BAKU, Azerbaijan, June 2
By Leman Zeynalova – Trend:
The share of capital investment by the oil and gas industry going to clean energy investments could rise to more than 4 percent in 2021, Trend reports with reference to the International Energy Agency (IEA).
“Oil and gas companies are coming under increasing pressure to adapt their investment strategies to the needs of clean energy transitions. This takes different forms, including commitments to reduce emissions resulting from oil and gas supply or to invest into new areas such as clean electricity or sustainable fuels. In 2020, clean energy investments by the oil and gas industry accounted for only around 1 percent of total capital expenditure. However, our tracking suggests that commitments to diversify investment, led by large European companies, are already starting to have an impact. If performance so far in 2021 is maintained for the full year, the share of capital investment by the oil and gas industry going to clean energy investments could rise to more than 4 percent in 2021. Project financing for offshore wind – closely aligned with industry strengths – was considerably higher in the first quarter of 2021 than in the whole of 2020,” reads the latest IEA report.
The report shows that the signals for investment in low-carbon energy innovation in early 2021 are broadly positive.
“Major economies have highlighted innovation and increased funding as part of their drive to net-zero emissions. In total, we estimate that through 2030, over USD 50 billion of public funds could be available for major demonstration projects for large-scale low-carbon energy technologies, including CCUS and other ways to mitigate industrial emissions. Another source of optimism is the observed resilience in 2020 of early-stage venture capital funding for lowcarbon energy technologies.
In 2021, annual global energy investment is set to rise to USD 1.9 trillion, rebounding nearly 10% from 2020 and bringing the total volume of investment back towards pre-crisis levels. However, the composition has shifted towards power and end-use sectors – and away from traditional fuel production,” said the IEA.
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