Governments worldwide are deploying an unprecedented amount of financial support aimed at stabilising and rebuilding their economies, but only about 2 per cent of this spending has been allocated to clean energy measures, according to an analysis from the International Energy Agency.
The sums of money, both public and private, being mobilised worldwide by recovery plans fall well short of what is needed to reach international climate goals. These shortfalls are particularly pronounced in emerging and developing economies, many of which face particular financing challenges.
Under governments’ current recovery spending plans, global carbon dioxide (CO2) emissions are set to climb to record levels in 2023 and continue rising in the following years. This would leave the world far from the pathway to net-zero emissions by 2050.
“Since the Covid-19 crisis erupted, many governments may have talked about the importance of building back better for a cleaner future,” Fatih Birol, Executive Director of the IEA, said. “Despite increased climate ambitions, the amount of economic recovery funds being spent on clean energy is just a small sliver of the total.”