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IEA urges reduced transport to cut oil use amid supply crunch

Ten-point plan to cut oil use as Russia’s invasion of Ukraine deepens concerns about supply

The International Energy Agency has published a 10-point plan to cut energy usage as Ukraine invasion disrupts market.

Fri Mar 18 2022 - 13:29

The International Energy Agency (IEA) on Friday urged consumers to travel less, share transport and drive more slowly, part of a 10-point plan to cut oil use as Russia's invasion of Ukraine deepens concerns about supply.

The plan by the Paris-based grouping of 31 industrialised countries – which does not include Russia – underlines the urgency of a supply crunch brought on by sanctions and buyer aversion to Russian oil, which has raised fuel prices.

The recommendations could cut oil demand by 2.7 million barrels a day within four months, the IEA said.

They include:

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- reducing motorway speed limits by 10km an hour;

- make large cities car-free on Sundays;

- reduce fares on public transport and promote escooters, cycling and walking;

- working from home for three days a week;

- car sharing or restricted access on alternate days in cities;

- hasten adoption of electric vehicles;

- promote more efficient use of road haulage and goods deliveries;

- opt for high speed trains over air travel where possible;

- avoid business travel, using videoconferencing instead;

As the bulk of oil demand comes from transport, it said, the plan focuses on “how to use less oil getting people and goods from A to B”, drawing on “concrete measures” that have already been used in multiple countries and cities.

In a potential setback to the agency’s aim to cut demand, many IEA members states and other countries have implemented, or are discussing, power and transport fuel subsidies.

Subsidies

The agency projected in November that fossil fuel subsidies soared by the highest annual rate ever in 2021 to $440 billion (€400 billion) as governments around the world tried to shield consumers from price hikes in a boon to consumption and pollution.

Friday's announcement follows a similar 10-point action plan the group put forward earlier this month to cut reliance on Russian gas, in which it said Europe could cut imports of the fuel from Russia by more than a third within a year.

The IEA urged governments to make the changes permanent, not just for economic reasons but in order to combat climate change.

“Sustained reductions are important not only to improve countries? energy security but also to tackle climate change and reduce air pollution.” – Reuters

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