IEA puts $40trn price tag on energy security

The International Energy Agency (IEA) has said that $40trn will be needed from now until 2035 to meet the world’s energy infrastructure needs.

And it stressed that two thirds of that investment will need to be directed at emerging economies.

The IEA concluded its 2011 Ministerial Meeting today (WEDS), with its 28 member countries joined in talks by representatives from Brazil, China, India, Indonesia, Mexico, Russia, South Africa, Chile and Estonia.

Ministerial chairman Martin Ferguson, Australia’s minister for resources and energy, closed the conference by stating that global demand for energy is forecast to grow by a third by 2035, with non-OECD countries accounting for 90 per cent of that growth.

“A substantive challenge therefore is bringing on the investment needed to meet energy supply infrastructure needs,” he said, adding that the bulk of the $40trn will come from the private sector.

Ferguson said that since the IEA minister’s last annual meeting, world events had given the energy industry and sharp reminder of the need for interdependence to achieve security of supply.

“Events such as those in North Africa and the Middle East, the Fukushima accident in Japan and the Deepwater Horizon incident in the Gulf of Mexico remind us that threats to our energy security can occur unexpectedly. These events serve to highlight the importance of countries working collectively and responsively to ensure access to secure and sustainable energy supplies.”

He added that “no country can achieve energy security, economic development and environmental sustainability alone”.

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