October 19, 2021
Markets

IEA warns of volatile energy markets ahead

Steam rises from the cooling towers of the Lippendorf power plant south of Leipzig, Germany.

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Energy prices around the world are at record highs as a power crunch hits Europe and Asia — and the International Energy Agency warned Wednesday that volatility is here to stay.

In its annual , the Paris-based agency said the world is underinvesting now for future energy consumption, which will make the transition to net-zero emissions unstable. 

“There is a looming risk of more turbulence for global energy markets,” Fatih Birol, IEA’s executive director, said in a statement. “We are not investing enough to meet… future energy needs, and the uncertainties are setting the stage for a volatile period ahead.”

The report pointed to policy and demand uncertainties, among other things, as reasons behind the current underinvestment. 

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