This year's edition of World Energy Investment provided a thorough update, via a report on the investment landscape in 2022 and an initial reading of the emerging scenario for 2023.
The result of World Energy Investment points out that investment in clean energy technologies is significantly outpacing spending on fossil fuels, driven by the search for more sustainable options and concerns about accessibility and energy security. According to the International Energy Agency (IEA – acronym in English), it is estimated that around US$ 2.8 trillion will be invested globally in energy in 2023, with more than US$ 1.7 trillion destined for clean technologies such as renewable energy, electric vehicles, storage and efficiency energy.
The report highlights the crucial role of renewable energies, led by solar energy, which are driving low-emission electricity technologies. These technologies are expected to account for nearly 90% of the power generation investment. In addition, consumers are increasingly investing in more electrified end-uses such as heat pumps and electric vehicles.
The report warns that more than 90% of this increase in clean energy investment is in advanced economies and China, which could create divisions in the global energy landscape if other regions do not accelerate their clean energy transitions.
While clean energy investments are on the rise, spending on oil, gas and coal still represents a significant portion of global energy investment. The expected recovery in investment in fossil fuels could exceed the levels needed to reach the net zero emissions targets by 2050 set out in the Paris Agreement.
One of the main concerns highlighted by the report is the lack of investment in clean energy in emerging and developing economies. While some countries, such as India and Brazil, are making dynamic investments in solar and renewables, many others face challenges such as high interest rates, poor grid infrastructure, and a lack of political and market clarity.
The report underscores the importance of a concerted effort by the international community to boost investment in clean energy, especially in low-income economies where the private sector has been reluctant to get involved. These actions are crucial to accelerating the global transition to a more sustainable energy matrix and tackling the climate crisis.
As you approach the COP28, the next United Nations Climate Change Conference, in late 2023, it is crucial to renew the commitment to boost investments in clean energy globally, aiming to create a more sustainable and resilient future.
