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Solar power investment set to surpass oil, but fossil fuel spending still a concern, Says IEA

The International Energy Agency (IEA) has predicted that investment in solar power will surpass that in oil for the first time this year, marking a significant milestone in the global energy transition. In a recent report on energy investment, the IEA highlighted the accelerating growth of clean energy investments, outpacing spending on fossil fuels. However, the agency also issued a warning that fossil fuel investment is still on the rise, posing a challenge to achieving the goal of net-zero emissions by 2050.

The IEA’s report revealed that annual investment in clean energy is projected to increase by 24 percent from 2021, reaching over $1.7 trillion in 2023. This surge in clean energy investment reflects the rapid advancement of clean technologies and their increasing competitiveness in the market. Conversely, the gain in fossil fuel investment over the same period was only 15 percent, indicating a widening gap between clean energy and fossil fuel funding.

Executive Director of the IEA, Fatih Birol, emphasised the momentum of clean energy in his statement accompanying the report’s release. He acknowledged the positive trajectory of clean energy, stating, “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.” Birol’s remarks highlight the growing recognition of the economic and environmental advantages of renewable energy sources.

While the increase in clean energy investment is encouraging, the IEA raised concerns about the continued rise in fossil fuel investment. This trend undermines global efforts to combat climate change and transition to a low-carbon economy. Achieving the net-zero emissions target by 2050 necessitates a significant reduction in fossil fuel reliance and a corresponding increase in clean energy deployment.

The IEA report serves as a reminder that the energy transition is a critical global priority. Governments, businesses, and investors must prioritise sustainable and clean energy solutions to address climate change effectively. Shifting financial resources away from fossil fuels and redirecting them towards renewable energy infrastructure and technologies is crucial for meeting climate goals and ensuring a sustainable future.

As clean energy investments continue to outpace fossil fuel spending, it is essential for policymakers and industry leaders to seize this opportunity and accelerate the transition to a clean energy economy. By supporting renewable energy projects, implementing supportive policies, and promoting innovation, societies can unlock the full potential of clean energy and make significant progress towards a greener and more sustainable future.