IEA
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MEXIREC Ministerial
Dr. Fatih Birol, Executive Director, International Energy Agency
Mexican Dialogues on the Future of Energy, Mexico City, 12 September 2017

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The global energy context today
 Global energy markets are changing rapidly
 North America entering a new age of energy prosperity
 Renewables keep breaking records, underpinned by policy support & cost reductions
 Electric car sales are growing exponentially
 Universal access to modern energy remains a distant goal
 1.2B people lack access to electricity; 2.7B people lack access to clean cooking
 Air pollution still a major problem
 6.5 million deaths each year due to emissions from the energy sector
 Current climate pledges fall short of meeting mitigation goals

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Supply-side investment needs to be re-directed, not increased; demand-side investment for
energy efficiency, electrification & renewables needs to ramp up significantly
Renewables and efficiency are key to global climate change mitigation
Gt
18
22
26
30
34
38
2010 2020 2030 2040
Central Scenario
Efficiency
Renewables
CCS
Nuclear
Fuel switching
Other
2 °C Scenario
Global CO2 emissions reductions in the Central & 2 °C Scenario by technology

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The potential of clean energy technology remains under-utilised
Recent progress in some clean energy areas is promising, but many technologies still need a strong
push to achieve their full potential and deliver a sustainable energy future
Energy storage
Solar PV and onshore wind
Building construction
Nuclear
Transport – Fuel economy of light-duty vehicles
Lighting, appliances and building equipment
Electric vehicles
Energy-intensive industrial processes
Transport biofuels
Carbon capture and storage
More efficient coal-fired power
●Not on track ●Accelerated improvement needed ●On track

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Wind & solar transforming the power sector, but challenges remain
The next chapter in the rise of renewables requires policies to; (i) push their role in heat &
transport and (ii) address system integration of wind & solar
Share of wind and solar in total electricity generation in selected countries
0% 10% 20% 30% 40% 50%
Mexico
India
China
Canada
United States
United Kingdom
Italy
Germany
Spain
Denmark
2010
2016

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0
10
20
30
40
2012 2015
USD(2016)billion
Private Public
0
10
20
30
40
2012 2015
USD(2016)billion
R&D funding on clean energy has remained steady at around $37 billion/year, leaving significant room
for growth
Global clean energy R&D funding needs a strong boost
Global R&D spending
on clean energy
Top 3 IT company R&D spenders

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Closing remarks
• Addressing climate change, energy security, air pollution and energy access requires
an energy transition of exceptional scope, depth & speed
• Renewables – together with Energy Efficiency – are key pillars of the solution, but
rates of deployment of most technologies are not on track
• The next chapter in the rise of renewables requires more work on systems
integration & multiplying their applications in buildings, industry and transport
• With its “open doors” policy, the IEA is ready to support all countries design better
energy policies to accelerate the energy transition
• IEA commends Mexico for its energy sector reforms & looks forward to welcoming it
into the IEA