Fatih Birol, the head of the International Energy Agency, told the Financial Times that if the world is to fulfil its Paris Agreement commitments, investments in low-carbon energy must triple.

Birol observed that planned investments in oil and gas production are now aligned with Paris Agreement climate targets, which he describes as “a rare piece of good news” for an industry that has been accused of being the single cause of harmful climate change.

“There is a gross mismatch, and the longer this mismatch persists the greater the risk of further sharp price swings and increased volatility in the future,” he said.

He reiterated that renewable energy was not to blame for Europe’s energy shortage and that the problem should not deter European leaders from continuing on their energy transition path. The issue, he claims, was caused by several circumstances, including an uneven recovery from the pandemic, gas supply interruptions, and weather.

He said: “There is an inaccurate campaign that’s saying we’re seeing the first crisis caused by clean energy and that this can become a barrier for further policy action to address climate change. But this is definitely not true.”

Birol stated that the IEA anticipates gas consumption to peak shortly after 2025. Oil demand will peak in a little more than five years, even if world governments make no additional commitments on climate change. According to the IEA, oil demand will peak at 97 million bpd, however, the IEA had predicted that demand would hit 100.6 million bpd next year in a short-term prediction, which is a significant increase from the previous high point.

Global energy investments will reach $1.9 trillion this year, with $370 billion going to low-carbon power generation.