The IEA has produced many policies which all aim to improve energy security and ensure that the environment and societies are not harmed from the energy sector. The Net Zero by 2050: A Roadmap for the Global Energy Sector mainly focuses on the transition towards more renewable energy in the hopes of reaching net zero emissions by 2050. The Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies initiative focuses on economies where much of the world’s future energy demand is expected to come from and how to reduce financial risks so clean energy can be implemented efficiently. Finally, the IEA’s Critical Minerals and Clean Energy Policy identifies minerals as the pillar towards clean energy transition. It aims to prevent supply chain vulnerability, and ensure reliable, affordable and sustainable supply of minerals needed for clean transition technologies.
The following section discusses the implementation and purpose of each policy.
Net Zero by 2050: A Roadmap for the Global Energy Sector
The Net Zero by 2050: A Roadmap for the Global Energy Sector was launched by the IEA under Fatih Birol’s leadership in 2021. The initiative functions as a framework for the countries which choose to apply it. Net Zero by 2050 outlines the plan for how the global energy sector can reach net zero carbon dioxide emission by 2050, while maintaining energy security and access.
The roadmap’s broader aim is to provide a realistic and actionable plan for countries to keep within the 1.5°C target of the Paris Agreement. To avoid exceeding this threshold, the IEA sees it imperative to promote the global energy transition towards more renewable energy.
Net Zero by 2050 provides actors such as governments and investors with a detailed pathway to reduce emissions to be able to achieve broader climate goals such as the Paris Agreement. It contains over 400 milestones, including “no investments in new fossil fuel supply projects”, “no further final investment decisions for new unabated coal plants”, and “no sales of new internal combustion engine passenger cars” by 2035. These are in turn part of a broader milestone to have reached net zero emissions in the global electricity sector before 2040.
Through the roadmap, the IEA also highlights the importance of accelerating innovation within the energy sector, as this is crucial for the transition. This push for innovation together with the immediate effective use of all renewable energy technologies, would support further objectives of the framework such as: the “annual additions of solar photovoltaic (PV) to reach 630 gigawatts by 2030, and those of wind power to reach 390 gigawatts”. Achieving this would result in an approximated increase of energy generation by 4% annually through 2030.
Being an international organisation, the IEA designed a global framework, applicable to all member countries. It gives the countries a reference point from which they can create national climate, energy, and investment strategies.
The initiative’s aim to transform energy systems is balanced with the overarching goal of reaching net zero emissions by 2050 and maintaining the Paris Agreement. Energy security and affordability are at the forefront of the initiative, as well as for the countries choosing to adopt it. Implementation varies due to differences in financial and technological resources for states.
The IEA highlights that developing countries which might find implementing the roadmap more challenging due to financial or technological constraints, should receive support in these areas. The policy also states that it is imperative that nobody is left behind, and that the “transition to net zero is for and about people”.
Furthermore, the roadmap is closely connected to the environmental challenges previously discussed in this report. First, global warming and food security are addressed through decreasing greenhouse-gas emissions since these are a main cause. Reducing emissions is crucial for limiting further warming and to protect the food systems which are being harmed by the increasing temperatures.
Second, dependence on fossil fuels is directly targeted through the promoted transition towards renewable energy in the initiative, as this is key to achieving net zero emissions by 2050. As fossil fuels still account for approximately 80% of global energy consumption, the Net zero by 2050 initiative strives to reduce this number significantly, thereby also reducing dependence.
Thirdly, the climate crisis seen in Europe through it being the fastest warming continent results in extreme weather events such as heatwaves and droughts. In turn, these threaten economic stability, energy systems, and welfare. Since a majority of the IEA member countries are also located in this continent, The roadmap provides clear guidance for these countries on how to aid in the climate crisis which directly affects them.
The Net Zero by 2050 framework clearly outlines strategies and goals to achieve the transition towards renewable energy sources. Dependence on fossil fuels is something the IEA actively tries to move away from with the roadmap, in hopes of reducing emissions to combat climate change.
Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies
Published jointly by the IEA under Fatih Birol’s leadership and the International Finance Corporation (IFC) in 2023, the Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies initiative focuses on increasing the amount of private capital flowing into clean energy projects in emerging and developing economies (EMDEs).
The report argues that how these countries meet their growing energy demand will play a major role in determining future global climate outcomes. EMDEs are expected to account for much of future energy demand growth due to rising populations, urbanisation and economic development. Without a large increase in clean energy investment, a large share of this growing demand will be met by fossil fuels, making global climate targets harder to achieve. While clean energy technologies are becoming cheaper and more accessible, investment levels remain insufficient in most developing economies.
The report estimates that annual clean energy investment in EMDEs will need to increase from approximately United States dollars (USD) 770 billion in 2022 to between USD 2.2 trillion and USD 2.8 trillion per year by the early 2030s in order to align with global climate targets, including limiting warming to 1.5°C under the Paris Agreement, as well as broader Sustainable Development Goals.
A key argument of the report is that public funding alone will not be enough to finance this transition. At present, public institutions provide around half of clean energy finance in many developing economies. However, the report estimates that around 60% of future clean energy financing outside of China will need to come from the private sector. This means private finance would need to increase from approximately USD 135 billion today to between USD 900 billion and USD 1.1 trillion annually by the early 2030s.
This policy therefore focuses on creating the conditions needed to attract private investors. This reflects a wider problem identified in the academic literature which is how many developing countries face a “climate investment trap”. This is where they require significant clean energy investment but are viewed by investors as high risk markets which leads to a vicious circle with increases in borrowing costs, discourages investments and leaves countries dependent on older, higher emitting energy systems. The IEA-IFC report attempts to address this problem by providing solutions to reduce risk and improve investment conditions so private capital can flow more easily into clean energy projects.
To address these challenges, the report proposes action on four main areas. First governments should improve regulatory frameworks and strengthen energy sector institutions. Second, concessional finance should be expanded to reduce investment risks and attract private capital. The report estimates that between USD 80 and 100 billion of concessional finance will be required annually by the early 2030s to mobilise private investment at the scale needed. Third, financial instruments such as green bonds, sustainability linked loans and project aggregation platforms should be further developed. Finally domestic financial markets should be strengthened so that more local capital can be invested in clean energy projects.
Unlike many climate policies, this initiative is not designed for a specific country. Instead, it is a joint international framework developed by the IEA and IFC that can be adapted by governments across emerging and developing economies. The report recognises that countries face different challenges depending on their level of development, energy systems and financial markets. However, the overall objective remains the same which is increasing private investment in clean energy and reducing the barriers that currently discourage investors.
This initiative directly addresses the three climatic challenges identified. Its primary focus on emerging and developing economies is particularly important because many of these countries have large agricultural sectors and are among the most vulnerable to climate change. By increasing investment in clean energy, it helps reduce greenhouse gas emissions, supporting efforts to limit the impacts of global warming on agriculture, food security and the Sustainable Development Goals. It also supports the transition away from fossil fuels by making renewable energy projects more financially viable and reducing long-term dependence on oil, coal and gas. Finally by accelerating the global clean energy transition, the policy contributes to limiting future climate change and the increasing frequency of extreme heatwaves, storms and flooding already affecting Europe as the world’s fastest-warming continent. As a majority of the IEA member states are European, this is particularly relevant.
One factor influencing this initiative is the divisions that exist between wealthier economies and middle- and lower-income economies. Many middle and lower income economies support climate action but argue that they do not have the financial resources needed to transition away from fossil fuels while also achieving economic growth. At the same time, wealthier countries continue to push for stronger climate commitments creating some tension. By focusing on finance rather than emissions targets alone, Birol attempts to bridge these competing interests and create a pathway that supports both development and decarbonisation.
This initiative is also shaped by the role of international organisations (IOs). The IEA cannot directly finance projects or force countries to adopt policies. Instead it must work through cooperation and partnerships. This policy reflects those constraints by bringing together governments, development banks, international organisations and private investors around a common objective.
