New Delhi: Accelerating the adoption of clean energy technologies could significantly enhance the affordability of energy and alleviate broader pressures on the cost of living, according to a special report released by the International Energy Agency (IEA).
The report, titled “Strategies for Affordable and Fair Clean Energy Transitions,” indicates that aligning global efforts to achieve net-zero emissions by 2050 would not only necessitate increased investment but would also reduce the operating costs of the global energy system by more than half over the next decade, compared to current policies.
IEA Executive Director Fatih Birol emphasized the urgency and economic benefit of rapid clean energy transitions. “The data makes it clear that the quicker you move on clean energy transitions, the more cost-effective it is for governments, businesses, and households,” Birol said. “If policymakers and industry leaders put off action and spending today, we will all end up paying more tomorrow.”
The report highlights the cost competitiveness of renewable energy sources like solar PV and wind compared to traditional fuels such as coal, natural gas, and oil. It also points out that significant upfront investment is required, particularly in developing and emerging economies, where investment in clean energy is often hindered by real or perceived risks.
Despite the economic benefits, the report noted that global energy subsidies heavily favor fossil fuels, with governments worldwide spending approximately $620 billion on fossil fuel subsidies in 2023, compared to just $70 billion on support for consumer-facing clean energy investments.
The IEA report also detailed the potential for renewable energy to lower consumer costs and increase predictability in energy pricing. It argues that as electric vehicles and other electric technologies take a larger share of the energy mix, electricity will become the primary energy source for consumers, overtaking oil by 2035.
The report concluded by calling for greater support and incentives, particularly targeted at poorer households, to improve the uptake of clean energy technologies and achieve international energy and climate goals. It suggests a series of measures to make clean technologies more accessible, including energy efficiency programs for low-income households and more support for public transport and second-hand EV markets.
