Reuters: Gas glut threatens climate battle-IEA

A new "golden age of gas" could derail global efforts to fight climate change as indebted governments mull a switch to the cheaper fuel, the International Energy Agency's chief economist said on Thursday.

Government subsidies designed to promote renewable energy currently amount to around $70 billion globally, he said.

But governments may be tempted to drop them as new shale gas and export facilities of liquefied natural gas (LNG) in east Africa and Australia pressure prices lower.

"Governments are feeling more and more uncomfortable to put money in renewables especially in the days of austerity, and some governments are cutting their support," Fatih Birol from the West's energy watchdog said at an energy conference in Berne, Switzerland.

"The availability of cheap or lower gas prices are putting additional pressure on renewable energies," he added.  MORE