Page 9 - AfrElec Week 22 2021
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AfrElec COMMENTARY AfrElec
IEA analysis last year highlighted that only that growth in these capital expenditures has
around 1% of capital spending by the industry lagged changes in financial markets, in part due
was going to clean energy investments. to a shortage of high-quality clean energy invest-
But project tracking to date in 2021 suggests ment opportunities and appropriate channels for
that this could rise to 4% this year for the indus- allocating capital into projects.
try as a whole, and well above 10% for some of The anticipated $750bn to be spent on clean
the leading European companies. energy technologies and efficiency in 2021
The influence of recovery packages and is encouraging but remains far below what’s
new climate policy measures comes through required to put the energy system on a sustain-
in expectations of rising expenditure in 2021 able path.
on renewable power, electricity grids, energy Clean energy investment would need to triple
efficiency – notably in the buildings sector in in the 2020s to put the world on track to reach
Europe – and emerging technologies such as net-zero emissions by 2050, thereby keeping the
carbon capture, utilisation and storage (CCUS) door open for a 1.5 °C stabilisation of the rise in
and low-carbon hydrogen. global temperatures.
The US may provide further momentum if “As set out in detail in our recent Roadmap
the infrastructure plan proposed by the admin- to Net Zero by 2050, governments need to go
istration of President Joe Biden is enacted. beyond making pledges to cut emissions and
Financial markets are also providing encour- take concrete steps to accelerate investments in
aging signs for clean energy investment. Sustain- market-ready clean energy solutions and pro-
able debt issuance reached a record level in 2020, mote innovation in early-stage technologies,”
and renewable power companies have outper- said Dr Birol.
formed fossil fuel companies on international The gap between today’s investment trends
equity markets. and the needs of climate-driven scenarios is par-
But even though spending on clean energy is ticularly large in emerging market and develop-
set to rise in 2021 by around 7%, the report notes ing economies.
Week 22 03•June•2021 www. NEWSBASE .com P9
