Global spending on clean energy technologies is set to hit $2 trillion in 2024, almost double the $1 trillion allocated to fossil fuels, according to an International Energy Agency (IEA) report released on Thursday. Total energy investment worldwide will exceed $3 trillion for the first time according to the report. Despite higher financing costs, investment in clean technologies like renewables, electric vehicles, and nuclear power is bolstered by improving supply chains and lower costs. Emerging and developing economies, excluding China, will see clean energy spending exceed $300 billion for the first time, led by India and Brazil. However, this only represents 15 per cent of global clean energy investment, hindered by high capital costs. The report also highlighted significant disparities, with China, Europe, and the US accounting for over two-thirds of global clean energy investment. China is expected to invest $675 billion in 2024, followed by Europe at $370 billion and the US at $315 billion. Solar PV investment will reach $500 billion, more than all other electricity generation technologies combined. Upstream oil and gas investment will increase by 7 per cent to $570 billion in 2024, primarily driven by national oil companies in the Middle East and Asia. However, clean energy investment by oil and gas companies remains low, at only 4 per cent of their capital spending. Investment in grids will rise to $400 billion in 2024, with battery storage investments reaching $54 billion. However, for every dollar spent on battery storage in advanced economies and China, only one cent is invested in other emerging and developing economies.
