London: An investment of USD 13.5 trillion is required for full implementation of climate pledges that world’s nations have offered ahead of the Paris climate summit in December, the International Energy Agency (IEA) said Wednesday.
However, despite these efforts, the pledges — known as Intended Nationally Determined Contributions (INDCs) — still fall short of the major course correction necessary to achieve the globally agreed climate goal of limiting average global temperature rise to 2 degrees celsius, it said.
The energy industry needs a strong and clear signal from the Paris Climate Summit, it added.
“Full implementation of climate pledges will require the energy sector to invest USD 13.5 trillion in energy efficiency and low-carbon technologies from 2015 to 2030, representing almost 40 per cent of the total energy sector investment,” IEA said while releasing a World Energy Outlook (WEO) special briefing in Paris.
The briefing finds that if these pledges are met, then countries currently accounting for more than half of global economic activity will see their energy-related greenhouse gas emissions either plateau or be in decline by 2030.
Global energy intensity, a measure of energy use per unit of economic output, would improve to 2030 at a rate almost three times faster than the rate seen since 2000, it said in a statement.
Asserting that the energy industry needs a strong and clear signal from the Paris Climate Summit, IEA Executive Director Fatih Birol said, “Failing to send this signal will push energy investments in the wrong direction, locking-in unsustainable energy infrastructure for decades.”
According to the Paris-based agency, around USD 8.3 trillion is needed to improve energy efficiency in the transport, buildings and industry sectors, while much of the remaining investment is to decarbonise the power sector.
More than 60 per cent of total investment in power generation capacity is projected to be for renewable capacity, at USD 4 trillion, with one-third of this being for wind power, almost 30 per cent for solar power and around one-quarter for hydropower, it said.
While OECD (Organisation for Economic Co-operation and Development) countries absorb 60 per cent of energy efficiency investment (USD 5 trillion), non-OECD countries absorb a greater share of the investment in low-carbon technologies (USD 2.7 trillion), it added.
IEA further said that achieving the ultimate climate goal will also hinge critically on innovation in the energy sector and on the deployment of new and emerging energy technologies that have the potential to deliver transformational change needed to achieve deep levels of decarbonisation in the decades to come.
The briefing also finds that all of the INDC submissions take into account energy sector emissions and many include specific targets or actions to address them.
Birol further said: “The fact that over 150 countries ?- representing 90 per cent of global economic activity and nearly 90 per cent of global energy-related greenhouse gas (GHG) emissions ?- have submitted pledges to reduce emissions is, in itself, remarkable.”
“These pledges, together with the increasing engagement of the energy industry, are helping to build the necessary political momentum around the globe to seal a successful climate agreement in Paris,” he added.
IEA is an autonomous organisation representing some of the world’s largest oil consumers. It works to ensure reliable, affordable and clean energy for its 29 member countries and beyond.