Construction Industry News
Accelerating the adoption of clean energy technologies could significantly improve energy affordability and ease broader pressures on the cost of living, according to a special report from the International Energy Agency (IEA).
The report, titled 'Strategies for Affordable and Fair Clean Energy Transitions', highlights that aligning global efforts to achieve net-zero emissions by 2050 would not only require increased investment but also reduce operating costs of the global energy system by more than half. the coming decade compared to current policies.
IEA Executive Director Fatih Birol emphasized the urgency and economic benefits of rapid transitions to clean energy. “The data makes it clear that the faster you make the transition to clean energy, the more cost-effective this is for governments, companies and households,” Birol said. “If policymakers and industry leaders delay action and spending today, we will all have to pay more tomorrow.”
The report underlines the cost competitiveness of renewable energy sources such as solar and wind energy compared to traditional fuels such as coal, natural gas and oil. However, it is also noted that substantial upfront investments are needed, especially in developing and emerging economies, where clean energy investments are often hampered by real or perceived risks.
Despite the economic benefits, the report reveals a disparity in global energy subsidies. In 2023, governments worldwide spent approximately $620 billion on fossil fuel subsidies, compared to just $70 billion in support for consumer-oriented clean energy investments.
Furthermore, the IEA report highlights the potential of renewable energy to reduce consumer costs and increase the predictability of energy prices. It suggests that, as electric vehicles and other electric technologies become more common, electricity will surpass oil's role as the primary energy source for consumers by 2035.
