Global investment in clean energy technology and infrastructure is projected to reach a record $2 trillion in 2024, twice the amount allocated for fossil fuels, according to the International Energy Agency (IEA). The IEA’s annual World Energy Investment report highlights that total energy investment will exceed $3 trillion for the first time next year.
The $2 trillion dedicated to clean technologies includes investments in renewables, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency improvements, and heat pumps. The remaining investment will be directed towards gas, oil, and coal sectors. Notably, the combined investment in renewable power and grids surpassed fossil fuel spending for the first time in 2023.
China is expected to lead the global clean energy investment with an estimated $675 billion in 2024. Europe and the United States will follow, with investments of $370 billion and $315 billion, respectively. The report indicates that solar photovoltaic (PV) will receive the most investment among electricity generation technologies, projected to reach $500 billion in 2024, driven by decreasing solar module prices.
In contrast, global upstream oil and gas investment is forecasted to rise by 7% to $570 billion in 2024, continuing a similar increase from 2023. This growth is predominantly led by national oil companies in the Middle East and Asia.
Despite these significant investments, the IEA report points out that there are still considerable shortfalls in energy investment in emerging and developing economies outside China. Addressing these gaps is crucial for ensuring a balanced global energy transition.
This report underscores the accelerating shift towards clean energy as the world aims to combat climate change and transition to more sustainable energy systems.
