More finance is needed for the energy transition
Energy transition spending must increase – IEA
Shortfalls in funding are particularly pronounced in emerging economies, where capital markets can be hard to access
Governments worldwide have spent $320bn to support the energy transition as part of Covid-19 recovery spending, only 2pc of total fiscal support and well short of levels needed to achieve the goals of the Paris Agreement, according to the IEA. The shortfalls are particularly pronounced in emerging economies, many of which face a raft of problems in financing energy transition technologies. These governments have to pursue multiple energy-related development goals—beginning with universal energy access. They also lack adequate access to capital markets to be able to raise debt for infrastructure projects. “Governments need to increase spending and policy action rapidly” Birol, IEA Man
Also in this section
8 March 2025
Honouring the trailblazing women shaping the future of hydrogen
4 March 2025
Rising power demand has boosted the prospects for CCS as some more established transition technologies come under pressure
27 February 2025
Governments working at pace to create compliance and voluntary markets and carbon tax regimes, with Indonesia, Malaysia, Singapore among the frontrunners
18 February 2025
Demand for CCS to abate new gas-fired plants is rising as datacentres seek low-carbon power, Frederik Majkut, SVP of industrial decarbonisation, tells Carbon Economist
