The International Energy Agency marginalizes key climate goals in its research, according to an open letter from dozens of investors, business leaders, researchers and climate policy advocates. The Paris-based organization is largely funded by rich countries and advises nations on energy policy. It publishes an annual report called the World Energy Outlook, which projects how the global energy system is likely to look in years to come. The scenarios it uses have become the bedrock of energy policy for governments around the world and provide key insights for global investors to check whether they are putting money in the right places.
Founded in 1974, the IEA’s role has changed a lot in the decades since, as the importance of energy sources that play a crucial role in geopolitics has waxed and waned. In the 21st century, it has had to adapt its research to take into consideration how governments might respond if they took climate change seriously.
“Because it’s a multilateral institution, it comes with a certain level of perceived objectivity and professionalism,” said Natasha Landell-Mills, a signatory and head of stewardship at investment management firm Sarasin & Partners.
If the world were to warm just a few tenths of a degree further, the economic damage wrought would be in the hundreds of billions of dollars. It would bring the forced migration of millions, and the extinction of thousands of more species, according to an influential 2018 report from the United Nations. The world has warmed 1°C since 1880, and the pace of warming has accelerated in the last three decades.
The latest missive comes as the IEA is readying a special edition of its flagship WEO focused on policies that can promote clean-economy job growth. It will help governments choose the right energy policies as they spend billions or trillions of dollars in stimulus to prop up economies decimated by the pandemic.