Global emissions expected to surge with only 2% of global recovery spending going to clean energy - IEA

A large portion of the $16 trillion fiscal spendings by governments all over the world to get their economies on track from the COVID-19 pandemic has been concentrated on providing emergency financial relief for households and firms. The dismal level appropriated for clean energy interventions are found to not just deviate the world from the net-zero pathway, it is also not enough to avert a surge of global emissions in the light of increasing demand in the coming years, according to the IEA’s flagship report, Sustainable Recovery Tracker.

The shortfall in clean energy spending is also seen to be more apparent in emerging and developing economies that have already been facing financing challenges to start with. They are only able to mobilize 20% of the needed clean energy financing compared to the 60% that advanced economies are able to tap to meet their requirements.

The Tracker monitors government spending allocated to sustainable recoveries and then estimates how much this spending boosts overall clean energy investment and to what degree this affects the trajectory of global CO2 emissions. The Tracker considers over 800 national sustainable recovery policies in its analysis, which are publicly available on the IEA website.