Stressing the need for clean energy, Maria van der Hoevan, Executive Director, International Energy Agency, said, “We need to re-think fuel subsidies which in 2011 exceeded $500 billion”.
Subsidies need to be shifted from fossil fuel to renewable energy, she said at a FICCI conference here on Tuesday. Currently, subsidy is used by those who are not necessarily the poorest, she said.
When asked, on the sidelines of the conference, whether the sanctions on Iran have had adverse impact on supplies, she said global crude oil market was well supplied.
“Last year, we saw Iran exports plummet, but at the same time we had rise in supply from Saudi Arabia and there was slowdown on Europe. The market forces have been adjusting to the sanctions on Iran and nobody is running out of oil,” she said.
While stressing on the importance of nuclear energy, she said, “Nuclear energy will contribute to 18 per cent of reduction in carbon footprint. Power sector owes much responsibility in reducing emissions,” adding that investments in clean energy need to go up, on research, development and infrastructure.
Van der Hoeven said, “Investment in clean energy makes economic sense as every additional dollar invested can generate $3 in future fuel savings by 2050.”