Energy Investments Aren’t Enough to Bring Down Prices, IEA Say
Investments in global energy supplies will jump this year, led by an expansion in no-emission or low-emission capacity but the spending won’t be sufficient to tame soaring energy prices, or meet global climate targets, the International Energy Agency said.
The most severe global energy crisis in decades, brought on in part by Russia’s invasion of Ukraine, has caught companies
and investors between longstanding efforts to transition to cleaner energy sources and more immediate demands to rapidly increase supply to contain soaring prices.
The latest investment figures, published by the Paris-based agency in an annual report Wednesday, suggest energy investment levels are struggling in both regards, the IEA said.
“As things stand, today’s energy investment trends show a world falling short on climate goals, and on reliable and affordable energy,” the report said.
Total energy investment is forecast to rise by 8% this year to $2.4 trillion, above pre-Covid-19 levels.
A jump in spending on clean and renewable energy sources comprises the largest chunk of the rise..
a promising sign for global efforts to reduce carbon emissions following years of lackluster growth, the IEA said.