Fossil-Fuel Reliance Puts World on Track for 3.6-Degree Rise in Temperature

Global investment in fossil-fuel energy continues to outpace new spending on renewable sources, leaving the world on track for temperature increases of at least 3.6 degrees, according to a new report by the International Energy Agency.

Last year, more than $1.1 trillion was poured into the extraction, transport and burning of fossil fuels, producing much of the greenhouse gas emissions largely blamed for global warming.

By contrast, $250 billion was invested in clean energy sources, such as solar and wind energy, down from the 2011 peak of $300 billion, the Paris-based IEA said in its inaugural World Energy Investment Outlook study.  Energy efficiency efforts attracted another $130 billion.

To keep global warming to within 2 degrees of pre-industrial levels – the internationally agreed target – annual investment in low-carbon energy supply would need to rise to almost $900 billion and spending on energy efficiency needs to exceed $1 trillion, said the IEA’s chief economist, Fatih Birol.

“Dependable policy signals will be essential to ensure that these (renewable energy) investments offer a sufficiently attractive risk-adjusted return,” Dr Birol told Fairfax Media.

Policymakers have “the most important role to play” in driving such investments, he said. “They need to provide clear and credible signals that lower risks and inspire confidence if we are to switch investment to low-carbon sources and energy efficiency at the necessary scale and speed to meet the world’s climate change target.”

Fossil-Fuel Reliance Puts World on Track for 3.6-Degree Rise in Temperature: report