Global investment in clean energy will reach $2 trillion (€1.84 trillion) this year, double the amount invested in fossil fuels, according to the International Energy Agency (IEA).
“Today, for every dollar invested in fossil fuels, almost two dollars are invested in clean energy,” said IEA Executive Director Fatih Birol.
Clean technologies include renewable energy, electric vehicles, nuclear power, power grids, storage, low-emission fuels, efficiency improvements and heat pumps.
Meanwhile, total energy investment is expected to exceed $3 trillion for the first time in 2024, the agency said in its annual World Energy Investment Report.
By 2023, total investment in renewable electricity and grids will surpass investment in fossil fuels for the first time.
Solar investments outpace other forms of energy
According to the report, more money is being poured into solar photovoltaic (PV) panels than all other electricity generation technologies combined.
The cost of solar panels has fallen 30% over the past two years, and by 2024, “solar investment is expected to rise to $500 billion as lower module prices spur new investment.”
China will lead the way in clean energy investments in 2024 with an estimated $675 billion, followed by Europe at $370 billion and the United States at $315 billion.
Lack of investment in some areas
By comparison, global upstream oil and gas investment is expected to show a similar increase in 2023, before growing 7% to $570 billion in 2024.
National oil companies in the Middle East and Asia are the main drivers of this growth, according to the report.
The IEA has warned that global investment in renewable energy needs to double by 2030 to meet medium-term global targets for reducing harmful carbon emissions.
But energy investment remains lacking in some parts of the world, such as emerging markets and developing countries outside China, the agency added.
The IEA warned that prohibitively high costs were causing “large imbalances and shortfalls in energy investment flows in many parts of the world”.
dh/ab (AFP, Reuters)
