(Tiper Stock Exchange) – Global investment in green energy they will rise to $1.7 trillion in 2023with the solar destined to eclipse for the first time the production of petrolium. According to a report by the International Energy Agency, investments in clean energy technologies are significantly exceeding spending on fossil fuels.
Of the approximately $2.8 trillion in energy investments projected in 2023, globally, over $1.7 trillion they should be intended to clean technologies, including renewable energy, electric vehicles, nuclear energy, networks, storage, low-emission fuels, energy efficiency improvements and heat pumps. The rest, even just over a trillion dollarswill go for i fossil fuels (coal, gas and oil).
It is estimated that the annual investments in clean energy they are increased by 24% between 2021 and 2023driven by renewable sources and electric vehicles, compared to a 15% increase of investments in fossil fuels recorded in the same period. But over 90% of this increase comes from from advanced economies and Chinawith the risk of create new inequalities in the energy field. The largest shortfalls in clean energy investment are seen in emerging and developing economies.
“Clean energy is moving fast, faster than many people realize. This is evident in the investment trend, where clean technologies are diverging from fossil fuels,” said the director of the IEA Fatih Birolsuggesting that “for every dollar invested in fossil fuels, about $1.7 now goes to clean energy,” whereas “five years ago, this ratio was one to one.”
“A prime example is investing in solar – says Birol – which is intended to overcome for the first time the amount of investment intended for the production of petrolium“.
Investments in clean energy have been stimulated by a number of factors in recent years – explains the IEA – including strong periods economic growth And volatile prices of the fossil fuels they raised energy security concerns, especially after the Russian invasion of Ukraine. Also strengthening political support through important actions such as the US Inflation Reduction Act and the initiatives in Europe, Japan, China have played a decisive role.
Spending on upstream oil and gas should increase by 7% in 2023bringing it back at 2019 levels. The few oil companies that are investing more than before the Covid-19 pandemic are major national oil companies in the Middle East. Many fossil fuel producers made record profits last year on rising fuel prices, but most of this cash flow went to dividends, share buybacks and debt repayments, rather than going back to supply traditional.
However, this implies that the investments in fossil fuels they will be more than double the levels expected in 2030 from the IEA’s Net Zero Emissions scenario, while global coal demand hit an all-time high in 2022 and investment this year is expected to reach nearly six times the levels projected in 2030 under the Net Zero scenario.
“Much more needs to be done by the international communityespecially to target investment in low-income economies where the private sector is reluctant to venture,” the IEA concludes.