IEA: : Investment in Solar Energy Is expected To Supass That Of Oil Production For The First Time Due To The Rapid Development Of Clean Energy

Recently, the International Energy Agency (IEA) released its latest report, World Energy Investment 2023. The report showed that with the rapid development of clean energy, solar projects will surpass the investment in oil production for the first time.

The total global energy investment in 2023 is expected to reach 2.8 trillion US dollars, with clean energy investment projected to rise by 24% compared to 2021, reaching over 1.7 trillion US dollars. The increase in fossil fuel investment during the same period was 15%, reaching $1.1 trillion according to the IEA.

Annual clean energy investment is expected to rise by 24% between 2021 and 2023, powered by renewable and electric vehicles, compared with a 15% rise in fossil fuel investment over the same period.But more than 90% of this increase comes from advanced economies and China, presenting a serious risk of new dividing lines in global energy if clean energy transitions don’t pick up elsewhere, the report added.

“Clean energy is moving fast — faster than most people realize,” said IEA executive director Fatih Birol. It is obvious in the investment trend. “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”which is set to overtake the amount of investment going into oil production for the first time."

The IEA predicts that investment in solar energy mainly refers to photovoltaic panels will reach $380 billion this year, while investment in oil exploration and extraction will reach $370 billion.

IEA warns that many fossil fuel producers have created record-breaking profits due to the rise in fuel prices last year, and investment in fossil fuel is also rising. However, fossil fuel investment is still double the level it needs to fall to if the world is to achieve net-zero emissions by mid-century,which means that fossil fuels will rebound in 2023.

The IEA also pointed out that clean energy investment is focused on the developed countries and China, while the largest increase in fossil fuel investment is in Middle Eastern countries.