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.