IEA wants to spur energy investment

Investment in renewable energy is down and achieving oil prices that spur “green-growth” should be a goal for December’s Copenhagen conference, the chief economist of the International Energy Agency said on Monday.

The global financial crisis, falling oil demand and a slide in barrel prices have prompted many investors in the industry to scale back spending and delay projects in both outright energy investment as well as in renewable projects.
Birol, who in early May warned the Organization of the Petroleum Exporting Countries that higher oil prices would slow global economic recovery, called for prices to be balanced in favor of investment and sustainability.

“A good indication if prices are high enough is that they then can give a certain impetus to renewable energy investment,” Birol said.

“But at the same time, if they are far too high, it is bad for economic growth and would lessen the affordability for countries, persons and industries to make those investments.”

Reuters