Birol said the Covid crisis would “leave scars for many years to come”, particularly for the world’s poorest people, echoing warnings from the World Bank. Rising poverty levels may have made basic electricity services unaffordable for more than 110 million people, reversing several years of progress in access to electricity, the IEA said.
Global annual investment in clean energy needs to increase from $300bn (£230bn) to $1.6tn by 2030 – equivalent to total energy investment in 2020 – if it is to have any hope of tackling the climate crisis, Birol said.
The rapid rise of solar power and wind power, a key focus for the UK government, meant renewable energy sources will account for an increasing proportion of the world’s new energy needs. The IEA forecasted that solar power will increase by an average of 13% a year between 2020 and 2030.
“Solar is the new king of global electricity markets,” Birol said, with growth across the world and cheap financing making solar power in some cases among the cheapest sources of electricity in history.
Yet while the pandemic may have accelerated some improvements in the energy system, consumers in richer countries becoming more environmentally conscious is not enough, the IEA said.
“The Londoners or Parisians or New Yorkers eating less pineapple from Costa Rica may have an impact, but the main impact is tens of millions of people in India, Pakistan, Bangladesh, and Congo will buy their first refrigerators and air conditioners,” Birol said.
He also highlighted an important blind spot in the global climate debate about the need to improve existing energy infrastructure, as well as introduce new technology. Using the energy infrastructure currently in existence as before would lock in global temperature rises of 1.65°C, missing the 1.5°C goal of the 2015 Paris agreement, the IEA found.