The International Energy Agency (IEA) has warned that the transition to clean energy is still too slow for what’s necessary to limit climate change catastrophes. There’s the risk of high volatility of fuel prices and consequently of electricity caused by the lack of investments in renewable energy sources.
The uncertainty of government commitments to invest in renewable energy is creating the conditions for an extremely volatile period regarding fuel prices and consequently inflation, from an increase in the prices of all goods that depend on petroleum, its derivatives and gas for their production and for their transport.
Despite the progress made, current government commitments relating to policies for limiting climate change arrive at less than 20% of the roadmap for zero emissions by 2050. The target should be for current technologies, supported by adequate political choices, to fill this gap by 2030. It should be underlined that it is estimated that over 40% of the actions that limit climate changes are also economically viable, and therefore represent a valid economic investment.
The IEC expects at least three things from COP26, the 26th United Nations Climate Change Conference, organised by the United Kingdom and Italy:
- 1. that the number of countries committed to climate issues increases, for the target of 20% to become much higher and achieved in a shorter time period;
- 2. given that it is estimated that 90% of the future growth of emissions of CO2 is attributable to emerging countries, during COP26 it will be necessary to reach agreements to finance the necessary investments supporting renewable energy, precisely in those countries which it is feared will be protagonists in the growth of emissions;
- 3. the political leaders of the large economies, EU, USA, China and India must commit to a clear message: “if the consumption of resources in the old sectors of “dirty”, non-renewable energy continues, there is the risk of heavy financial losses caused by uncertainty”.
The World Energy Outlook underlines the need for more investments in renewable, clean energy. The current strong turbulence in the financial markets is for the most part generated by a solid post-pandemic recovery which is not clearly sustainable, that is, without adequate investments in renewable energy. It appears, moreover, that in government recovery and resilience plans (similar to Italy’s Recovery and Resilience Plan), insufficient actions have been considered to support renewable energy sources.
The rich and developed countries must lead in the promotion of centres of excellence in the research and development of cutting-edge technologies which are aimed at electrification, as well as mobility, energy efficiency and sustainability in order to limit pollution and climate change.