Fatih Birol, head of International Energy Agency, says countries planning expansion are ‘misjudging market trends’
Countries and companies planning to expand their fossil fuel production are taking “very unhealthy and unwise economic risks” as their investments may not be profitable, the world’s foremost energy adviser has warned. Fatih Birol, the executive director of the International Energy Agency (IEA), predicted this week that fossil fuels would peak this decade, a historic turning point for the climate. But despite the likelihood of demand declining, and the threat of climate chaos, many countries and private sector companies are considering new capacity. Birol said: “New large-scale fossil fuel projects not only carry major climate risks, but also business and financial risks for the companies and their investors. “When I talk with the oil companies, both international and national oil companies, some of them are saying that we have been underinvesting in oil and gas. But companies and investors should be very careful about this claim, bearing in mind the demand trajectories we are seeing. It could lead them into taking very unhealthy, unwise economic and climate risks.” […] Birol refused to single out any countries, but several developed and developing economies are planning large expansions of their fossil fuel production, despite their commitments to limiting global temperature rises to 1.5C above pre-industrial levels. The US was this week found to be planning the world’s biggest share of global oil and gas expansion between now and 2050, and the UK government plans scores of new oil and gas licences as the prime minister, Rishi Sunak, vowed to “max out” the North Sea.
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But the $1.4tn of public money the G20 ploughed into fossil fuel projects last year is safe, right? Right??











