Global spending on clean energy technology and infrastructure is expected to reach $2 trillion in 2024, according to the

International Energy Agency (IEA), although higher financing costs hinder new projects, especially in emerging and

developing economies.

The International Energy Agency said in its latest report that despite financing pressures, global investment in clean

energy will almost double that of fossil fuels in 2024, helped by improved supply chains and lower costs for clean technologies.

According to the International Energy Agency’s latest World Energy Investment Report, total global energy investment is

expected to exceed US$3 trillion for the first time in 2024, of which approximately US$2 trillion will be spent on clean

technologies, including renewable energy, electric vehicles, Nuclear power, grids, energy storage, low emission fuels,

efficiency improvements and heat pumps.

The remainder, just over $1 trillion, will be spent on coal, natural gas and oil.  In 2023, total investment in renewable

energy and grids will exceed spending on fossil fuels for the first time.

However, a new report warns that there remain serious imbalances and shortages in energy investment flows in many

parts of the world. It highlights lower levels of clean energy spending in emerging and developing economies

(excluding China), led by India and Brazil, which will exceed $300 billion for the first time.

However, this only accounts for about 15% of global clean energy investment, well below the level needed to meet

the growing energy needs of many of these countries, where high capital costs have hindered the development of

new projects.

Fatih Birol, Executive Director of the International Energy Agency, said: “Even amid challenging economic conditions,

investment in clean energy is setting new records, underscoring the momentum behind the new global energy economy.

Today, every dollar invested in fossil fuels , nearly $2 is invested in clean energy.”

He added: “Growth in clean energy spending has been driven by a strong economy, continued cost cutting and concerns

about energy security. But there is also a strong focus on industrial policy as major economies compete for advantage

in new clean energy supply chains. ”

When the Paris Agreement was signed in 2015, total investment in renewable and nuclear power generation was twice

that of fossil fuel power generation. The report emphasizes that in 2024, this number will rise to ten times, and solar

photovoltaics will lead the transformation of the power industry. More money is now invested in solar photovoltaics

than in all other power generation technologies combined.  Investment in solar PV will grow to $500 billion in 2024

as falling module prices spur new investment.

In 2024, China will account for the largest share of clean energy investment, estimated at $675 billion. This is mainly

due to strong domestic demand in three industries: solar energy, lithium batteries and electric vehicles.

Europe and the United States follow, with clean energy investments of $370 billion and $315 billion respectively,

according to the International Energy Agency. These three major economies alone account for more than two-thirds

of global clean energy investment, highlighting the disparity in international capital flows into energy.

Following similar growth in 2023, global upstream oil and gas investment is expected to grow by 7% in 2024,

reaching $570 billion.

Spending growth in 2023 and 2024 will come primarily from national oil companies in the Middle East and Asia.

The report found that oil and gas investment in 2024 is broadly in line with demand forecasts for 2030 in today’s

policy environment, but is well above what would be expected under a scenario that would meet national or

global climate goals.

According to the report, clean energy investments by oil and gas companies will reach $30 billion in 2023,

accounting for only 4% of the industry’s overall capital expenditures. At the same time, investment in coal

continues to grow, with more than 50 gigawatts of coal-fired power generation approved in 2023, the highest

level since 2015.

In addition to economic challenges, grids and electricity storage have been important constraints to the clean

energy transition. But grid spending is rising, reaching $400 billion by 2024, after holding steady at around

$300 billion per year between 2015 and 2021.