Finance allocated to clean-energy globally only accounted 2% of the $16 trillion in total fiscal support for economic stimulus in respond to the COVID-19 crisis, the International Energy Agency said in its Sustainable Recovery Tracker.
By the end of the second quarter of 2021, $380 billion was reserved to clean energy projects and another $350 billion is expected to be added between 2021-2023, which is far below what is required to meet global climate goals and is expected to result in a surge of carbon emission, IEA warned.
This sum only represented 35% of what is required to meet the Sustainable Recovery Plan outlined in its report. And the economic recovery measures announced by governments would result in Co2 emission surge to record high in 2023 and continuous rise.
While the Co2 trajectory is 800 million tonnes lower in 2023 than it would have been without any emission cut efforts, and is still 3,500 million tonnes above the pathway set out in the Net Zero by 2050, which require $1 trillion of spending globally in the clean energy measures in recovery plans.
"Since the Covid-19 crisis erupted, many governments may have talked about the importance of building back better for a cleaner future, but many of them are yet to put their money where their mouth is," IEA executive director Fatih Birol said in a statement.
"Not only is clean energy investment still far from what's needed to put the world on a path to reaching net-zero emissions by mid-century, it's not even enough to prevent global emissions from surging to a new record," he warned.
The Tracker also showed that most of the fund came from G20 economies. The dedicated fund by these advanced economies was about $76 billion a year in government spending from 2021-2023, and is expected to meet 60% of the investment needs for the sustainable recovery plan.
By contrast, emerging and developing economy governments have only set yearly $8 billion over the same period.
In conclusion, spending on green energy had not been in tantamount to scale of the ongoing environmental crises of climate change, nature loss and pollution.
(Writing by Lilya Li Editing by Emma Yang)
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