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Going green at 50? IEA environment pivot discussed at anniversary meeting

Energy ministers, oil executives and green investors collected this week to mark a. halfcentury given that the development of the International Energy. Company and to examine its brand-new role as the world's shepherd toward. a green future from a nonrenewable fuel source past.

The industrialised world's energy watchdog has actually shifted its. concentrate on traditional oil and gas supply security to championing. renewables and climate action-- and for some at the event,. this undermines its function as an impartial energy authority.

The green pivot aligns with the environment policy of the. company's top monetary backer, the U.S.

Top OPEC+ oil manufacturers, global oil company. executives and some analysts have, nevertheless, questioned the IEA's. recent policy recommendations and its analysis of the oil. market data it gathers from its 31 member nations.

That was activated by a questionable 2021 IEA report in. which the agency stated there must be no investment in new oil,. gas and coal tasks if the world was severe about conference. climate targets.

Stuffed over two days into the historic Chateau de la Muette. in Paris-- on grounds where Marie Antoinette as soon as walked freely. amongst her individuals-- some attendees praised the architect of the. IEA's green pivot, Fatih Birol.

Thanks to the really remarkable job Fatih has been. doing, the IEA is now probably the primary arbiter ... with. respect to our policies, said outbound U.S. Special. Presidential Envoy for Climate John Kerry.

Because his 2015 visit, Birol-- who when worked at the. Organization of the Petroleum Exporting Countries-- has piloted. the revamp in which the IEA's firm situations now forecast oil,. gas, and coal need to peak by 2030.

The turn-around in his message was speedy.

As just recently as 2017, Birol advised a Houston conference hall. loaded with U.S. shale oil executives to invest, invest, invest to. extract 670 billion barrels of brand-new oil by 2040.

By 2021, nevertheless, Birol stunned the energy world when he. said if federal governments are severe about the climate crisis, there. can be no brand-new investments in coal, gas and oil, from now-- from. this year.

Birol's change in message coincided with the modification in U.S. federal government to President Joe Biden's environment agenda from previous. President Donald Trump's pro-fossil fuel policies. If Trump wins. the U.S. presidential election this year, Birol and the IEA may. face pressure from its top backer to change the message.

Trump has actually pledged to slash funding to global. companies and promote nonrenewable fuel source output ought to he win the. November election, moves seen by the firm as a prospective danger.

Birol publicly batted away any idea that the IEA's focus. would change if the U.S. administration did.

The economic and technology dynamics, the policy dynamics. are really strong, I believe the tidy energy transition will. continue to move quick whoever the next president is, the IEA. chief stated.

Few of the IEA's member governments publicly share the view. that fossil fuel need will quickly peak or have enacted policies. to slow investment in brand-new projects.

Russia's 2022 invasion of Ukraine marked a setback for the. energy transition and environment objectives. Many Western federal governments. have promoted more financial investment in fossil fuels, not less, to. boost output and cut reliance on Russia.

EMBARGO TO ENVIRONMENT

Established in 1974 after the Arab oil embargo triggered worldwide. energy rates to soar and plunged lots of nations into economic downturn,. the IEA focused on stockpiling oil products to fend off future. emergencies.

It now relates to the use of fossil fuels and the greenhouse. gases they produce as the world's brand-new energy crisis.

IEA member governments keep their own energy analysis. teams but aim to IEA recommendations to direct policy. Some. professionals state the blurred line in between objective data analysis and. pro-renewable policy suggestions is a problem.

IEA forecasts now appear to be too optimistic with regard. to how fast the shift far from hydrocarbons can take. location, said John E. Paisie, president of Stratas Advisors LLC. in Houston.

The projections, however, are still helpful because (they). supply a view of the future that highlights the capacity. result of decarbonization policies.

The IEA forecast that worldwide need is nearing a peak as. electric automobile fleets grow quickly is not shared by some oil. majors, experts and OPEC producers.

OPEC Secretary General Haitham Al Ghais this week took aim. at the IEA's forecast: Oil and gas will continue to be a significant. component of the energy pie, that will continue to grow in. future years after 2045.

OPEC stopped using IEA data in its assessments of oil. markets in 2022.

TotalEnergies CEO Patrick Pouyanne also said we. should exit debate about peak oil need, be major, and. invest, before heading to the IEA event.

Pushing for a halt in investment in brand-new nonrenewable fuel source projects. might also undermine the IEA's own clean energy initiatives by. motivating using dirtier fuels in the establishing world,. said Brenda Shaffer, senior fellow at the Atlantic Council's. Global Energy Center.

If you don't allow access to fossil fuels, you get dung. and wood burning, she said. That's the reality, and that's. more polluting, more climate-altering and more harmful to human. health..

(source: Reuters)