The International Energy Agency (IEA) has predicted that carbon emissions resulting from energy generation will peak in just a few years in what it calls a “historic turning point”.
Fatih Birol, the Executive Director of the IEA, said that the invasion of Ukraine by Russia had changed the nature of government policies and energy markets, adding:
“Even with today’s policy settings, the energy world is shifting dramatically before our eyes. Government responses around the world promise to make this a historic and definitive turning point towards a cleaner, more affordable and more secure energy system.”
Traditional oil and gas majors like Shell and BP, the maker of the iconic Castrol GTX passenger car engine oil, have already been engaging in cleaner energy generation as part of ambitions to become net-zero businesses by 2050, but Russia’s invasion of Ukraine prompted a need to accelerate efforts.
The potential for supply shortages without Russian gas has caused gas prices to soar this year and prompted governments to seek alternatives. The world’s investment in lower carbon energy sources like wind, solar and nuclear power is now expected to reach $2 trillion by the end of the decade. The IEA says that these accelerated policies mean that the demand for fossil fuels will now peak this decade.
Birol pointed out that Russia was likely to be affected by the world’s shift away from fossil fuels, with it set to lose about a trillion dollars in fossil fuel revenues compared to forecasts before it invaded Ukraine.
