The International Energy Agency has released an energy sector framework for governments to boost economic growth, create new employment opportunities and accelerate cleaner energy infrastructures.
The World Energy Outlook Special Report on Sustainable Recovery was published on Thursday by the IEA, based on analysis conducted in cooperation with the International Monetary Fund, Kallanish Energy learns.
The framework includes a series of actions that could be implemented within governmental policies and targeted investments between 2021 and 2023, the IEA said, as policymakers seek to address the consequences of the Covid-19 pandemic.
Such recommendations include accelerating the deployment of low-carbon electricity sources; improve the energy efficiency of buildings and appliances; promote the use of electric vehicles and high-speed rail; develop the efficiency of industrial equipment used for manufacturing, food and textiles; and boost innovation in crucial technology areas including hydrogen, batteries, carbon capture utilisation and storage, and small modular nuclear reactors.
Revitalizing economic growth will be a key area of focus and the IEA has stated that through its recommendations, global economic growth could be increased by an average of 1.1 percentage points per year.
The plan could also safeguard or create upwards of 9 million jobs on an annual basis, and reduce annual global energy-related greenhouse gas emissions by a total of 4.5 billion tonnes by 2023.
The IEA estimates these targets can be achieved through global investment of roughly $1 trillion annually over the next three years – it includes both public spending and private finance mobilised by government policies. The agency expects global energy investment to fall by 20% in 2020, which will severely impact energy transition projects.
“Governments have a once-in-a-lifetime opportunity to reboot their economies and bring a wave of new employment opportunities while accelerating the shift to a more resilient and cleaner energy future,” said Fatih Birol, executive director of the IEA.
“Policymakers are having to make hugely consequential decisions in a very short space of time as they draw up stimulus packages. Our Sustainable Recovery Plan provides them with rigorous analysis and clear advice on how to tackle today’s major economic, energy and climate challenges at the same time. The plan is not intended to tell governments what they must do. It seeks to show them what they can do.”
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