The global investments in clean energy is projected to the overall investments in fossil fuels production for the first time and signaling a significant shift towards more sustainable options, according to a new report by the International Energy Agency (IEA).
As per the IEA report, global investment in clean energy is projected to reach $1.7 trillion in 2023 and it also highlights that spending on clean energy technologies is outpacing investment in fossil fuels due to concerns about affordability and energy security stemming from the global energy crisis.
About $2.8 trillion is set to be invested globally in energy in 2023, of which more than $1.7 trillion is expected to go to clean technologies–including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps–according to the IEA’s latest World Energy Investment report.
Annual clean energy investment is expected to rise by 24% between 2021 and 2023, driven by renewables and electric vehicles, compared with a 15% rise in fossil fuel investment over the same period.
But more than 90% of this increase comes from advanced economies and China, presenting a serious risk of new dividing lines in global energy if clean energy transitions don’t pick up elsewhere, the report added.
IEA Executive Director Fatih Birol said: “Clean energy is moving fast – faster than many people realise. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels.”
“For every dollar invested in fossil fuels, about $1.7 is now going into clean energy. Five years ago, this ratio was one-to-one. One shining example is investment in solar, which is set to overtake the amount of investment going into oil production for the first time,” he added.
Led by solar, low-emissions electricity technologies are expected to account for almost 90% of investment in power generation.