The International Energy Agency has projected for global energy investments to reach about $2.8 trillion in 2023, more than 60% of which or $1.7 trillion, will be spent on renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps. The rest of the investments will go to coal, gas, and oil. Of note is that solar investments look to outpace oil production for the first time.
Clean and sustainable options seem to have been taken because of affordability and security concerns triggered by the global energy crisis. Annual clean energy investment is expected to rise by 24% between 2021 and 2023, driven by renewables and electric vehicles, compared with a 15% rise in fossil fuel investment over the same period. But more than 90% of this increase comes from advanced economies and China, presenting a serious risk of new dividing lines in global energy if clean energy transitions don’t pick up elsewhere.