Companies still investing too much in fossil fuels, global energy watchdog says

Illuminem summarizes for you the essential news of the day. Read the full piece on The Guardian or enjoy below:

🗞️ Driving the news: The International Energy Agency (IEA) criticizes fossil fuel companies for investing twice as much in oil and gas as necessary to limit global temperature rise  
• This comes ahead of the COP28 climate talks in Dubai, highlighting the sector's minimal involvement in the clean energy transition

🔭 The context: IEA’s report indicates that these companies currently contribute only 1% to global clean energy investment
• IEA Executive Director Fatih Birol emphasizes the need for the industry to balance its investments between fossil fuels and clean energy, facing a "moment of truth" about its role in the climate crisis

🌍 Why it matters for the planet: According to the IEA, adhering to current national energy and climate pledges could see a 45% drop in fossil fuel demand by 2050  
• If efforts intensify to keep global heating within 1.5°C, fossil fuel usage could decline by over 75% by 2050

⏭️ What's next: The IEA urges a significant shift in investment strategies, proposing that at least 50% of capital should be dedicated to clean energy technologies
• This change is crucial as public criticism of the fossil fuel industry’s role in climate change grows

💬 One quote: "Continuing with business as usual is neither socially nor environmentally responsible," Fatih Birol stresses the importance of industry transformation

📈 One stat: Oil and gas companies currently spend about 2.5% of their capital on clean energy technologies, in contrast to 97.5% on traditional area

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