Targeted Public Spending, Policy Action will Bring Immediate Jobs, Boost GDP: Report

Governments can align immediate economic stimulus needs with medium to long-term decarbonisation and sustainable development objectives by targeting policy measures and public spending towards the energy transformation said the International Renewable Energy Agency (IRENA) in its newly published report.

The intergovernmental agency, IRENA, in its report “Post-COVID recovery: An agenda for resilience, development and equality” outlines immediate stimulus action for the next three years i.e. 2021-2023 as well as measures for a mid-term 2030 recovery perspective over the next decade.

IRENA in its report has offered practical insights and recommendations for governments as they drive investment and policy actions for post-COVID-19 economies.

According to the report, on an annual basis, scaling-up public and private energy spending to USD 4.5 trillion per year would boost the world economy by an additional 1.3 per cent, creating 19 million additional energy transition-related jobs by 2030.

Notably, jobs in the renewables alone could triple to 30 million by 2030, as predicted by the agency.

It further stated that every million dollars (USD) invested in renewables would create 3 times more jobs than in fossil fuels.

Commenting on the future prospects for renewables, Francesco La Camera, Director-General of IRENA, said that “Renewables have proven to be the most resilient energy sources throughout the current crisis.”

La Camera further suggested “this evidence should allow governments to take immediate investment decisions and policy responses to overcome the crisis. With today’s recovery plan for governments, IRENA uses its global mandate on energy transitions to inform decision-making at this critical time, while staying on course toward a fully decarbonised system by 2050.”

Here’re the few recommendations from the report including – doubling of annual transition investments to USD 2 trillion over the next 3 years will provide an effective stimulus and can leverage private sector investments by a factor 3-4. Reforming fossil fuel prices, retiring fossil fuel assets, driving green financing and bailouts, and strategically investing in energy transition must be immediate priorities.

La Camera further said “now is the time to invest in a better future. Government policies and investment choices can create the necessary momentum to enact systemic change and deliver the energy transformation away from fossil fuels. Driving a structural shift towards cleaner energy systems and more resilient economies and societies is more urgent than ever. Most of all, this is a global agenda, and we must leave no one behind.”

Earlier also, IRENA said that Advancing the renewable-based energy transformation is an opportunity to meet international climate goals while boosting economic growth, creating millions of jobs and improving human welfare by 2050.