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Global spending on solar energy is expected to overtake oil for the first time in 2023 in the wake of tremendous growth of clean energy, according to a new report released by International Energy Agency (IEA) on May 25.
Annual renewables investment has risen nearly a quarter since 2021, much faster than 15% of the investment in fossil fuels over this period; and an estimated 90% of clean energy investments are from developed countries and China, showed the report titled World Energy Investment 2023 (WEI 2023) released by IEA.
The report forecast global investment in energy will reach $2.8 trillion this year, more than $2.6 trillion in 2022. Clean energy investment is expected to reach $1.7 trillion, while fossil fuel $1.1 trillion.
Net carbon dioxide emissions, however, are still double the level needed to net-zero emissions by mid-century, further underlining the contradiction of energy development between rich and poor countries.
IEA was quoted by Reuters as saying current spending on fossil fuel is more than twice the level needed to reach net-zero by 2050, and even the current coal investment is almost six times the level needed in 2030 to reach net zero by 2050.
The agency stated that the expenditure on fossil fuel at present is noticeably higher than what is required to achieve the goal of net zero by mid-century, and investment in new fossil fuel supplies in 2023 will increase 6% year on year to $950 billion.
Ironically, the sunniest regions in the world have the lowest levels of solar energy investment, said the agency. Global average daily spending on solar energy is expected to over $1 billion, and annual spending around $380 billion, the IEA added.
(Writing by Riley Liang Editing by Harry Huo)
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