IEA "Only 2% of Economic Recovery Measures Invested in Green Energy... Carbon Emissions Will Continue to Rise"

Fatih Birol, IEA Executive Director [Photo by Reuters-Yonhap News]

[Asia Economy Reporter Park Byung-hee] According to the International Energy Agency (IEA), the proportion of funds allocated to the green energy sector among the economic recovery stimulus packages announced by governments worldwide after COVID-19 is only 2%. The IEA pointed out that investments to achieve carbon neutrality by 2050 are far from sufficient, and global greenhouse gas emissions will continue to rise.

On the 20th, major foreign media reported that the IEA released a report analyzing over 800 economic recovery stimulus packages from more than 50 countries worldwide.

The analysis showed that the total amount governments promised to invest for economic recovery after COVID-19 reached $16 trillion. However, only $380 billion of this was allocated to the green energy sector. Most of the $16 trillion recovery funds were concentrated on financial support for households and businesses.

The IEA stated that greenhouse gas emissions are expected to reach a record high again in 2023. This is not a forecast that emissions will peak in 2023 and then decline, but rather that emissions will continue to increase at least until 2023. The IEA said it is difficult to predict when greenhouse gas emissions will reach their peak.

Fatih Birol, Executive Director of the IEA, said, "Even if the $380 billion allocated to the green sector is fully executed on time, it is far from enough to achieve carbon neutrality by 2050," adding, "It is also insufficient to prevent global greenhouse gas emissions from setting new records."

Concerns about insufficient global investment in the green sector have been consistently raised. In June, the UK-based international relief organization Tearfund analyzed the economic stimulus measures of the Group of Seven (G7) and found that the budget allocated to fossil fuel investments exceeded that for green investments. According to Tearfund's analysis at the time, the G7 allocated $189 billion to fossil fuel support, while $147 billion was allocated to green energy policies.

The IEA stated that according to the $380 billion execution plan, the combined public and private investment in green energy from this year through 2023 is estimated at $350 billion annually. The IEA pointed out that this is only one-third of the amount needed to achieve carbon neutrality by 2050. In a report jointly prepared with the International Monetary Fund (IMF) last year, the IEA analyzed that an annual investment of $1 trillion is required to achieve carbon neutrality by 2050.

During the process of implementing economic stimulus packages after COVID-19, governments emphasized green recovery and pledged to reduce fossil fuel use. However, Executive Director Birol pointed out, "Many governments have not yet fulfilled their promises to invest in green policies."

The gap between developed and developing countries was also confirmed to be significant. According to the IEA report, developed countries are investing an average of $76 billion annually in the green sector through 2023, while developing countries invest only $8 billion.

This content was produced with the assistance of AI translation services.