AFRICA – The International Energy Agency has received a major funding boost from member countries to enable it to significantly scale up its work supporting the transition to clean energy in emerging economies.
The funding increase for the IEA’s Clean Energy Transitions Programme (CETP) was announced at a special event on the side-lines of the 2022 IEA Ministerial Meeting in Paris.
The new funding stream will support efforts to achieve greater clean energy investment in emerging economies and provides a strong endorsement by governments of the IEA’s role in helping the global energy system transition to net-zero emissions.
“To solve the climate crisis, we must take bold and transnational actions to ensure a green and sustainable future,” said Danish Minister for Climate and Energy Dan Jørgensen.
“The CETP is the main vehicle for the IEA to drive global change and clean energy transition towards net zero. To this end, I am thrilled that we are so many supporters and funders of the program.”
Since its creation in 2017, the CETP has established strong cooperation on clean energy with the world’s largest emerging economies including Brazil, China, India, Indonesia, and South Africa.
Drawing on the IEA’s expertise, the CETP provides a range of policy advice, training, and capacity building to help these economies move towards sustainable low-carbon solutions while ensuring energy security and economic opportunities.
“The world needs a massive surge in clean energy investment, especially in emerging economies, to put emissions on a rapid downward trajectory,” said IEA Executive Director Fatih Birol.
“The issue is not a shortage of capital worldwide but ensuring the money finds its way to the countries, sectors, and projects where it is most needed.”
According to IEA analysis, annual capital spending on clean energy in emerging and developing economies needs to expand from less than US$150 billion in 2020 to over US$1 trillion by 2030 if the world is to get on track for reaching net zero emissions by 2050.
The new CETP funding stream of US$22.24 million a year will come from voluntary contributions by 15 IEA member countries and the European Union who confirmed their financial support through 2030 in a new Joint Commitment.
The increased funding will expand the IEA’s development of more tailored and actionable national net-zero roadmaps for emerging economies and enhance efforts to track progress on reducing energy sector emissions.
The CETP is funded by Australia, Belgium, Canada, Denmark, France, Germany, Ireland, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, the United States, and the European Commission.
Among those, Belgium, Ireland, Spain, and the United States are all providing contributions to the program for the first time as part of the new Joint Commitment on funding announced today.
The stepped-up funding follows the COP26 Climate Change Conference in Glasgow, where countries renewed their commitment to mobilize US$100 billion of climate finance a year for developing and emerging economies.
A key focus of the CETP is helping emerging economies strengthen their policy and regulatory frameworks to better attract the clean energy investment they need to advance their transitions.
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