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.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement