IEA predicts that global spending on clean energy is expected to reach $2 trillion this year, nearly double the investment in fossil fuels during the same period. IEA also points out that investment in clean energy in emerging and developing economies (excluding China) is still limited, while the growth of major oil and gas investments globally still comes from the Middle East and Asia.
On Thursday, the International Energy Agency (IEA) released its annual World Energy Investment Report, stating that global spending on clean energy technology and infrastructure is expected to reach $2 trillion by 2024, nearly double the investment in fossil fuels during the same period, thanks to supply chain improvements and reduced costs of clean technologies. In terms of product structure, the operating income of $10-30 billion products was $401/1288/60 million respectively.
However, the IEA also pointed out that investment in clean energy in emerging and developing economies (excluding China) remains limited, while major oil and gas investment growth still comes from the Middle East and Asia. However, the IEA expects clean energy investment in the Middle East to increase significantly in the coming years.
Global spending on clean energy will reach $2 trillion.
The IEA estimates that global energy investment this year will exceed $3 trillion for the first time, of which about $2 trillion will be spent on clean technology (including renewable energy, electric vehicles, nuclear power, grids, energy storage, low-emission fuels, energy efficiency improvements, and heat pumps). The remaining slightly more than $1 trillion will be spent on traditional fuels such as coal, natural gas, and oil.
When the Paris Agreement was reached in 2015, total investment in renewable and nuclear power generation was twice the investment in fossil fuel power generation. The report emphasizes that by 2024, this figure will increase by a factor of ten.
The IEA noted that solar photovoltaics will lead the transformation of the electricity industry: now, more money is invested globally in photovoltaic electricity generation than in all other electricity generation technologies combined. By the end of 2024, with new investments stimulated by falling photovoltaic module prices, annual investments in solar photovoltaics will grow to $500 billion.
The report states that traditional oil and gas industries still do not invest enough in clean energy: in 2023, global oil and gas companies' investment in clean energy will reach $30 billion, accounting for only 4% of the industry's total capital expenditure. Meanwhile, coal investment continues to grow, with more than 500 GW of approved coal-fired power projects in 2023, the highest level since 2015.
China remains the 'top student' in global clean energy investment.
China is undoubtedly the largest contributor to global clean energy investment. The IEA points out that by the end of 2024, China will have the largest share of global clean energy investment, expected to reach $675 billion. This is mainly due to the strong demand for the solar power, lithium battery, and electric vehicle industries in the country.
Europe and the United States follow closely with clean energy investments of $370 billion and $315 billion, respectively.
Just these three major economies account for more than two-thirds of global clean energy investment, highlighting the serious imbalance and inadequacy of clean energy investment in many parts of the world.
The report emphasizes that clean energy expenditure levels in emerging and developing economies (excluding China) led by India and Brazil are still low. This year, the clean energy expenditure of these emerging and developing economies has just exceeded $300 billion for the first time, accounting for only about 15% of global clean energy investment, far below the level needed to meet the growing energy demand in these countries.
Fatih Birol, executive director of the International Energy Agency, said: 'We must do more to ensure that investment reaches where it is most needed, especially in developing economies, where there is currently a serious lack of affordable, sustainable and safe energy.'
Clean energy investment in the Middle East is expected to increase significantly.
After global upstream oil and gas investment grew by about 7% in 2023, it is expected to grow by another 7% to $570 billion in 2024. Spending growth in 2023 and 2024 will come mainly from state-owned oil companies in the Middle East and Asia.
The Middle East has five of the world's largest oil-producing countries: Saudi Arabia, Iraq, the United Arab Emirates, Iran, and Kuwait. In addition, the Middle East is also an important natural gas producer, with Iran, Qatar, and the UAE ranking among the top ten natural gas producing countries in the world.
At present, fossil fuel supply spending in the Middle East dominates: for every $1 invested in fossil fuels, only 20 cents are invested in clean energy. The IEA expects energy investment in the region to reach around $175 billion by the end of 2024, of which clean energy accounts for about 15% of total investment.
Looking ahead, the Middle East may become one of the biggest driving forces for clean energy investment growth. The IEA expects that by the end of 2030, clean energy investment in the region will be more than triple that of 2024. At that time, for every $1 invested in fossil fuels, 70 cents will be invested in clean energy in the Middle East.