World Energy Outlook Report 2021

• International Energy Agency (IEA) has published their World Energy Outlook 2021 a month early to coincide with the run-up to COP26.
• The 2021 report concludes that the energy component of the net zero transition has begun, but more action is needed to reach net zero by 2050.
• The World Energy Outlook (WEO) is the IEA's annual flagship report on trends in energy supply and demand and their implications for environmental protection, energy security and economic development.

Key findings of Report

• The 2021 WEO has found that net zero commitments already pledged by over 50 countries would reduce the output of greenhouse gas emissions by 40% to 2050 if implemented in full and on time.
• It notes however that more action needs to be taken by governments to fully deliver on their pledges.
• The measures actually implemented and stated policies of governments, would in the IEA scenarios, result in a gradual decline in the power sector's emissions.
• However, this would be offset by emissions from industries such as cement and steel and from heavy-duty transport.

Recommendations by Report

• WEO identifies four key measures that could be used to close the gap between current emission and target:

1. A massive clean electrification programme, including doubling of solar photovoltaic and wind deployment above existing pledges, a rapid phase-out of coal and push for use for electricity for transport and heating.
2. A relentless focus on energy efficiency, and measures to counterbalance energy demand through behavioural change and materials efficiency.
3. A drive to cut methane emissions from fossil fuel operations.
4. More investment in clean energy innovation.

• The report notes that more than 40% of the actions required would result in greater cost savings overall for consumers than what would result under existing pledges.
• WEO estimates that the cost of clean energy projects and infrastructure needed for a 1.5 degree path would be nearly USD4 trillion per year for the rest of the decade, primarily from the private sector.