The International Energy Agency (IEA) in collaboration with the International Monetary Fund (IMF) published a Sustainable Recovery Plan on June 18th, 2020 that suggests a $3-trillion stimulus package for transitioning globally towards clean energy over a course of three years. The plan focusses on stimulus measures for six sectors that the EIA identifies as fundamental for a clean energy transition: fuels, electricity, transport, buildings, industry and emerging low-carbon technologies. It promotes a range of investments into technologies widely considered as clean such as renewable energy, energy efficiency and electric vehicles. Moreover, the recovery plan suggests investments into technologies that can be considered low-carbon but are controversial because of environmental and safety concerns, such as hydrogen and nuclear.
The plan also points to much needed consumer fossil fuel subsidy reforms that could yield 700 Mt CO2 reductions by 2030. However, the EIA misses to suggest reforms for fossil fuel production and does not point to options for increasing taxes on fossil fuels to enhance as well as finance a clean energy transition.