Storebrand, the Norwegian institutional investor and provider of funds for both institutional and retail investment funds, has criticised the International Energy Agency over its recent World Energy Outlook report, suggesting that it does not go far enough to support the objectives of the Paris Agreement intended to limit the effects of climate change.
Odd Arild Grefstad, CEO of Storebrand, said: "The IEA needs to provide better tools for governments, investors and companies to align policies, investments and business strategies with the Paris Agreement."
"The IEA has the opportunity to take the lead and showcase what it takes to deliver in line with the Paris Agreement. In their latest report, they have not succeeded in this".
Storebrand and 63 other international companies, organizations and academics, including Nordea, IKEA, Zurich Insurance Group, Folksam and former UN climate chief Christiana Figueres, have issued a joint call to action to the IEA, which has been handed to IEA CEO Fatih Birol.
The letter notes that the IEA needs to provide better analysis of what is required to meet the 1.5ºC warming limit that the Paris Agreement targets.
It suggests that the IEA's Outlook report calculates a 1.8ºC warming by 2070. The later states that this is two decades too late, and that there are not enough guidelines on what measures are required to keep global warming to the 1.5 degrees target.
Other issues noted in the letter include a requiest for the IEA to include analyses on implementation of reneable energy, increased energy efficiency, increased proportoin of electric cars, and the level of slowdown in development of oil, gas and coal production within the scope of a renewables scenario.
The letter states: "As the WEO can become a self fulfilling prophecy, it carries a major responsibility that goes way beyond that of other publications that are merely descriptive. The IEA cannot be derelict of this responsibility."
"We renew our call on the IEA to make a fully transparent Sustainable Development Scenario the central reference in the 2020 WEO. The ambition of the SDS must be increased to present a reasonable probability of reaching net-zero emissions by 2050 (not 2070)and limiting warming to 1.5ºC (not 1.8ºC)."
"The year 2020 marks a turning point for the world — the year when we either grasp the challenges and opportunities before us, or continue delaying and obstructing the low-carbon transformation. This is an opportunity for the IEA to step out in front and show the world what is necessary for us to deliver a 1.5ºC future."