3 Years and $3 Trillion Could Shift the Climate Change Narrative

Plummeting carbon emissions and big government spending—two of the defining narratives of 2020 so far—could create an unprecedented opportunity for the world to meet the goals enshrined in the 2015 Paris climate change agreement, according to the International Energy Agency. With $1 trillion of investment over each of the next three years, global energy-related CO₂ emissions could end up falling in 2023 by 4.5 billion metric tons, or 14% of last year’s total.

So says a special edition of the IEA’s annual World Energy Outlook, released today, which looks at more than 30 individual policies with the potential to both lift the world out of its Covid-19 economic slump and generate climate-safe growth. Together they would create 9 million jobs across a variety of energy-intensive sectors and push global GDP 3.5% higher by 2023 than it would otherwise have been, according to a joint IEA-International Monetary Fund analysis.

Green Recovery

Source: International Energy Agency

“The plan would make 2019 the definitive peak in global emissions, putting them on a path towards achieving long-term climate goals,” the report states.

The IEA is releasing its analysis at a moment when many nations are beginning to consider what the next phase of pandemic stimulus should look like, giving its recommendations unusual urgency. The energy sector has received limited stimulus funding thus far, but according to the report, greater support would further the triple goals of recovery: growth, job creation, and climate-safe development.

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