(MENAFN) As global efforts to combat climate change intensify, investment in clean energy is experiencing a significant surge and is projected to surpass USD1.7 trillion in 2023, as stated by the International Energy Agency (IEA). In its latest report, the IEA highlighted that the global energy sector is expected to witness a total investment of around USD2.8 trillion this year, with approximately 60.7 percent directed toward clean technologies.
The report predicts that as concerns regarding security and affordability arising from the ongoing global energy crisis gain prominence, spending on clean energy technologies will surpass investments in fossil fuels. Clean energy encompasses a broad spectrum of sustainable technologies, including renewables, electric vehicles, nuclear power, low-emission fuels, efficiency improvements, and heat pumps.
According to the IEA, the remaining global energy investments of slightly over USD1 trillion will be allocated to coal, gas, and oil. IEA Executive Director Fatih Birol emphasized the rapid progress of clean energy, stating that it is advancing at a faster pace than many realize. He highlighted the investment trends, which clearly indicate the growing dominance of clean technologies over fossil fuels. Birol noted that for every dollar invested in fossil fuels, approximately USD1.7 is now being channeled into clean energy. Just five years ago, this ratio stood at one-to-one.
The report further predicts that in 2023, spending on solar power will surpass USD1 billion per day or reach USD382 billion for the year. In contrast, investment in oil production is expected to amount to USD371 billion. Over the period from 2021 to 2023, annual investments in clean energy are projected to increase by 24 percent, driven by the growth of renewables and electric vehicles. In comparison, investments in fossil fuels during the same timeframe are expected to experience a 15 percent increase.
The findings of the IEA report highlight the accelerating transition towards clean energy sources, reflecting the increasing global recognition of the urgency to combat climate change. The significant rise in investments in clean technologies demonstrates a growing confidence in their long-term viability, cost-effectiveness, and potential to reduce carbon emissions. As the world moves towards a more sustainable energy future, these investment trends pave the way for further advancements in renewable energy infrastructure, technology innovation, and the decarbonization of the global economy.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.