The world is investing more in clean energy than fossil fuels, says a new International Energy Agency (IEA) report. IEA expects that investments in solar power in particular, which is estimated to hit $380 billion this year, will overtake the oil outlay that is projected to reach $370 billion.
Global investments in clean energy have risen by 24% from 2021 to 2023, while fossil fuels witnessed a 15% rise in the same period. Some reasons cited for this change are the rising oil and gas prices and the limited availability of supplies.
RE resources, such as solar though, are becoming increasingly cheaper and driving decarbonisation efforts.
“Clean energy is moving fast — faster than many people realise,” states IEA Executive Director Fatih Birol. “For every dollar invested in fossil fuels, about 1.7 dollars are now going into clean energy. Five years ago, this ratio was one-to-one” she adds.
But, the agency also highlights that the rise in fossil fuel investments when they should be experiencing a decline is not a good sign. IEA projects that the investment in oil and gas will return to the pre-pandemic level soon. This increase will jeopardize the industry’s Net Zero by 2050 trajectory.
Moreover, the report also brings out the disparity in clean energy investments, which are concentrated in advanced nations and China. Some of the sunniest nations are investing the least in solar technology.
IEA warns that the world will collectively have to overcome these challenges to meet its net-zero targets.
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Resource: ET Energy
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