Energy: Green Investments in 2024 Double Compared to Fossil Fuel Investments
In 2024, investment in green energy will double investment in fossil energy. This is what follows from a report published by the International Energy Agency (IEA), which explains that global spending on clean energy technologies and infrastructure could reach $2000 billion in 2024. As early as 2023, cumulative investment in renewables and the grid surpassed fossil fuel production for the first time.
The IEA’s annual World Energy Investment report emphasizes that energy investment at the global level will exceed $3000 billion for the first time in history, of which about $2000 billion will be in green technologies, i.e. investments in energy renewable sources, in nuclear power, electric vehicles, grid, storage, and low-emission fuels, efficiency, and heat pumps. The rest will be used for coal, gas, and oil extraction.
“Clean energy investment is setting new records even in difficult economic conditions, emphasizing the momentum of the new global energy economy. For every dollar spent on fossil fuels today, almost two dollars are invested in clean energy,” commented IEA Executive Director Fatih Birol. “Increased clean energy spending is supported by a strong economy, continued cost reductions, and security concerns. But there is also a strong industrial policy element, as large economies compete for advantages in new clean energy supply chains. More needs to be done to ensure that investments reach where they are needed most, especially in developing countries where affordable, sustainable, and secure energy is now sorely lacking.”
In fact, as far as developing countries are concerned, the IEA emphasizes that there are still parts of the world characterized by imbalances and deficits in energy investment flows. Emerging economies, excluding China. This is due to the high cost of capital, which slows down the development of new projects. China ($675 billion), Europe ($370 billion), and the USA ($315 billion) will make two-thirds of the world’s clean energy investments.
However, to meet the targets set by countries, investment in fossil fuels must continue to decline, according to the IEA’s explanation: global investment in the oil and gas sector will increase by 7% in 2024, while investment in coal will also increase.
