Global spending on clean energy technologies and infrastructure is on track to hit $2tr in 2024 even with higher financing costs.

The IEA is predicting that despite these pressures on financing, global investment in clean energy is set to reach almost double the amount going to fossil fuels in 2024, helped by improving supply chains and lower costs for clean technologies.

Total energy investment worldwide is expected to exceed $3tr in 2024 for the first time, with some $2tr set to go toward clean technologies – including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps – according to the latest edition of the IEA’s annual World Energy Investment report. The remainder, slightly over $1tr, is still going to be going to coal, gas and oil.

The new report highlights the low level of clean energy spending in emerging and developing economies (outside China) will account for only about 15 per cent of global clean energy investment, far below what is required to meet growing energy demand in many of these countries, where the high cost of capital is holding back the development of new projects.

“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy. For every dollar going to fossil fuels today, almost two dollars are invested in clean energy,” said IEA executive director Fatih Birol.

China is set to account for the largest share of clean energy investment in 2024, reaching an estimated $675bn. This results from strong domestic demand across three industries in particular solar, lithium batteries and electric vehicles. Europe and the US follow, with clean energy investment of $370bn and $315bn respectively.

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