Overview and Key Findings: World Energy Investment 2024 Analysis - IEA

Key Insights

• Global Investment Trends:

  • Clean energy investments now almost double those in fossil fuels.
  • Global energy investment is anticipated to exceed USD 3 trillion in 2024, with USD 2 trillion for clean energy technologies and infrastructure.
  • Investment in solar photovoltaics (PV) exceeds investments in all other generation technologies.

• Regional Investment Disparities:

  • Emerging Market and Developing Economies (EMDE) outside China only account for ~15% of global clean energy spending.
  • Investments in clean energy have increased by over 50% since 2020 in EMDE, driven by developments in India, Brazil, and parts of Southeast Asia and Africa.

Investment Breakdown

• Clean Energy:

  • Solar PV investments slated to reach USD 500 billion in 2024.
  • Nuclear investments forecasted to grow, with USD 80 billion expected in 2024.
  • Grid and storage investment anticipated to hit USD 400 billion by 2024.
  • Battery storage spending is concentrated, expected to exceed USD 50 billion in 2024.

• Fossil Fuels:

  • Upstream oil and gas investment to increase by 7% to USD 570 billion in 2024.
  • Middle Eastern and Asian companies dominate new oil and gas investments.
  • LNG projects led by the US and Qatar to boost capacity by 50%.

Financing and Policy Influence

• Sector Financing:

  • Major investments driven by private sector, with significant roles for governments and SOEs, particularly in EMDE.
  • Households becoming key players in clean energy investments.

• Challenges and Opportunities:

  • High financing costs pose major challenges, particularly in EMDE.
  • Sustainable finance trends are fluctuating, with a decrease in sustainable debt issuances.

Future Goals and Challenges

• Net Zero Emissions Scenario:

  • A major rebalancing of investments is needed to shift away from fossil fuels.
  • Investment in renewable capacity needs to triple by 2030 to meet climate goals.

• Required Actions:

  • Doubling of clean energy investment by 2030 necessary, with quadrupling needed in EMDE outside China.
  • Enhanced support from Development Finance Institutions (DFIs) crucial to lower financing costs and attract private capital.

Conclusion

• The report highlights the need for increased investments in clean energy globally, with a special focus on emerging economies.
• Strategic policy support and financial mechanisms are essential to meet the ambitious targets set for clean energy transition and climate goals.