IEA: More Renewable Investment Required to Stabilise European Energy Markets
Guest essay by Eric Worrall
According to Dr. Fatih Birol, $4 trillion per year of global renewable investment would reduce European dependence on Russian Gas, though Russia is also to blame for the recent energy crisis for not sending more gas.
IEA: Green energy needed to avoid turbulent prices
By Jonathan Josephs
Business reporter, BBC News
A failure to invest sufficiently in green energy means “we may well see more and more turbulence in the energy markets”, the head of the International Energy Agency has told the BBC.
Dr Fatih Birol said that “is not good news for the global economy”.
Energy prices in the UK, Europe and Asia have hit record highs in recent weeks triggering inflation concerns.
IEA’s annual World Energy Outlook warns clean energy and infrastructure need a $4 trillion a year investment.
Such an outlay would mean the world could limit the rise in global temperatures to 1.5 degrees above pre-industrial levels, as agreed in Paris six years ago.
The warning has been timed to greet the COP26 climate change summit, due to take place in Glasgow at the end of this month. Dr Birol said it was up to world leaders to incentivise the necessary investment at the summit.
“If you push clean energy, energy efficiency, solar electric cars and other [solutions], you don’t need any more to use fossil fuels, you switch to clean energy sources.
Russia, which is one of the world’s biggest producers of natural gas has been accused of withholding supplies that could ease those price pressures for political reasons. Dr Birol said “Russia could have been, and still can be more helpful. Our numbers show that Russia can easily increase the gas it is sending to Europe by 15%, which could underscore that they could be qualified as a reliable partner.
“There are some statements coming from Moscow, which are helpful. But in addition to the statements, I would be very happy to see some gas volumes come to Europe”.
The IEA boss says that government money could be the trigger for renewed private investment in clean energy and the he is optimistic about what can be achieved in Glasgow.
“It’s also very important that in COP government leaders around the world come together, unite and give a unmistakable signal to investors, saying that you investor, you see we are united to build a clean energy future”, but that “if you continue to invest in the old energy [such as fossil fuels], you may well lose money”.
“If you invest in the clean energy, you can make handsome profits. That’s [the] political signal I hope will go to investors“.Read more: https://www.bbc.com/news/business-58901566
My question to Dr. Birol – how is Russia expected to supply more gas to Europe, without investing in “old energy”? Is IEA head Dr. Fatih Birol demanding Russian investors sacrifice themselves for the greater good of Europe?
Can you imagine what it must be like for Russian trade representatives discussing energy sales with their European counterparts? “You guys are evil, but please send some more evil right now, because your withholding of evil is evil”.
No doubt President Putin has tears of laughter streaming from his eyes, whenever he receives an update of the latest insanity of his trading partners.