IEA calls on oil companies to devote half investments to clean energy by 2030

International Energy Agency (IEA) sees that oil producers need to put 50% of their capital expenditures towards clean energy projects by 2030 to align with the global climate targets.

Oil and gas companies currently account for just 1% of clean energy investment globally. In 2022, they invested around $20 billion in clean energy, or roughly 2.5% of their total capital spending, which means that they need a strategic transition by 2030, the agency added in its report.

Fatih Birol, executive director of the agency, said the oil and gas industry is facing “a moment of truth” at the United Nations Climate Change Conference (COP28) in Dubai, which kicks off on Nov. 30, the Financial Times reported.

Birol added that with the world suffering the impacts of a worsening climate crisis, continuing with business as usual is neither socially nor environmentally responsible.

He also noted that oil companies have been slow to invest in clean energy because they don't see how they will make money from it, explaining that fossil fuel revenues are less stable and only slightly higher than clean energy.

Source: Argaam