(MENAFN) According to a new report by the International Energy Agency (IEA) released on Thursday, investments in solar power are poised to surpass those for oil production for the first time this year. The report highlights that global clean energy investment is projected to reach USD1.7 trillion, outstripping the expected investment of over USD1 trillion in fossil fuels. The investments will encompass various sectors including renewable energy, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency upgrades, and heat pumps.
The IEA’s World Energy Investment report emphasizes that clean energy investment is gaining momentum, outpacing fossil fuels due to affordability and security concerns sparked by the ongoing global energy crisis. Between 2021 and 2023, annual investment in clean energy is expected to increase by 24 percent, while fossil fuel investment is projected to rise by 15 percent over the same period.
However, the report also raises a warning about the potential for new divisions in global energy if clean energy transitions do not expand beyond advanced economies and China. The IEA cautions that over 90 percent of the anticipated growth in clean energy investment will come from these regions, leaving emerging and developing economies with significant shortfalls.
Addressing this issue, the report stresses the need for the international community to take action and promote investment in lower-income economies, where the private sector has been hesitant to venture. Failure to address these gaps in clean energy investment may result in a widening disparity in global energy systems.
The findings of the IEA report underscore the ongoing shift towards cleaner and more sustainable energy sources. As concerns about climate change intensify and the economic viability of renewables improves, clean energy investments are becoming increasingly attractive. The substantial increase in clean energy investments is a positive step towards a greener and more sustainable future, but it also highlights the urgency of fostering inclusive clean energy transitions worldwide.
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