BAKU, Azerbaijan, June 3
By Leman Zeynalova – Trend:
Spending on energy efficiency improvements is set to increase in 2021 by nearly 10 percent, Trend reports with reference to the International Energy Agency (IEA).
“In economies where governments have more fiscal space and are able to borrow at low rates, recovery strategies offer a major opportunity to boost investment in infrastructure, efficiency and clean energy technologies.
In the case of infrastructure, after declining for the fourth consecutive year in 2020, spending on electricity grids is expected to rise in 2021, led by China and Europe. Proposed infrastructure spending in the United States, if approved, would add to this momentum. Spending on energy efficiency improvements is set to increase in 2021 by nearly 10 percent in response to renewed economic growth and initial effects of recovery programs,” reads the IEA report.
However, against a backdrop of relatively low fuel prices, growth is heavily concentrated in markets and sectors with clear government policies, such as the buildings sector in Europe, according to the agency.
“Policies and stimulus spending are spurring projects in new areas such as low-carbon hydrogen and carbon capture utilization and storage (CCUS). Yet despite these encouraging signs, stimulus spending on clean energy technologies is falling well short of what is needed to ensure a sustainable recovery from the Covid-19 crisis. Many developing countries lack the means to pursue expansive recovery strategies, and early signs of inflation in some economies has led to questions about how long the current environment of low interest rates will last.
Even if spending on clean energy is set to rise in 2021 by around 7 percent, financial flows have grown more rapidly than actual capital expenditures. There is a shortage of high-quality clean energy projects. This is compounded by inadequate channels to guide available funds in the right direction and a lack of intermediaries capable of matching surplus capital with the sustainability needs of companies and consumers,” said the IEA.
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