Global energy investment is set to increase by 8% in 2022 to reach US$2.4 trillion, mainly in clean energy, according to the International Energy Agency (IEA).
The agency said in a statement that although encouraging, the growth investment was still far from enough to tackle the multiple dimensions of today’s energy crisis and pave the way for a cleaner and more secure energy future.
In its World Energy Investment 2022 report, IEA said the fastest growth in energy investment was coming from the power sector — mainly in renewables and grids — and from energy efficiency.
It said the rise in clean energy spending was not evenly spread, however, with most of it taking place in advanced economies and China.
And in some markets, energy security concerns and high prices were prompting higher investment in fossil fuel supplies, most notably on coal.
IEA executive director Fatih Birol said the world could not afford to ignore either today’s global energy crisis or the climate crisis.
“But the good news is that we do not need to choose between them — we can tackle both at the same time. A massive surge in investment to accelerate clean energy transitions is the only lasting solution.
“This kind of investment is rising, but we need a much faster increase to ease the pressure on consumers from high fossil fuel prices, make our energy systems more secure, and get the world on track to reach our climate goals,” he said.
IEA said clean energy investment grew by only 2% a year in the five years after the Paris Agreement was signed in 2015.
But it said since 2020, the pace of growth had accelerated significantly to 12%.
It said spending had been underpinned by fiscal support from governments and aided by the rise of sustainable finance, especially in advanced economies.
Renewables, grids and storage now accounted for more than 80% of total power sector investment.
Spending on solar photovoltaic, batteries and electric vehicles was now growing at rates consistent with reaching global net-zero emissions by 2050.
