Gold is still worth holding! Soaring commodity prices sustainable recovery spending dragged down

Since the outbreak began, governments around the world have pledged more than $710 billion for sustainable recovery measures by 2030, the International Energy Agency (IEA) said. This figure represents a 50% increase over October 2021 and represents the largest clean energy fiscal recovery effort in history. Despite this growth, IEA warned in its latest Sustainable recovery tracking report that regional imbalances, coupled with rising commodity prices after the war between Russia and Ukraine, were a cause of concern. IEA said in a statement earlier this week that advanced economies intend to spend $370 billion by the end of 2023. This level of short-term government spending will help open the door for IEA to achieve global net zero emissions by 2050, the report said. According to IEA data, emerging and developing economies have made plans to spend about $52 billion on sustainable recovery by the end of 2023. This is far below the target needed to achieve net zero emissions by the middle of the century, the report said. "the gap is unlikely to narrow in the short term, as governments with already limited fiscal means now face the challenge of maintaining the food and fuel affordability of their citizens in the face of soaring commodity prices after Russia's invasion of Ukraine," IEA said. Russia is a major supplier of oil and gas. Over the past few weeks, because of the war between Russia and Ukraine, many major economies have made plans to reduce their dependence on Russian hydrocarbons. At the same time, commodity prices have risen in recent months. According to the United Nations, the Food and Agriculture Organization's FAO food price index averaged 159.3 points in March, up 12.6 percent from February. In a statement last week, FAO Director General Qu revealed the challenges facing the world. He says food prices measured by the index have reached an all-time high. "in particular, the prices of staple foods such as wheat and vegetable oil have been soaring recently, bringing huge costs to global consumers, especially the poorest, and the war in Ukraine has made the situation worse," he added. " "countries with clean energy at the heart of their recovery plans are maintaining the possibility of achieving net zero emissions by 2050, but challenging financial and economic conditions have damaged public resources in many other countries around the world," Fatih Birol, director-general of IEA, said on Tuesday. Birol added that international cooperation is essential to change these clean energy investment trends, especially in emerging and developing economies with the greatest demand.