LONDON, June 3 (Reuters): Investment in clean energy will extend its lead over spending on fossil fuels in 2023, the International Energy Agency said recently, with solar projects expected to outpace outlays on oil production for the first time.
Annual investment in renewable energy is up by nearly a quarter since 2021 compared to a 15 per cent rise for fossil fuels, the Paris-based energy watchdog said in its World Energy Investment report.
Around 90 per cent of that clean energy spending comes from advanced economies and China, however, highlighting the global divide between rich and poor countries as fossil fuel investment is still double the levels needed to reach net-zero emissions by mid-century.
"Clean energy is moving fast - faster than many people realise," said IEA Executive Director Fatih Birol.
"For every dollar invested in fossil fuels, about 1.7 dollars are now going into clean energy. Five years ago, this ratio was one-to-one."
Around $2.8 trillion is set to be invested in energy worldwide in 2023, of which more than $1.7 trillion is expected to go to renewables, nuclear power, electric vehicles, and efficiency improvements.
The rest, or around $1 trillion, will go to oil, gas and coal, demand for the last of which will reach and all-time high or six times the level needed in 2030 to reach net zero by 2050.
Current fossil fuel spending is significantly higher than what it should be to reach the goal of net zero by mid-century, the agency said.
