CLEAN ENERGY INVESTMENTS. International Energy Agency executive director Faith Birol delivers his keynote speech during the virtual Asia Clean Energy Forum (ACEF) 2020 of the Asian Development Bank (ADB) Tuesday (June 16, 2020). Birol underscored the need for governments to include clean energy investments in their post-pandemic recovery policies. (Screengrab from ACEF virtual forum)
MANILA – The International Energy Agency (IEA) has urged governments around the world to promote investments in clean energy in their post-pandemic stimulus policies for economic recovery.
During the opening plenary of the virtual Asia Clean Energy Forum (ACEF) 2020 of the Asian Development Bank (ADB) Tuesday, IEA executive director Faith Birol said the coronavirus pandemic has created challenges in the entire energy investments, including spending in clean energy.
Birol said the coronavirus disease 2019 (Covid-19) is causing energy spending worldwide to drop by 20 percent this year amounting to USD400 billion, which is a historical decline in global energy investments.
The IEA also said energy demand declined by 6 percent due to lockdown measures amid Covid-19.
Birol said Asia alone has a huge challenge as the region needs to mobilize USD3-trillion energy investments each year for the next decade to secure a sustainable future.
“We, in IEA, are working very hard to make sure that the governments, in the recovery packages they are preparing, put an emphasis on the clean energy incentives,” he said.
“Because in a few months of time, trillion of dollars of recovery packages will be put on the table by governments. What kind of energy policies they are going to put in will determine the future of (the) energy situation,” he added.
Birol said the cost of clean energy is also going down, which makes it a more lucrative and attractive business in the world.
With this trend, investment in clean energy such as renewables, solar, wind, hydropower, and nuclear as well as energy efficiency in industries is critical, he said.
ADB president Masatsugu Asakawa said the urgency to address climate change by accelerating clean energy transition should not be diminished because of the pandemic.
Asakawa said ADB’s USD20-billion comprehensive package for Covid-19 response also supports energy companies by providing them with working capital and helping them sustain supply chains.
“We plan for USD5 billion in energy investment for 2020 and we already approved just this first five months about USD900 million supporting renewable energy, efficiency, and electricity networks,” he said.
He added the continued investment in clean energy during this challenging period is in support of ADB’s longstanding commitment in combating climate change and Sustainable Development Goals. (PNA)
