IEA Urges Low-Carbon Energy Investments

EurActiv (11/12) - The world will need to spend an additional $10.5 trillion in the next two decades on energy efficiency and low-carbon energy to avoid runaway climate change, according to the International Energy Agency (IEA). The agency published its annual World Energy Outlook on Tuesday (10 November), detailing what needs to be done to move to a sustainable energy future.

Improved energy efficiency would bring the lion's share of CO2 cuts in 2030, according to the report. Deployment of renewables would account for another fifth, while using biofuels in the transport sector would bring cuts of about 3%. Finally, carbon capture and storage (CCS) technologies and nuclear could each slash emissions by 10%, it said.

The IEA sees a forerunner role for China, where national policies and measures that are already planned by the government could bring 25% of the total cuts required.

Nevertheless, the IEA argued that the required extra $10.5 trillion of investment in energy efficiency and low-carbon energy by 2030 will more than pay itself back. Energy bills in transport, buildings and industry alone would be reduced by $8.6 trillion over the next two decades, it said.

International Energy Agency (IEA): World Energy Outlook 2009 Edition