IEA Calls for a New Clean Energy Deal

As greenhouse emissions show no sign of decline, the International Energy Agency has called for a framework to be put in place that will guide investment and enable sustainability to progress.

Greening the energy sector requires additional investment of $3.6 trillion in power plants and $5.7 trillion in energy efficiency from 2010-2030; these projects could have customers saving $6 trillion from fuel costs, according to the IEA publication World Energy Outlook 2008 (WEO 2008).

“By adopting new energy efficiency measures, constructing green energy infrastructure, and taking steps to integrate cleaner energy into the power grids, governments can lock in sustainable technologies and reduce CO2 emissions by almost 40% relative to the projected baseline emissions for 2030,” the report said.

“The global economic slowdown must be viewed as an opportunity, not a distraction from efforts to mitigate climate change. Countries planning fiscal stimulus packages should invest in energy efficiency and clean technologies to build sustainable energy infrastructure,” said Nobuo Tanaka, Executive Director of the International Energy Agency (IEA), today at the UN climate talks (COP14) in Poznan, Poland. “This sort of ‘Clean Energy New Deal,’ not only generates economic growth and makes sense from an environmental standpoint, but also enhances energy security. All countries could benefit,” he added.

The WEO 2008 presents scenarios based on a hybrid policy approach combined with a combination of cap-and-trade systems, sectoral approaches, and national measures. The IEA also supports the inclusion of carbon capture and storage into the Clean Development Mechanism (CDM). In addition, four key points were made to progress the sector:

·         Countries planning stimulus programs to construct new energy infrastructure and enhance energy efficiency must identify and deploy clean technologies.

·         The power generation sector – where the risk of carbon lock-in is highest – needs a strong carbon price signal to divert investment away from CO2-emitting capacity; efforts to incorporate more renewables into the power grid should be encouraged.

·         Some of the more globalized industries could rely on sectoral approaches to achieve reductions while removing competitiveness concerns that arise as installations in parts of the world stand to gain competitive advantage on the back of climate policy.

·         All countries must take immediate steps to revise their current energy efficiency policies.

“The IEA is ready to provide robust data and analysis to support action, to advance practical solutions to climate change in the energy sector,” Tanaka emphasized.