IEA bets on India to end green funding deadlock

International Energy Agency (IEA) executive director Fatih Birol is relying on India to break the deadlock on creating a financial mechanism to boost clean energy investments in developing countries as he sees the country as "the leader of global south".

"I see India as the leader of global south now. It is very clear. I am very hopeful that India will be able to break the deadlock of the finance in clean energy investment," the IEA chief told ET.

Birol has shepherded IEA into unchartered territories - modernising the agency by bringing in emerging economies into the fold and focusing on clean energy transition.

This is because he believes "the energy sector has a big responsibility" in dealing with environmental and climate change issues in the world.

"About 80% of the emissions causing climate change are from the energy sector," Birol said. "Without transforming the energy sector, we have no chance whatsoever to address our climate problem. Many emerging economies and developing countries need energy for the development for industrialisation, more comfortable lives. And I thought it is important that without losing time, to show the right way to developing countries, so that they don't make the mistake that the advanced economies did."

Praising the "big, big, big efforts" of many emerging countries towards clean energy, the IEA chief said India serves as a validation in clean energy initiatives. India is "one of the locomotives engines of the renewable capacity growth around the world, especially solar", he said.

At the same time, it is important to remember that affordability of energy and energy security are critical for developing countries, Birol said.

"That is what we also say to the advanced economies, the rich countries - that it is their moral responsibility and in their own benefit that they support the clean energy transition in the emerging economies," he said.

The 65-year old Turkish economist and energy expert acknowledged that there are many challenges to reach the climate goals. But if he has to identify one measure that would help achieve the climate goals, then "the fault line is investments in clean energy in the developing world".