https://www.miningweekly.com
Coal|Efficiency|Energy|Gas|generation|Industrial|Nuclear|Oil And Gas|Oil-and-gas|Power|Projects|SECURITY|Solar|Storage|supply-chain
Coal|Efficiency|Energy|Gas|generation|Industrial|Nuclear|Oil And Gas|Oil-and-gas|Power|Projects|SECURITY|Solar|Storage|supply-chain
coal|efficiency|energy|gas|generation|industrial|nuclear|oil-and-gas|oilandgas|power|projects|security|solar|storage|supply chain

Investment in clean energy to reach $2tr this year, outpacing investment in fossil fuels

A wind turbine and a fossil fuel-powered plant

Photo by Bloomberg

6th June 2024

By: Bloomberg

  

Font size: - +

Investment in clean energy technologies will climb to $2-trillion this year, almost double the amount spent on fossil fuels, according to the International Energy Agency (IEA).

Two-thirds of the record $3-trillion invested in energy sources in 2024 will be devoted to sectors such as renewables, electric vehicles, nuclear power, grids, storage and efficiency, even as higher financing costs hinder projects, the Paris-based agency said. The remaining $1-trillion will go to coal, gas and oil — a level that’s still too high to conform with global climate goals.

“We’ve reached an important landmark,” IEA executive director Fatih Birol said in an interview as the agency published its annual World Energy Investment report. “Clean energy investment is setting new records even in challenging economic conditions.”

Combined investment in renewable power and grids has overtaken the amount spent on fossil fuels for the first time. Some green projects have been impeded by rising interest rates, but this been offset by “easing supply chain pressures and falling prices,” the IEA said in its report.

The growth is “underpinned by strong economics, by continued cost reductions and by considerations of energy security” heightened by Russia’s invasion of Ukraine, it added.

Solar power is leading power’s sector’s transformation, with investment in the area set to reach $500-billion this year — more than the money flowing into all other electricity generation technologies combined.

Total investment in renewables and nuclear power for electricity generation has reached ten times the amount directed at fossil fuel-fired generation, according to the report. When the Paris agreement on climate change was struck in 2015, that ratio stood at two-to-one.

“We see renewed momentum in nuclear power investments,” Birol added.

DEVELOPING ECONOMIES
China will account for the largest share of clean energy investment, with around $675-billion this year, as a result of strong domestic demand for solar power, lithium batteries and electric vehicles, according to the report. Still, clean energy investment in other emerging and developing economies remains low at about $320-billion, accounting for just 15% of the global total, it said.

Nonetheless, the expansion of fossil fuel demand continues at a pace that leaves the world on track for potentially catastrophic climate change.

Investment in new oil and gas supplies will increase by 7% this year to $570-billion, mostly concentrated in national oil companies in the Middle East and Asia, according to the report.

In order to reach the goal of net zero carbon emissions by 2025 — and limit global temperature increases to 1.5 °C above pre-industrial levels — spending on fossil fuels would need to be halved, while an additional $500-billion a year would need to be spent on renewables.

“When we look at these trends it is definitely encouraging, but they fall short,” Birol warned. “We are far from reaching the 1.5 °C trajectory.”

Edited by Bloomberg

Comments

Showroom

SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Platinum, diamonds, hydrogen make headlines
Platinum, diamonds, hydrogen make headlines
19th July 2024
Magazine round up | 19 July 2024
Magazine round up | 19 July 2024
19th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.181 0.219s - 127pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: