(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 5. Global governments
have invested around $1.34 trillion for clean energy investment
support since 2020, trend reports.
In the push for clean energy transition, government spending has
played a pivotal role in driving significant investment growth
since 2020. Notably, clean energy investment has witnessed a
remarkable surge of nearly 25 percent between 2021 and 2023,
surpassing the growth rate of fossil fuels during the same period,
the International Energy Agency (IEA) reported.
Over the past six months, an impressive $130 billion in new
government spending has been allocated to support clean energy
initiatives, even during a relatively slower period for new
allocations amid the ongoing COVID-19 pandemic.
While this recent slowdown in spending may raise concerns, it
appears to be temporary as several countries are actively
considering additional policy packages. These initiatives are being
discussed in key regions such as the EU, Australia, Brazil, Canada,
and Japan. The proposed allocations primarily focus on bolstering
mass and alternative transit modes, promoting low-carbon
electricity generation projects, and stimulating sales of
low-carbon vehicles.
When considering all measures implemented since 2020, it is
noteworthy that direct incentives targeting manufacturers to
strengthen domestic clean energy production have reached a
cumulative total of approximately $90 billion. These incentives aim
to foster a thriving ecosystem for clean energy manufacturing
within their respective countries.
As governments worldwide recognize the urgency of transitioning
to a sustainable and low-carbon future, the commitment to clean
energy investment remains strong. With ongoing policy discussions
and substantial financial support, the global clean energy sector
is poised for continued growth and advancement.
Meanwhile, in response to the ongoing global energy crisis,
governments have taken significant measures to address short-term
consumer affordability concerns, with a total allocation of $900
billion. These efforts are in addition to existing support programs
and subsidies aimed at mitigating the impact of rising energy
costs. Notably, approximately 30 percent of this affordability
spending has been announced in the last six months, reflecting a
renewed focus on addressing immediate challenges.
However, there have been calls for better targeting of these
measures to prioritize households and industries facing the
greatest hardships. Regrettably, only 25 percent of the
affordability measures are specifically directed towards low-income
households and the most-impacted industries. This discrepancy
raises concerns about the equitable distribution of support and the
effectiveness of these measures in providing relief to those in
greatest need.
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