Clean energy investment to hit $2 trillion in 2024
Total energy investment is expected to exceed $3 trillion for the first time.
Image for illustration purposes.
UK, London: According to an International Energy Agency report, global investment in clean energy technology and infrastructure is set to hit $2 trillion this year, double the amount going into fossil fuels. Total energy investment is expected to exceed $3 trillion for the first time, it was announced in the IEA’s annual World Energy Investment report.
$2 trillion will go to clean technologies such as renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps. The rest will be directed towards gas, oil, and coal. Combined investment in renewable power and grids overtook the amount investment in fossil fuels for the first time in 2023.
“For every dollar going to fossil fuels today, almost two dollars are invested in clean energy. The rise in clean energy spending is underpinned by strong economics, continued cost reductions and by considerations of energy security,” said IEA Executive Director Fatih Birol.
China is expected to account for the biggest share of clean energy investment with an estimated $675 billion. Europe is set to account for $370 billion and the United States for $315 billion. More spending is focused on solar photovoltaic (PV) generation technology than on any other. Investment in PV tech is expected to grow to $500 billion due to falling solar module prices.
Meanwhile, global upstream oil and gas investment is expected to increase by 7% in 2024 to $570 billion, following a similar rise in 2023, mostly led by national oil companies in the Middle East and Asia. Shortfalls remain in energy investment in parts of the world such as emerging economies and developing economies outside China, it added.
Source: Reuters
#clean energy#IEA#International Energy Agency#investments#Renewables#World Energy Investment