Renewable energy sources are expected to attract $2tn globally in 2024 out of the total $3tn energy investment projected for the year, a report by the International Energy Agency has revealed.
According to the IEA, total energy investment worldwide is expected to top $3tn for the first time.
“Some $2tn is expected to flow towards clean technologies such as renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps. The remainder – slightly over $1tn – is set to go to coal, gas and oil,” the report said.
It disclosed that despite pressures on financing, global investment in clean energy was set to reach almost double the amount going to fossil fuels in 2024, saying that was helped by improving supply chains and lowering costs for clean technologies.
However, the energy agency stated that even as spending on clean energy broke records, there were still major imbalances and shortfalls in energy investment in many parts of the world.
It stated that China, which was seeing strong domestic demand for solar, lithium batteries and electric vehicles, was set to account for the largest share of clean energy investment this year, reaching an estimated $675b.
Europe and the United States follow, with clean energy investments of $370bn and $315bn, respectively.
“These three major economies alone make up more than two-thirds of global clean energy investment,” the report revealed.
In emerging and developing economies, clean energy investment in 2024 is reportedly set to surpass $300bn for the first time, led by Brazil and India.
