According to the latest International Energy Agency report, global energy investment will reach nearly $2.8 trillion in 2023, of which more than $1.7 trillion will be in clean energy technologies such as EVs, renewables and storage. It is expected to be invested.
The latter figure will be welcomed by proponents of the transition to a sustainable future, but the IEA forecasts that coal, gas and oil are still set to attract “just over” $1 trillion in investment this year. will be disappointed.
The IEA’s 2023 Global Energy Investment Report states that “Today’s fossil fuel investment spending is more than double the levels needed for a net zero emissions scenario by 2050.”
“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. Since the 19th century, the United Nations says, “Human activity, primarily through the burning of fossil fuels such as coal, oil and gas, has been a major contributor to climate change.”
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.
big controversy
In recent years, prominent figures such as UN Secretary-General António Guterres have made their stance on fossil fuels public.
Last June, Mr. Guterres strongly condemned the new funding for fossil fuel exploration. 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 President Bernard Rooney said the company’s strategy centers its investments in hydrocarbons while simultaneously funding the planned energy transition.
Will change come?
While there may be concerns about the flow of money to fossil fuels, IEA Executive Director Fatih Birol tried to emphasize that big changes could be coming.
“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.
“One shining example is investment in solar power, which will overtake investment in oil production for the first time.”
