Global clean energy investments to reach $2t in 2024

Emerging and developing markets, however, remain underfunded.

Clean energy technologies and infrastructure spending is expected to reach $2t in 2024, exceeding the spending on fossil fuels for the second time in a row, according to a report by the International Energy Agency (IEA).

In the World Energy Investment report, IEA said the $2t expenditure will cover renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps.

Slightly over $1t will go to coal, gas, and oil.

“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy. For every dollar going to fossil fuels today, almost two dollars are invested in clean energy,” said IEA Executive Director Fatih Birol.

However, the IEA noted that there are still imbalances as only $300b spending on clean energy will be going to emerging and developing economies, outside of China, led by India and Brazil, representing around 15% of the global clean energy investments.

China is expected to dominate the clean energy investments, estimated to reach $675b, followed by Europe and the US with $370b and $315b investments, respectively.

“The rise in clean energy spending is underpinned by strong economics, by continued cost reductions and by considerations of energy security. But there is a strong element of industrial policy, too, as major economies compete for advantage in new clean energy supply chains,” Birol said.

“More must be done to ensure that investment reaches the places where it is needed most, in particular the developing economies where access to affordable, sustainable and secure energy is severely lacking today,” he added.