World could face energy shortage as investment lags demand says global energy agency
The world is “storing up” future risks as investment in both fossil fuels and renewables may not meet global increases in energy demand, the head of the International Energy Agency has warned.
More than $1.8 trillion was invested in global energy projects in 2018, broadly flat on the year before, the IEA said today.
Read more: UK goes a week without burning coal
But, it warned, there is not enough investment in energy efficiency and clean energy sources to bring the world in line with the Paris Agreement targets on climate change.
Meanwhile, monies for fossil fuels are also not enough to meet demand.
“The world is not investing enough in traditional elements of supply to maintain today’s consumption patterns, nor is it investing enough in cleaner energy technologies to change course. Whichever way you look, we are storing up risks for the future,” said IEA executive director Fatih Birol.
The IEA’s report showed that money spent on coal power plants reached its lowest level so far this century, while the number of plants being taken offline rose.
But, regardless, the number of plants continued to rise, driven by growth in Asian economies.
It comes as the UK is slowly weaning itself off coal. Figures out yesterday from the British Geological survey showed that coal production fell by more than 80 per cent between 2012 and 2017, to just over 3m tonnes.
Earlier this month Britain went for more than a week without burning coal in its energy network, the first time since the industrial revolution, and beating the previous record of just under four days which was set this Easter.
Read more: Britain must cut emissions to zero by mid-century, government told
However, with coal still a vital component in the steel making process, permission was granted in March for the UK’s first new metallurgical coal mine in 30 years, in Cumbria.
Birol said that more commitment was needed from governments around the world as official leadership “is critical to reduce risks for investors in the emerging sectors that urgently need more capital to get the world on the right track.”