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