IEA report says green energy investments surpass fossil fuels by 70%
POWER & RENEWABLE ENERGY

IEA report says green energy investments surpass fossil fuels by 70%

A recent report from the International Energy Agency (IEA) reveals that the investments in green energy have surged, and has surpassed investments in the fossil fuels by 70%. The report, titled "World Energy Investment 2023," attributes this shift to high fossil fuel prices, enhanced policy support, and a growing commitment to addressing climate change. The IEA highlights that for every dollar spent on fossil fuels, $1.7 is now allocated to clean energy, a significant increase from the 1:1 ratio observed five years ago.

According to the report, the energy sector is expected to witness a total investment of $2.8 trillion in 2023. Out of this amount, over $1.7 trillion will be directed toward clean energy, encompassing renewable power, nuclear energy, grid infrastructure, energy storage, low-emission fuels, efficiency improvements, and electrification projects. The remaining $1 trillion will be allocated to fossil fuels, with coal accounting for 15% of this investment. Despite a declining trend in coal-fired power plant investments, the report highlights a concerning development with 40 GW of new coal plants approved in 2022, the highest figure since 2016. Most of these approvals were in China, reflecting the nation's emphasis on energy security in the wake of electricity market strains and its concurrent deployment of low-emission technologies.

The report also underscores the potential for future investments in green energy. If the current investment trajectory continues, aggregate spending by 2030 on low-emission power, grid infrastructure, energy storage, and electrification for end-use purposes will exceed the levels necessary to meet global climate pledges. Notably, the report suggests that investment levels in solar energy could align with the requirements for achieving a 1.5-degree Celsius stabilization in global average temperatures.

A recent report from the International Energy Agency (IEA) reveals that the investments in green energy have surged, and has surpassed investments in the fossil fuels by 70%. The report, titled World Energy Investment 2023, attributes this shift to high fossil fuel prices, enhanced policy support, and a growing commitment to addressing climate change. The IEA highlights that for every dollar spent on fossil fuels, $1.7 is now allocated to clean energy, a significant increase from the 1:1 ratio observed five years ago. According to the report, the energy sector is expected to witness a total investment of $2.8 trillion in 2023. Out of this amount, over $1.7 trillion will be directed toward clean energy, encompassing renewable power, nuclear energy, grid infrastructure, energy storage, low-emission fuels, efficiency improvements, and electrification projects. The remaining $1 trillion will be allocated to fossil fuels, with coal accounting for 15% of this investment. Despite a declining trend in coal-fired power plant investments, the report highlights a concerning development with 40 GW of new coal plants approved in 2022, the highest figure since 2016. Most of these approvals were in China, reflecting the nation's emphasis on energy security in the wake of electricity market strains and its concurrent deployment of low-emission technologies. The report also underscores the potential for future investments in green energy. If the current investment trajectory continues, aggregate spending by 2030 on low-emission power, grid infrastructure, energy storage, and electrification for end-use purposes will exceed the levels necessary to meet global climate pledges. Notably, the report suggests that investment levels in solar energy could align with the requirements for achieving a 1.5-degree Celsius stabilization in global average temperatures.

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?