Solar panels installed at a UK facility. According to IEA Director General Fatih Birol, investment in solar power “will overtake investment in oil production for the first time”.
Daniel Leal | AFP | Getty Images
According to the latest report from the International Energy Agency, global energy investment will reach about $2.8 trillion in 2023, of which more than $1.7 trillion will be clean energy such as EVs, renewable energy and storage. It will be invested in technology.
In a sign of how the energy transition is progressing, the IEA’s Global Energy Investment Report said it expects investment in solar power to attract more than $1 billion a day in 2023. .
IEA Director General Fatih Birol said in a statement that investment in solar power “will overtake investment in oil production for the first time.”
Advocates of the transition to a sustainable future will welcome the above, but are warned by the IEA’s forecast that coal, gas and oil are still on track to attract “just over” $1 trillion in investment this year. will be disappointed.
“Today’s investment spending on fossil fuels is more than double the level required for a net zero emissions scenario by 2050,” the IEA report said.
“The coal imbalance is particularly pronounced. Today’s investment is almost six times the 2030 requirement in the NZE scenario,” he added.
The impact of fossil fuels on the environment is significant. The United Nations says that since the 19th century, “human activity has been a major contributor to climate change, primarily through the burning of fossil fuels such as coal, oil and gas.”
The shadow of the 2015 Paris Agreement casts a large shadow over the IEA report. The landmark agreement aims to “keep global warming below 2 degrees Celsius, preferably 1.5 degrees Celsius, compared to pre-industrial levels.”
Reducing anthropogenic carbon emissions to net zero by 2050 is seen as critical to achieving the 1.5 degree Celsius target.
In recent years, prominent figures such as UN Secretary-General António Guterres have made their stance on fossil fuels public.
Last June, Mr. Guterres denounced new funding For exploration of fossil fuels. He called it a “delusion” and called for an end to fossil fuel finance.
Despite these concerns, the oil and gas industry continues to develop projects around the world.
For example, in October 2022, blood pressure Chief Executive Bernard Rooney said his company’s strategy revolves around: Investment in hydrocarbons At the same time, it will fund the planned energy transition.
While there may be concerns about the flow of money to fossil fuels, IEA’s Birol tried to highlight what could be the big changes in the future.
“Clean energy is moving fast, faster than many think,” he said in a statement released alongside the IEA report. “This is evident in the investment trend away from fossil fuels in clean technologies.”
“For every dollar invested in fossil fuels, about $1.7 is now invested in clean energy,” Birol added, explaining that just five years ago the ratio was 1:1.
Others who commented on the IEA’s report included Dave Jones, head of data insights at energy think tank Ember. “This proves that solar power is a true energy superpower,” he said.
“It is emerging as the greatest tool for rapid decarbonization of the entire economy, especially as the use of solar power increases to power vehicles instead of oil,” he added.
“Ironically, some of the sunniest places in the world have the lowest levels of solar investment, which is a sensitive issue.”
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