IEA communiqué urges upping clean energy investments to $ 4.5 trln by 2030

19 / 02 / 2024

By Marwa Nassar - -

The Communique of the 287th Meeting (2024) of the International Energy Agency (IEA) Governing Board at Ministerial Level called for upping clean energy investment from all sources needs to reach $ 4.5 trillion per year by 2030 to limit warming to 1.5°C.

The communique noted that the financial investments necessary for the clean energy transitions will need to come from both public and private capital.

Clean energy investment in emerging markets and developing economies will need to more than triple to $ 2.2-2.8 trillion per year by the early 2030s, according to the communique.

The communiqué was issued by the Ministers, responsible for energy of the IEA members and the European Union, met in Paris on 13-14 February 2024, with Irish Minister for Environment, Climate and Communications Eamon Ryan and French Minister Delegate in charge of Industry and Energy Roland Lescure serving as Co-Chairs, and Australian Minister for Climate Change and Energy Chris Bowen, Canadian Minister of Energy and Natural Resources Jonathan Wilkinson, Dutch Minister for Climate and Energy Policy Rob Jetten, and Polish Minister of Climate and Environment Paulina Hennig-Kloska, supporting as Vice Chairs.

“Recognizing the critical role of energy in the fight against climate change, and recalling the COP 28 Global Stocktake decision calling upon parties to contribute to various global efforts in a nationally determined manner, we emphasize the global need to transition away from fossil fuels in energy systems, in a just, orderly, and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science, as recognized by the outcome of the first Global Stocktake and aligning with the trajectories required to limit global average temperature increases to 1.5°C. We take note of the Secretariat’s analysis that, based on today’s policy settings, demands for all fossil fuels will peak before 2030,” the communique added.

“We call upon the IEA to continue to put climate change and sustainable development along with energy security at the centre of its activities and analysis. We acknowledge the important analysis of the IEA’s Net Zero Roadmap report including that no new unabated coal power plant should be built, and note that in a scenario that hits global net zero emissions by 2050, declines in demand are sufficiently steep that no new long lead-time conventional oil and gas projects are required. This report also recommends key global targets, such as tripling global renewable energy capacity and doubling the global average annual rate of energy efficiency improvement by 2030. Those significant findings provide good guidance on how to orderly transition away from fossil fuels, as called by the parties at COP28. We recognize the role that non-combustion uses of fossil fuels which are consistent with net zero trajectories can play in the fight against climate change,” read the communique.

“We direct the IEA to further strengthen its work tracking the progress of the energy transition, to provide analysis in support of countries in the formulation of the energy-related aspects of the next round of their Nationally Determined Contributions, as well as national level pathways to reach net zero emissions with a particular focus on emerging markets and developing countries. We recognize the important role that the IEA Clean Energy Transitions Program (CETP) has and will play in supporting this process. We also appreciate the IEA’s work on processes such as the Indonesia JETP and the Latin America Energy Outlook,” the communiqué added.

“We highlight the important role of diversity and gender equality in unlocking the talent and capabilities needed to achieve our shared energy and climate objectives. We commend the continuing work of the IEA Gender Advisory Council including its recommendations to accelerate gender mainstreaming across our institutions, improve gender data collection and support the Equality in Energy Transitions Initiative. We endorse the Council’s call for all IEA members, Accession and Association countries to join the Equal by 30 Campaign,” highlighted the statement.

“We direct the IEA to continue supporting governments in advancing just people-centered energy transitions to ensure inclusivity with a focus on skills, decent jobs, worker protection, leadership opportunities and social and economic development, to lift up quality of life for people around the world, through its analysis, exchange and best practice advice. This should encompass key areas such as employment, investment and energy access to foster a more inclusive and equitable transition, addressing in particular human, labor, Indigenous Peoples and local communities’ needs and giving a priority to the most vulnerable. We also recognize the importance of and the IEA’s role in tracking progress on SDG 7.”

“We reaffirm our commitment to the principle of energy efficiency as the “first fuel”. Building on the Versailles Statement of the IEA’s 8th Annual Global Conference on Energy Efficiency, we aim to strengthen energy efficiency action through implementation of effective policy, creation of conditions to attract investment, measures targeted at influencing and responding to consumer preferences, such as sufficiency measures, and technological improvements across all sectors. We support stronger policies and actions towards the goal of putting the world on track to achieving a doubling of the global average annual rate of energy efficiency improvements by 2030, while respecting national circumstances, and we welcome the consensus at COP 28 in this regard. We look forward to the 9th Annual Global Conference on Energy Efficiency to be co-hosted by Kenya in Nairobi in 2024,” the communiqué underlined.

“We reaffirm our commitment to contribute to tripling renewable energy capacity globally by 2030, taking into account national circumstances, and applaud the attainment of consensus at COP 28 calling on all Parties to contribute to its achievement. Recognizing the barriers to faster renewables deployment within the current macro-economic and geo-political context, we underline the importance of urgent policy action to address these challenges. We request the sustained support of the IEA to provide policy recommendations in priority intervention areas, including investments in power grids, lowering costs of financing in developing states, and speeding up permitting. In this context, we must extend the resilience and reliability and increase the utilization of renewable energy through measures such as grid-scale batteries, pumped-storage hydropower and other storage technologies, grid reinforcements, smart grids, digitalized demand response, PV self-consumption, distributed generation, and the proactive role of consumers as prosumers. We encourage interested IEA members to consider policies and measures for enhancing flexibility including the formulation of global targets on storage, grids or flexibility and direct the Secretariat to assist those members willing to work towards such policies, measures, and a potential global target,” the communiqué added.

The communique said “We applaud the significant input to global energy and climate policy that the IEA has made under Executive Director Birol’s leadership as it has evolved into an “IEA 3.0”, helping to guide our responses to the energy crisis, sustaining the global transition towards clean energy, supporting international processes as well as through the progress made in implementing its “opening doors” policy and the related Association initiative.

“As we celebrate the 50th anniversary of the IEA, we are determined that, driven by its members, the IEA will continue to be at the heart of global dialogue on energy, providing authoritative analysis, data, policy recommendations, and real-world solutions to help countries, within and outside of the IEA membership, in the global effort to maintain energy security and accelerate clean energy transitions to attain net zero greenhouse gas emissions by 2050. We therefore reaffirm our commitment to ensuring an Agency that is “fit for purpose” to deliver on our vision and priorities in view of the increased ambition for the role of the IEA to 2050 as a global leader on energy for a secure net zero economy with shared prosperity,” read the communique.