Research by the International Energy Agency (IEA) has shown that US$1.7 trillion will be spent on clean energy in 2023. Projections in the IEA report show that global solar investments will exceed oil and gas investments for the first time. However, the intergovernmental organisation that provides policy recommendations, analysis and data on the global energy sector has warned that 2023 fossil fuel investment will be more than double the levels needed in 2030 – for the world to maintain a net zero 2050 trajectory. Further, upstream oil and gas spending is expected to rise this year, returning to pre-pandemic levels. The report said that clean energy investments have been boosted by factors including improved economics at a time of high and volatile fossil fuel prices, and enhanced policy support through instruments such as the US Inflation Reduction Act. Fatih Birol, CEO at the IEA, said: “For every dollar invested in fossil fuels, about US$1.7 are 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.”
While global clean energy investment is seeing strong momentum, this growth has been uneven.
More than 90% of the increase in recent years is in advanced economies & China
— International Energy Agency (@IEA) May 26, 2023