Nina Chestny
LONDON (Reuters) – Global investment in clean energy technologies and infrastructure is set to reach $2 trillion this year, double the amount invested in fossil fuels, according to a new International Energy Agency (IEA) report.
Total energy investment is expected to exceed $3 trillion for the first time in 2024, the IEA said in its annual World Energy Investment report.
About $2 trillion would be pumped into clean technologies such as renewables, electric vehicles, nuclear, power grids, storage, low-emission fuels, efficiency improvements and heat pumps, with the rest directed towards gas, oil and coal.
By 2023, total investment in renewable energy and electricity grids will surpass investment in fossil fuels for the first time.
“Today, for every dollar spent on fossil fuels, almost two dollars are invested in clean energy,” said IEA Executive Director Fatih Birol.
“Increased spending on clean energy is supported by a strong economy, continued cost reductions and energy security considerations,” he added.
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.
More spending is going into solar photovoltaics (PV) than any other power generation technology, and falling solar module prices are expected to drive investment to $500 billion by 2024.
Global upstream oil and gas investment is expected to grow 7 percent to $570 billion in 2024, after seeing a similar increase in 2023. This will be mainly driven by national oil companies in the Middle East and Asia, according to the report.
But he added that there remains a lack of energy investment in some parts of the world, such as emerging and developing economies outside China.
(Reporting by Nina Chestny and Alexander Smith Editing)
