Clean and renewable energy investments are expanding vigorously this year to 24% growth from 2021 to 2023 compared to 15% for fossil fuels – coal, gas and oil – during the same period, according to an IEA report released on Thursday.
The report predicts that the value of the energy sector’s investments globally will reach $2.8 trillion this year. Clean energy accounts for about 61%, worth up to $1.7 trillion, including renewables, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency improvements and heat pumps.
The energy agency says more than 90% of the increase in clean energy investment rates comes from advanced economies and China, posing a serious risk of new dividing lines in global energy if clean energy transitions do not move along a balanced path between global economies.
Fatih Birol, Executive Director of the IEA, said: « five years ago this ratio was one to one, and this is a shining example of the shift in investment to solar energy, which is outperforming oil investments for the first time « .
Solar-based low-emission electricity technologies are expected to account for nearly 90% of energy generation investment, according to the Energy Agency, which has monitored double-digit growth in heat pump sales since 2021. The agency expects a one-third jump in electric vehicle sales this year after the huge jump in 2022.
