IEA: USD 1.7 trillion in 2023 in clean energy investment

New report released by the International Energy Agency (IEA) this week.

“Clean energy is moving fast – faster than many people realise. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels,” said 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. One shining example is investment in solar, which is set to overtake the amount of investment going into oil production for the first time.”

Consumers are also investing in more electrified end-uses. And enhanced policy support have also played a role through major actions such as the US Inflation Reduction Act, the EU Green Deal Industrial Plan and initiatives in Japan, China and elsewhere.

There are some bright spots, such as dynamic investments in solar in China and India and in renewables in parts of the Middle East and Brazil, with a steady upward curve.

China alone added over 100 GW of solar PV capacity in 2022, almost 70% higher than in 2021, and annual installations increased by 40% or more in Europe, India and Brazil, despite inflation and supply chain issues.

Global transport biofuel capacity expanded by 7% in 2022, its largest annual increase in over a decade. Biorefineries focused on renewable diesel made up the bulk of the growth, while bioethanol capacity saw notable increases in Brazil, Indonesia, India and China.

Oil and gas industry spending commitments to carbon capture, utilisation and storage (CCUS) and hydrogen are also growing.

Canada and Australia led lithium developments, but activities are also growing in Africa and Brazil.

The IEA was created in 1974 to help co-ordinate a collective response to major disruptions in the supply of oil. Over time it expanded its spectrum issues to include renewables, oil, gas and coal supply and demand, energy efficiency, clean energy technologies, electricity systems and markets, access to energy, demand-side management, and much more. And since 2015, it opened its doors to major emerging countries. Click here to see country members (31), accession (4) and associated (11, including Brazil, China, India and Indonesia).

Click here to read the press release . And at the image below to explore this new report of 181 pages.

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