According to the International Energy Agency, efforts to reduce the effects of climate change are accelerating worldwide. Investments in clean energy are also growing and are expected to exceed $1.7 trillion in 2023.
The International Energy Agency has said in its latest report that “the global energy sector is expected to invest about 2.8 trillion dollars this year, of which 60.7 percent will go to clean technologies.”
The report predicts that as the global energy crisis exacerbates security and affordability issues, spending on clean energy technologies will exceed spending on fossil fuels.
Green energy includes renewable sources, electric vehicles, nuclear power, low-emission fuels, efficiency improvements and heat pumps.
According to the report, a little over a trillion dollars in global crude energy investment will go to coal, gas and oil.
“Clean energy is advancing rapidly than many people realize,” said Mr. Fateh Birol, executive director of the International Energy Agency. This is evident in investment trends where clean technologies are moving away far from fossil fuels.
“For every dollar invested in fossil fuels, about $1.7 is now going into clean energy, compared to one to one five years ago,” he added.
The report also predicts that in 2023 spending on solar energy will exceed $1 billion per day, or $382 billion for the year, while investment in oil production will remain at $371 billion.
From 2021 to 2023, annual investment in clean energy driven by renewables and electric cars is expected to grow by 24 percent, compared to a 15 percent increase in investment in fossil fuels over the same period.
More than 90 percent of this growth comes from developed countries and China, the report said. If the transition to renewable energy elsewhere does not accelerate, it risks creating a new energy divide.
The International Energy Agency cited rapid economic expansion and erratic fossil fuel prices as spurring investment in clean energy in recent years, raising concerns about energy security, particularly in the wake of the Ukraine crisis. The air
Other factors influencing clean energy investment growth include significant policy support in Europe, Japan, China, and other regions through US deflationary legislation.