Clean energy investment in recovery plans for the Covid-19 crisis has increased by 50% in last five months and currently surpasses US$710 billion globally, according to International Energy Agency’s evaluation report released on Tuesday.
This “unprecedented” data, pointed out by the agency, is more than 40% higher than the ecological spending included in the government’s stimulus measures following the 2008 financial crisis.
However, this figure conceals significant development inequities, including the fact that advanced nations contribute for the majority of this number, with US$370 billion set aside before the end of 2023. The amount aligned with the investment level which the organization considers necessary for developed nations to meet net-zero emissions goal by 2050.
In contrast, in emerging and developing countries, public finances for long-term recovery are a tenth of what they are in advanced economies. As shown by the report, from now to the end of 2023, only around US$52 billion is estimated to be spent in these countries, which is “an amount far less than what is required to achieve a path towards zero net emissions in 2050.”
According to the agency, closing the gap in the short term is improbable since governments with limited fiscal resources are now faced with the issue of maintaining food and fuel prices stability for their residents in an inflationary environment as a result of Russia's invasion of Ukraine, which pushed up global commodity prices.
“Countries where clean energy is at the heart of recovery plans keep alive the possibility of reaching net-zero emissions by 2050,” said executive director Fatih Birol in a statement, “but financial and economic conditions have undermined public resources in the rest of the world.”
He went on to say, “The world needs to massively scale up its clean energy deployment efforts over this decade, especially in developing economies if we are to hold out hope of limiting global temperature rise to 1.5 C.”
