IEA predicts $2 trillion in global clean energy investments by 2024

By Oliver Townsend Jun 6, 2024
IEA expects global clean energy investment to hit $2 trillion in 2024.jpegOrginal image from:

The International Energy Agency (IEA) is anticipating a significant milestone in global clean energy investment, with expectations set at a staggering $2 trillion in 2024. This projection, revealed in the IEA’s annual World Energy Investment report, highlights a monumental shift towards clean energy technologies and infrastructure. Surpassing the $3 trillion mark in total energy investment for the first time, the report indicates that clean energy investments will outpace those going into fossil fuels.

The Rise of Clean Energy Investment

In a notable turn of events, renewable power and grids are poised to receive more investment than fossil fuels for the first time in 2023, signaling a pivotal moment in the energy transition. This shift is driven by various factors such as the economic viability of clean energy, continued cost reductions, and considerations for energy security. IEA Executive Director Fatih Birol emphasized that for every dollar invested in fossil fuels, nearly two dollars are now allocated to clean energy initiatives.

Regional Investment Trends

China is expected to lead the clean energy investment charge in 2024, with an estimated $675 billion directed towards clean technologies. Following closely behind, Europe is projected to invest $370 billion, while the United States is slated to allocate $315 billion towards clean energy endeavors. Solar photovoltaic (PV) technology will receive a substantial portion of the investment, with an expected $500 billion in funding due to declining solar module prices.

Challenges and Opportunities

While the global clean energy landscape is experiencing significant growth, challenges remain in certain regions, especially in emerging and developing economies outside of China. The report highlights the need for increased energy investments in these areas to facilitate a more equitable energy transition. Despite this, the IEA’s report underscores the substantial progress made in clean energy investment and the momentum driving the shift towards a more sustainable energy future.

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