IEA urges to step up investment in clean energy

Global energy markets are on the threshold of even greater price volatility in the coming years amid insufficient investment. A shortage of raw materials is possible in all industries and regions of the world, Report informs, citing the International Energy Agency (IEA) World Energy Outlook 2021.

According to the document, the world is faced with a situation where investments in oil and gas production fell after the crises of 2014 and 2020, and investments in new types of energy are still insufficient to meet the growing needs of the planet. It says that a deficit is possible in all energy sectors and all regions. However, the IEA does not call for investments in fossil fuels, noting that investments in clean energy must be accelerated. Otherwise, the world will face a period of high turbulence and volatility, the agency warns.

At the same time, the IEA does not expect that the period of high energy prices, which began in 2021, will last for a very long time.

In its forecast, the IEA relies on three main scenarios for the development of world energy, each of which differs in the scale of climate reforms. Under all scenarios, oil demand will decline in the long term until 2050.

At the same time, the IEA warned that climate change carries risks of instability of energy systems. So, according to the agency's estimates, about a quarter of the capacity of global power grids is at risk of destruction from the effects of heavy winds. Even in the most moderate scenario, the number of days with extremely hot weather will double by 2050, increasing the load on electricity generation.

In addition, the IEA believes that too slow the pace of energy transition will increase the death toll from air pollution over the next ten years. However, if humanity achieves carbon neutrality by 2050, this risk could be reduced by 40%.