IEA report proposes a $3 trillion energy sector recovery plan to spur growth, cut emissions

The plan would require a global investment of $1 trillion/year in the 2021-2023 period.

A new special report from the International Energy Agency (IEA) and International Monetary Fund (IMF) sets out a sustainable recovery plan to quickly create jobs, boost economic growth, and cut emissions.

What’s the Plan about?

The plan would require a $1tn annual investment over the next three years, Reuters reports, covering 30 energy policy measures across electricity, transport, buildings, fuels, and emerging low-carbon technologies.

The plan sets out policies and targeted investments for each key sector, including measures designed to accelerate the deployment of low-carbon electricity sources such as new wind and solar, and increase the spread of cleaner transportation such as more efficient and electric vehicles and high speed rail.

Global Impacts of the Plan

The IEA said that the plan could boost global economic growth by an average of 1.1 percentage points a year over 2021 to 2023.

It could also save or create around 9 million jobs a year and reduce global energy-related greenhouse gas emissions by 4.5bn tonnes by the end of the plan.

The plan would stop emissions from rebounding as the world recovers from the coronavirus pandemic and instead lock in a structural decline.

“Policy makers are having to make hugely consequential decisions in a very short space of time as they draw up stimulus packages,” said IEA Executive Director Fatih Birol. “The plan is not intended to tell governments what they must do. It seeks to show them what they can do,” he added.

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