Governments should prevent the development and licensing of any new oil and gas fields if they wish to align with the objectives of the Paris Agreement, said a new report by the International Institute for Sustainable Development (IISD). Developing any fields beyond those in operation or under development would “pose substantial risks” of either not meeting the 1.5°C limit for climate change or creating stranded assets, said the think tank. It also called for “more and better support” by governments for wind and solar deployment, by establishing “enabling environments” to redirect public and private capital flows toward the clean energy transition. IISD said an annual investment gap for wind and solar of US$450 billion until 2030 could be filled by redirecting the US$570 billion forecast to be spent every year in new oil and gas development and exploration over the same period. It added that there was “no room” for Europe to add to its fossil fuel import infrastructure on a 1.5°C-aligned pathway and that existing import capacity could meet the gas demand for Europe in the medium- and longer-term.
Good news: There is no shortage of capital for clean #EnergyTransition.
BUT right now, it’s going to the wrong places. 🚫
— IISD Energy (@IISD_Energy) October 24, 2022