Solar investments outshine oil: IEA

Global investments in clean energy technologies are set to exceed $1.7 trillion in 2023 with solar set to eclipse oil production spending for the first time, the International Energy Agency (IEA) said.

In a forecast on how the energy transition is progressing, the IEA’S World Energy Investment Report said solar investments are expected to attract over $1 billion a day in 2023.

Fatih Birol, the IEA’S executive director, said on Thursday that investment in solar was set to overtake the amount of investment going into oil production for the first time. “Today’s fossil fuel investment spending is now more than double the levels needed in the Net Zero Emissions by 2050 Scenario,” he said.

About $2.8 trillion is expected to be invested globally in energy in 2023, of which $1.7 trillion is expected to go to clean technologies – including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements, and heat pumps – the report said. The remainder, slightly more than $1 trillion, is going to coal, gas, and oil.

“Clean energy is moving fast – faster than many people realise. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels,” said Birol. “For every dollar invested in fossil fuels, about $1.7 are now going into clean energy. Five years ago, this ratio was one-to-one. One shining example is an investment in solar, which is set to overtake the amount of investment going into oil production for the first time.”