According to the economist Faith Birol from the International Energy Agency (IEA) the renewable energy industry received $57 billion in subsidies worldwide in year 2009. He also said to the reporters that fossil fuels received $312 billion in the same year. Birol expects that the financial stimulation to the green energy will double by the year 2015, however, he also noted that the renewable energy industry may feel consequences of many countries trying to reduce their budget deficit.
The IEA economist has stated that green energy industry will face great difficulties without government financial support, especially in areas with cheap gas such as the United States where natural gas prices dropped to a 13-month low.
The newly published IEA’s World Energy Outlook forecasts a $5.7 trillion investment in electricity production from renewable sources such as solar and wind power over the following 25 years. The agency also emphasizes the benefits of government financial stimulation to the renewable energy in the field of economy, environment and energy security.
The IEA’s estimation of government financial support to the renewable energy industry in various forms is very similar to the Bloomberg New Energy Finance from July 2009 that said that the green energy received a support between $43 billion and $46 billion. The IEA also estimates that $37 billion went to generation of green electricity, while the remaining $20 billion went to biofuel production.
The IAE also criticized the 2009 climate change conference in Copenhagen underlying that the conference’s goals are inadequate to reduce the increase of global temperature to 3.6 F (2 C) which is crucial to prevent the dangerous global warming. The agency also expressed concerns about the effects of reduction or elimination of subsidiaries for renewable energy on the world’s energy system as well as energy security and reduction of emissions.