…..analysts forecast $382bn spending on solar in 2023
The International Energy Agency (IEA) has predicted that investment in clean energy will extend its lead over spending on fossil fuels this year, with solar projects expected to surpass funding commitments on oil production for the first time.
The Paris-based energy industry watchdog made this projection on Thursday in its World Energy Investment report.
Commenting on the report findings, the IEA Executive Director, Fatih Birol, said: “Clean energy is moving fast – faster than many people realize.
“For every dollar invested in fossil fuels, about 1.7 dollars are now going into clean energy. Five years ago, this ratio was one-to-one”, he added.
According to available statistical data, yearly investment in renewable energy rose by nearly a quarter since 2021 compared to a 15% rise for fossil fuels.
A news report from Reuters indicates that around 90% of that clean energy spending comes from advanced economies and China, however, highlighting the global divide between rich and poor countries as fossil fuel investment is still double the levels needed to reach net-zero emissions by mid-century.
The report also indicates that around $2.8 trillion is set to be invested in energy worldwide in 2023, of which more than $1.7 trillion is expected to go to renewables, nuclear power, electric vehicles, and efficiency improvements.
The news medium further clarified that the rest, or around $1 trillion, would go to oil, gas and coal, demand for the last of which will reach an all-time high or six times the level needed in 2030 to reach net zero by 2050.
It noted that current fossil fuel spending was significantly higher than what it should be to reach the goal of net zero by mid-century, the agency said.
According to the news medium, in 2023, solar power spending is due to hit more than $1 billion a day or $382 billion for the year, while investment in oil production will stand at $371 billion.
Reuters quoted Ember’s head of data insights, Dave Jones, as stating that “this crowns solar as a true energy superpower. It is emerging as the biggest tool we have for rapid decarbonisation of the entire economy.”