Clean energy outpaced fossil fuel investments in 2024, IRENA says

Combined investment in clean energy technology amounted to an estimated $1.19t.

Investments in renewable power, grids and battery storage reached higher levels than fossil fuel spending last 2024, according to International Renewable Energy Agency’s (IRENA) latest finance report.

Combined investment in these technologies amounted to an estimated $1.19t compared with $1.13t for fossil fuels.

Fossil fuel investment rose 3% in 2024 after returning to pre-pandemic levels in 2023, continuing its recovery from the 2020 low. This growth has been driven partly by Europe’s efforts to secure alternative oil and gas supplies following the Ukraine conflict, according to the report.

Public support remains a major driver of fossil fuel activity. Government support for coal, oil and gas reached at least $1.5t in 2023, consisting of subsidies, state-owned enterprise capital spending and public finance . Consumption subsidies accounted for $1.1t, lowering end-user energy costs and reducing incentives for efficiency improvements and fuel switching.

A further $447b of public financial support in 2023 locked in new fossil fuel production through subsidies, state-owned enterprise capital investments and international public finance . In comparison, the G20 provided $168b in public support for renewable power, less than one-third of the fossil fuel amount.

IRENA notes that continued backing of fossil fuel interests risks making public institutions fallback financiers, heightening their exposure to stranded-asset risks and constraining broader social and economic priorities.