• In 2023 about 2.8 trillion US dollars are to be invested in energy
• Investment for solar energy in 2023 at around 382 billion US dollars
• “Clean energy is developing fast – faster than many people think”
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Clean energy eclipses fossil fuels
As the International Energy Agency (IEA) explains in a report, investment in clean energy technologies will significantly exceed spending on fossil fuels. This is because affordability and security concerns triggered by the global energy crisis are fueling the momentum in favor of more sustainable options. Around 2.8 trillion US dollars are to be invested in energy in 2023. Of that, more than $1.7 trillion is expected to go to clean technologies — including renewable energy, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency gains and heat pumps, according to the IEA’s latest World Energy Investment Report. However, the remaining approximately one trillion US dollars flow into coal, gas and oil.
Solar energy beats oil production for the first time
Solar energy spending alone will reach more than $1 billion per day in 2023, or $382 billion for the entire year. According to the IEA, investment in oil production will reach around 371 billion US dollars this year. “This crowns solar power as a true energy superpower. It’s emerging as the greatest tool we have for rapidly decarbonizing the entire economy,” Dave Jones, head of data analytics at Ember, said in a statement, according to Reuters. “The irony is that some of the sunniest places in the world have the lowest investments in solar energy.”
Coal demand at all-time high last year – zero emissions scenario exceeded
Between 2021 and 2023, annual investments in clean energy are expected to increase by 24 percent, according to the IEA. However, annual growth in fossil fuels over the same period is still 15 percent. Industrialized countries and China account for more than 90 percent of this, which illustrates the global gap between rich and poor countries. The expected rebound in fossil fuel investment also means that by 2023 it will increase to more than double the IEA’s 2030 zero emissions scenario. Global coal demand, for example, hit an all-time high in 2022, and coal investment this year is set to reach almost six times the level projected in the 2030 net-zero scenario.
“Clean energies are developing faster than many realize”
IEA Executive Director Fatih Birol explains that clean energy is developing fast – even faster than many people realize. This would also be illustrated by the fact that investment trends in clean technologies are increasingly outstripping fossil fuels. “For every dollar invested in fossil fuels, about $1.7 now goes to clean energy. Five years ago, that ratio was one to one. A shining example is investments in solar energy, which for the first time Investments in oil production will be exceeded,” Birol said, according to the “Tagesschau”. Led by solar power, low-emission technologies are expected to account for nearly 90 percent of power generation investments. Consumers are also investing in more electrified end users. Global sales of heat pumps have been growing in double digits every year since 2021, for example. Electric vehicle sales are expected to grow by a third this year, following strong growth last year.
Editorial office finanzen.net
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