New IEA Report Critical of Oil Industry's Inadequate Investment in Clean Energy
The International Energy Agency (IEA) released a report on Sunday that shows international oil & gas companies, including those controlled by governments, have spent less than 1% of their annual capital budgets since 2015 on alternative clean energy technologies and other climate friendly initiatives. The report by the inter-governmental research organization, which is also due to be presented at the World Economic Forum in Davos later this week, warns that the oil industry faces a major public and regulatory backlash should it continue to put profitability considerations ahead of climate concerns. In an interview following the release of the report, IEA executive director Fatih Birol stated that as of today, around 15% of global energy-related greenhouse gas emissions come from the process of extracting, processing and transporting oil and gas to end-consumers. According to the report, although some major companies have spent up to 5% of their capital budgets towards clean energy initiatives, the sector as a whole needs to play a more active and meaningful role towards shrinking its own carbon footprint and tackling global climate change.