This initiative helps Birol achieve his broader goal of transforming the IEA into a truly global energy institution rather than an organisation focused primarily on OECD countries. By addressing the financial barriers faced by emerging and developing countries, he expands the IEA’s relevance in regions that are expected to account for much of future energy growth and emissions growth. The initiative therefore strengthens the IEA’s role in global climate governance while also positioning Birol as a leader focused on practical and economically viable climate solutions. By prioritising investment in clean energy across middle and lower income economies instead of focusing solely on energy security in OECD member states, this initiative conveys how the IEA’s role has expanded under Birol’s leadership.
IEA Critical Minerals and Clean Energy
The IEA Critical Minerals and Clean Energy Policy is a multi-instrument policy framework that was launched at the IEA Paris summit in September 2023. It aims to make mineral laws more transparent, reduce dangerous supply concentration, and raise awareness on environmental and social standards in mineral extraction. By doing so, it seeks to strengthen energy security and sustainability regarding mineral production and extraction.
It was mainly created due to the rapidly increasing demand of critical minerals for the production of new clean energy technologies. With an increase in demand for minerals such as nickel, cobalt, graphite and rare earth elements, concerns about resource availability of material arose, geopolitical vulnerability increased, and environmental and social impacts due to mining started to be visible. So, in September of 2023, Birol decided to launch the comprehensive critical minerals and clean energy policy framework, seeking to strengthen security while continuing the clean transition.
The policy operates through three main mechanisms that improve transparency, logistics, and management throughout. First, the Global Critical Minerals Outlook which provides supply and demand forecasts for copper, lithium, nickel, cobalt, graphite and other minerals that are at risk of fast consumption. It provides an overview of industry developments from the previous year onwards and offers long-term outlooks for the demand and supply of key energy transition minerals based on the latest technology and policy trends.
The second mechanism is the Voluntary Critical Minerals Security Programme which will focus on the participation of member states to conduct simulation exercises of stockpiling, exercises in case of emergency, and coordinated government responses in relation to the IEA’s legacy oil-sharing mechanism.
Finally, a Critical Minerals Policy Tracker that benchmarks national ESG ( Environmental, Social, and Governance) standards, policies that must be mandatory, and permitting regimes across all member states, encouraging transparency, consistency, and responsible development.
Unlike many national policies, the IEA is a multilateral institution that does not implement policies within a single country. The policy operates globally throughout all member states and partnering economies. It highlights its voluntary mechanism, allowing all member states to partake as they desire, yet the framework is primarily directed towards developing and emerging countries and economies. Furthermore, Birol’s policy aims to actively establish connections between producer nations, by encouraging partnerships between producer countries and major consuming member states, promoting a diversified and resilient supply chain. The annual Global critical mineral Outlook also provides data specific for each country, allowing countries to use the IEA analysis as the direct evidentiary basis for their industrial strategies.
The policy directly reflects Birol’s point of view towards the increasing necessity of critical minerals for the clean transition. The IEA was created in 1974 in response to the Arab oil embargo and the overall oil crisis. Birol had consistently argued that critical minerals are the frontline issue for safeguarding global energy and economic security in an era of geopolitical tensions. He has warned that concentrated control over the production and refining of critical minerals could expose member states to geopolitical pressure, trade restrictions, and supply shocks that would delay the effectiveness of the clean energy transition. The average market share of the top three refined material producers rose substantially between 2020 and 2024, with China dominating refining in cobalt, lithium, graphite, etc.
IE x RAIA Summer Research Programme:
This article is an excerpt from a report on Fatih Birol produced as part of a RAIA research programme on climate leaders. For a full picture of Birol’s climate leadership, including the sources, read the full report. This project was fully financed by IE University’s School of Politics, Economics and Global Affairs and School of Science and Technology.
Authors: Sofia Hession, Alexandra Björkman & Ariadna Alvarenga
Editor: Roxane de Bergevin
Project Lead: Dario Hasenstab
