IEA warns cuts to renewables may kill off industry
Governments need to keep backing renewables even in more austere times, according to the International Energy Agency (ISE).
Launching the 2011 edition of the World Energy Outlook the ISE said the world is ‘locking itself into an unsustainable energy future.’
The report, which predicts the energy market over the next 25 years, says subsidies will underpin renewables growth and will increase globally from $64bn last year to $250bn in 2035.
It also points out that current fossil fuel subsides amounted to $409bn in 2010.
IEA chief economist, Fatih Birol, voiced fears that drastic cuts to renewable subsidies would be too much for some technologies to bounce back from.
At a press launch for the new report, he said: “If it takes a big hit the renewables market may not be able to come back from it unlike fossil fuels.”
PIC Marie van der Hoeven speaking this morning
IEA executive director, Marie van der Hoeven, added: “Government’s need to introduce stronger measures drive investment in efficient and low carbon technologies.”