World pouring cash into climate-saving solar, but also fossil fuels
Major polluting countries are now pouring money into solar panels that produce cheap, green energy. The world could build enough solar energy required for a key climate goa l: limiting global heating to 1.5C, according to the International Energy Agency. But one Kiwi expert warned too much cash is still flowing into fossil fuels. In 2021, the International Energy Agency (or IEA) created a roadmap on how the world could meet the 1.5C temperature target that global leaders aimed for when they signed the international Paris climate treaty. Beyond 1.5C, Pacific nations could struggle to survive and the vast majority of coral reefs could be lost. The roadmap to net-zero emissions by 2050 requires trillions to be invested in renewable energy, including solar and wind, plus a broad roll-out of EVs. In addition, finance for fossil fuels needs to significantly decrease, the body concluded. Notably, the IEA said no new coal mines or oil and gas fields were required for the transition. Since then, the IEA has tracked the money flowing into energy, and how it aligns against its roadmap. Led by China, the EU and the US, investment into clean energy kicked up a gear from 2020, the bodys latest analysis showed. The world could be in the midst of a global turning point, the IEA suggested. The EV market has doubled in just two years. If current trends continue, the IEA thinks the world will build enough solar energy to match its 1.5C roadmap. Kiwi energy expert Toby Stevenson, the director of consultancy Sapere, says thats encouraging. But solar energy is one box on a long to-do list, he warned. Solar farms need complementary technologies such as batteries to ensure power is also available when the sun isnt shining. And the world isnt spending enough on these systems or transmission, he said. China is expected to spend the most on clean energy this year, according to the IEAs analysis. At the same time, the country is one of the few building new coal-burning power stations. To a climate activist, that may seem contradictory, Stevenson said. But after droughts decreased the countrys hydropower , the Asian superpower is seeking cheap, reliable energy. Solar and wind offer cheap power, while burning coal is an easy-to-store back-up. Globally, too much money is being invested in fossil energy, the IEA analysis concluded, if the world wants to achieve 1.5C. The estimated investment is more than double the levels required, the report said. Stevenson is also concerned about this cash, amid warnings from climate scientists. Its one reason that achieving 1.5C remains really, really hard, he said. It doesnt matter how much clean energy the world builds unless it replaces coal, oil and gas meaning these planet-heating fuels are left in the ground. Fossil fuel giants will work hard to ensure its products get bought and burned, Stevenson warned. Even if large developed countries turn away from fossil fuels, the companies could seek new markets in emerging economies or encourage global energy demand to rise. That investment will be matched with predatory delay tactics on the part of the investors, he said. Our weekly email newsletter, by the Forever Project's Olivia Wannan, rounds up the latest climate events. Sign up here .