IEA (2022), Sustainable Recovery Tracker, IEA, Paris https://www.iea.org/reports/sustainable-recovery-tracker
- Governments worldwide have earmarked over USD 710 billion in sustainable recovery measures as of end-March 2022, according to the latest IEA estimates. This is the largest ever clean energy recovery effort, 40% higher than what was spent after the global financial crisis.
- Governments in advanced economies have earmarked USD 370 billion worth of clean energy measures to be spent by 2023, which is consistent with the short term spending required in the IEA Net Zero Emissions by 2050 Scenario.
- But the latest figures confirm a widening gap between advanced and emerging and developing economies (EMDEs), the former dedicating ten times more fiscal resources to sustainable recovery measures than the latter.
- Government spending on sustainable recovery measures in EMDEs is less than a quarter (around USD 52 billion by 2023) of the short-term investment needed to reach mid-century net zero emission goals. This spending is likely to remain low, as these countries focus their limited fiscal leeway on keeping food and fuel affordable in the coming months.
- Even advanced economies risk not delivering all their ambitious sustainable recovery packages within the designated timeframes. Some governments have not yet established adequate programmes to adequately channel funding. Consumer-oriented supports (e.g. retrofit subsidies and/or tax credits, heat pump installation incentives) are not reaching enough people, hindered by lack of information and administrative burdens. In addition, post-lockdown supply chain bottlenecks, labour shortages and price spikes are slowing project development and in some cases jeopardising completion.
- Since the start of the winter heating season, governments worldwide have announced an additional USD 270 billion in short-term affordability measures to protect businesses and households from spiking gas and electricity prices. Russia’s invasion of Ukraine has further thrust global energy markets into uncertainty.
- The latest update of IEA’s Sustainable Recovery Tracker now includes over 1000 policies and is fully available online.