Oil and gas must end new projects to reach net zero by 2050: IEA

Fatih Birol, the IEA’s executive director and one of the world’s foremost energy economists, told the Guardian: “If governments are serious about the climate crisis, there can be no new investments in oil, gas and coal, from now – from this year.”

He also said strong new policies were needed from governments around the world: “More and more countries are coming up with net zero commitments, which is very good, but I see a huge and growing gap between the rhetoric [from governments] and the reality.”

The Paris-based global agency sets out 400 steps needed to transform how energy is produced, transported and used. These include no investment in new fossil fuel supply projects, clean energy innovation and expansion, and a fourfold increase in the deployment of solar and wind power by 2030 compared to last year’s record level.

Birol also added that while the transformation might seem like an economic burden, the transformation would create millions of new jobs and boost economic growth worldwide, adding an extra 0.4 percentage point a year to annual global GDP growth, based on their  joint analysis with the International Monetary Fund.

The energy expert  warned that while countries and companies have begun to set bold targets for cutting emissions of carbon dioxide and other greenhouse gases in the coming decades, actual emissions continue to rise substantially. The IEA said last month that 2021 will see the second-largest annual increase in emissions since 2010 as the world economy bounces back from the pandemic.

“There is a growing gap between the rhetoric we hear from governments and industry leaders, and what is happening in real life.

“Beyond projects already committed as of 2021, there are no new oil and gas fields approved for development in our pathway, and no new coal mines or mine extensions are required,” he said.

The IEA said the power sector needs to lead the way, with electricity generation achieving net zero by 2035 in the major economies and globally five years later. Birol also highlighted that the technology needed to reach net zero is neither blue-sky nor futuristic. He said: “These technologies are already invented, but not yet in full development. Innovation is critical, but the technologies are here with us.”

Some of these new technologies in development are: advanced batteries, particularly for use in electric vehicles; hydrogen; and carbon capture.

These crucial energy sources will be needed in sectors that are hard to decarbonise, such as steel and cement manufacturing, aviation and shipping, and those using heavy-duty road vehicles and the rest could be decarbonised using economical technologies that are already in widespread use, such as wind and solar power.