portfolio would need to reach $4 trillion by 2030 in order to achieve net zero carbon emissions by 2050, illustrating the magnitude of the challenge confronting governments around the world.
Current government policies will rise temperatures by 2.5 degrees
According to the IEA analysis, current government policies still would result in global rising temperatures by 2.5 degrees Celsius, which would have drastic environmental consequences. That would be far above the target of keeping global warming to 1.5 degrees Celsius above pre-industrial levels. The Paris climate agreement’s 1.5C target would avert the worst effects of climate complete collapse.
The study adds to the growing scientific consensus that governments are doing totally inadequate to prevent climate disasters. A separate UN study, published on Wednesday, found that current government pledges to reduce emissions will result in 2.5 degrees Celsius of warming.
According to Birol, the wave of clean energy investment will cost Russia $1 trillion in lost fossil fuel profits by 2030 compared to before the invasion. Russia, once the world’s largest exporter of fossil fuels, will play a “much-reduced role in international energy affairs” as the world’s dependence on burning methane gas for power declines, he added.
Birol: The golden age of gas is coming to an end
According to Birol, the golden age of gas is coming to an end.
Birol stated that the crisis had not altered the IEA’s evaluation, which was first published the year before, that all new fossil fuel projects should be halted immediately in order for the world to obtain net zero emissions by 2050. New oil and gas extraction projects, he says, “will jeopardize our climate goals.”
He also rejected as unfounded the criticism from some climate change deniers that spending on clean energy is responsible for higher energy prices. He said that this is a try to conceal who is responsible for the energy crisis, and that is Russia. The IEA discovered that higher proportions of renewable energy were linked to lower electricity prices.
Birol said that there is no government leader who complained about having too much clean energy. On contrary, Birol said, they complain about not having enough clean energy.