Daily Management Review

IEA Needs Bolder 'Climate Stance'


“Bold, not incremental, action is required”: in an open letter to IEA.

The Head of IEA, the International Energy Agency, Fatih Birol had to face “renewed calls” for taking “bolder stance on climate change” as the investors were concerned over the ocmpany’s report which showed the enabling of “damaging levels of investment in fossil fuels”.
According to Reuters report:
“In an open letter here investor groups said an IEA report here on options for green economic recoveries from the coronavirus pandemic, due out in June, should be aligned with the 2015 Paris accord goal of capping the rise in global temperatures at 1.5C”.
The letter had over sixty signatories like the “Institutional Investors Group on Climate Change”, the member of which have “30 trillion euros” under asset management along with “scientists and advocacy group Oil Change International”. Furthermore, the above mentioned letter stated:
“Bold, not incremental, action is required”.
IEA is based out of Paris, which showed appreciation towards the feed back and agrees to consider the suggestions mentioned in the letter. Moreover, it mentioned it has received recognition for leading the way in urging government to move towards “economic stimulus packages” with their heart in clean energy. In the words of the IEA:
“We have backed up that call with a wide range of analysis, policy recommendations and high-level events with government ministers, CEOs, leading investors and thought leaders”.
In fact, last year critics has increased pressure on Biros whereby claiming that its function become a justifying grounds for other “oil, gas and coal companies” to justify further investment in the same line by keeping “World Energy Outlook (WEO) annual report” report of IEA as the base. Nevertheless, Reuters added:
“Birol has dismissed the criticism, saying the WEO helps governments understand the potential climate implications of their energy policies, and downplaying its influence on investment decisions”.
On the other hands, campaigners are pushing Birol to revamp the “WEO to chart a more reliable 1.5C path”. The way world is functioning it will heat up over twice more than desired whereby turning the “planet increasingly uninhabitable”, claims scientists.