{"id":41530,"date":"2020-03-17T14:58:50","date_gmt":"2020-03-17T14:58:50","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=41530"},"modified":"2020-03-17T15:33:00","modified_gmt":"2020-03-17T15:33:00","slug":"governments-historic-opportunity-accelerate-clean-energy-transition-iea-says","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2020\/03\/17\/governments-historic-opportunity-accelerate-clean-energy-transition-iea-says\/","title":{"rendered":"Governments have ‘historic opportunity’ to accelerate clean energy transition, IEA says"},"content":{"rendered":"

Political and financial leaders have “a historic opportunity” to usher in a new era for global climate action with economic stimulus packages to confront the coronavirus pandemic, the head of the International Energy Agency (IEA) has said.<\/strong><\/p>\n

In an interview with Climate Home News on Tuesday, Fatih Birol said stimulus packages to prop up economic recovery marked a critical moment for governments to \u201cshape policies\u201d in line with climate action.<\/p>\n

\u201cI am talking with several governments and international financial institutions leaders because they are all busy designing stimulus programmes for the economy \u2013 the plans they will put together will be extremely important,\u201d he said.<\/p>\n

\u201cThis is the reason I am telling them that we can use the current situation to step up our ambition to tackle climate change.\u201d<\/p>\n

Birol said he had urged political and global financial leaders to design \u201csustainable stimulus packages\u201d that focus on investing in clean energy technologies and accelerate the transition away from fossil fuels.<\/p>\n

\u201cThis is a historic opportunity for the world to, on one hand, create packages to recover the economy, but on the other hand, to reduce dirty investments and accelerate the energy transition,\u201d he said.<\/p>\n

Coronavirus:<\/strong> China\u2019s economic slowdown curbs deadly air pollution<\/a><\/p><\/blockquote>\n

The health crisis has hammered the economy in the week since the World Health Organisation declared coronavirus a pandemic. Stock markets have seen some of their toughest days of trading, sparking fears of a global economic recession.<\/p>\n

The aviation industry has come under particularly strains in recent weeks, with a number of airlines announcing a dramatic scale-back of their operations and executives calling for government bailouts to avoid bankruptcy<\/a>.<\/p>\n

\u201cThe global economy is going through very difficult times and the energy sector is disproportionately affected,\u201d said Birol. \u201cAviation represents 1% of the global economy but it\u2019s 8% of global oil consumption.\u201d<\/p>\n

\u201cI understand that when I talk to governments, they are very much preoccupied with the current economic turmoil but we should keep the eye on the ball that is addressing climate change,\u201d he said.<\/p>\n

Birol was speaking before reports<\/a> in US media that President Donald Trump would be seeking an $850 billion stimulus package, including $50 billion for airlines.<\/p>\n

Last year, a report by UN Environment<\/a> found the world needed to cut emissions by 7.6% per year until 2030 to limit global warming to 1.5C by the end of the century \u2013 the tougher temperature goal countries committed to under the Paris Agreement.<\/p>\n

Coronavirus<\/strong> may toughen airlines\u2019 goals for curbing emissions in 2020s<\/a><\/p><\/blockquote>\n

In most recent years, global emissions have increased but they stagnated in 2019, according to an IEA analysis<\/a>.<\/p>\n

Birol insisted 2019 could mark a definite peak in emissions, but only if governments seized interventions to recover from the impacts of the coronavirus as the moment to gear the economy towards a green transition.<\/p>\n

\u201cIt may well be the case that we will see 2020 emissions decline. In my view, this is not a reason to celebrate because emissions reduction should be the result of right energy policies,\u201d he said.<\/p>\n

In a statement<\/a> last week, Birol wrote that such policies could include large-scale investments in clean energy technologies such as solar, wind, hydrogen and carbon capture and storage technologies.<\/p>\n

The massive investment plan outlined by Birol echoed proposals such as the EU Commission’s “green deal for Europe” aimed at accelerating the shift of capital towards the green economy while creating climate-proof jobs.<\/p>\n

The IEA has previously come under criticism for underplaying the speed of renewable energy deployment and for not considering the Paris Agreement\u2019s more ambitious target of 1.5C<\/a> in its influential World Energy Outlook scenarios.<\/p>\n

Climate news in your inbox?\u00a0Sign up\u00a0here<\/a><\/strong><\/p><\/blockquote>\n

Birol also advocated for countries to capitalise on low interest rates to boost innovation on hydrogen and carbon capture and storage technology, and use the opportunity of steep reductions in oil prices to cut fossil fuel consumption subsidies<\/a>.<\/p>\n

The IEA estimates annual fossil fuel consumption subsidies are worth $400 billion worldwide, 40% of which are used to make oil products cheaper.<\/p>\n

Birol expressed optimism governments could bend the emissions growth curve this year because of a number of favourable factors.<\/p>\n

An IEA analysis found that 70% of global energy investments is driven by governments directly or indirectly as a response to policy. Meanwhile, the low cost of clean energy strengthens the economic case for the clean energy transition to drive stimulus packages.<\/p>\n

\u201cThis is a huge opportunity we cannot miss,\u201d he said.\u00a0\u201cHere the issue is not only the level of money [dedicated to stimulate the economy] but the direction of the money,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"IEA head Fatih Birol is calling on heads of state and international financial institutions to make coronavirus recovery plans sustainable 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