The report, entitled ‘The impact of the financial and economic crisis on global energy investment’, suggests that although the outlook for renewables-based power plants is mixed, stimulus provided by government fiscal packages, policies and support mechanisms of individual countries would probably offset a portion of the expected decline.

The analysis of the IEA found that in order to limit the rise in global temperature to around 2 degrees Celsius governments should be looking to increase the level of new funds they commit to energy efficiency and low-carbon energy policies by a factor of around four.

The IEA strongly urges governments to act on economic, energy security and environmental goals “to support investment in energy efficiency and clean energy.”