STUDY ASKS $10 TRILLION FOR CLIMATE
October 6, 2009
An investment of $10 trillion in renewable energy and other carbon-abatement technology will be necessary over the next two decades to limit the rise in the Earth's temperature, the International Energy Agency (IEA) warns in a new report.
The IEA, energy adviser to the world's richest nations, urges more-aggressive reductions in carbon emissions than what many nations are currently planning. In the report, to be released today:
- The IEA calls for investment -- in clean-energy initiatives such as solar power, new nuclear plants and other measures -- of $500 billion a year over the next 20 years.
- That is 37 percent more investment than what the IEA estimated was necessary just a year ago.
- Some analysts put the current level of investment in clean energy at around $100 billion a year.
The additional investment called for could be particularly expensive for consumers in developed nations such as Germany and the United States which would likely face higher costs to fill up their vehicles and keep their lights on.
The IEA also says sales of vehicles powered by the internal combustion engine will need to fall from around 95 percent of the world's total purchases today to 40 percent in 2030; electric and hybrid vehicles would need to account for the majority of new vehicle sales over the next 20 years.
Source: Spencer Swartz and Selina Williams, "Study Asks $10 Trillion for Climate," Wall Street Journal, October 6, 2009.
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