The IEA plans to invest $ 3 trillion in clean energy technologies by 2023 to support the recovery of the economy after the coronavirus crisis. The funding will be allocated to six priority sectors and will create 9 million jobs by 2023.
The International Energy Agency (IEA) has just unveiled its Sustainable Recovery Plan which will reduce the damage caused to the economy by the Covid-19 over the next three years. The plan will involve injecting $ 1,000 billion annually from 2021 to 2023 into renewable energy technologies.
This stimulus will increase global GDP by 3.5% by 2023 compared to the level that would have been observed in the absence of any specific support mechanism. An additional nine million jobs will be created in the energy sector while the emission of 4.5 billion tonnes of CO 2 will be avoided over the same period.
According to the IEA, the plan aims to avoid as far as possible a significant rebound in CO 2 emissions , similar to that which occurred after the economic crisis of 2008. The plan will focus on six important sub-sectors which are: electricity, transportation, industry, construction, fuels, emerging low-carbon technologies.
The plan will also be integrated into the energy transition initiatives announced with more than 9,000 billion investments in support measures.
“With the stimuli to come, attention is now turned to long-term stimulus plans, which aim to compensate for the disruptions caused by containment measures and the restriction of mobility. Some of these plans already include energy and its role could increase in the form of successive waves of spending to stimulate the economy, ” said Fatih Birol (photo), the executive director of the IEA.
Source: Agence Ecofin