Investment in Fossil Fuels Rises, Jeopardizing Net Zero Goals
Despite positive strides in clean energy investment, the International Energy Agency (IEA) issues a warning that the investment in fossil fuels is increasing instead of declining as necessary to achieve net zero emissions by 2050.
Clean Energy Surges Ahead, Outpacing Fossil Fuels
IEA Executive Director Fatih Birol emphasizes the rapid progress of clean energy, surpassing the expectations of many. The agency’s latest report on energy investment reveals a clear trend where clean technologies are pulling ahead of fossil fuels. In fact, annual investment in clean energy is projected to rise by 24% from 2021, surpassing $1.7 trillion in 2023. In contrast, investment in fossil fuels increased by 15% during the same period.
Solar Investment Shines Brightly
A noteworthy example of clean energy’s ascent is the investment in solar power, which is set to surpass investment in oil production for the first time. The IEA expects investment in solar power, specifically photovoltaic panels, to reach $380 billion this year, while investment in oil exploration and extraction is projected to be $370 billion. This accomplishment positions solar power as a true energy superpower, as stated by Dave Jones, head of data insights at the energy think tank Ember.
Challenges in Rebounding Fossil Fuel Investment
While clean energy progresses, there is concern regarding the rebound in oil and gas investment, which is expected to return to 2019 levels this year. This upward trend further deviates from the IEA’s 2050 net zero trajectory. In fact, the IEA anticipates that fossil fuel investment in 2023 will exceed double the amount that the sector should be spending by 2030, with coal potentially reaching six times the recommended level.
Disparities in Clean Energy Investment and Corporate Commitment
The IEA highlights the concentration of clean energy investment in advanced nations and China, while the largest increases in fossil fuel investment are observed in Middle Eastern nations. It is ironic that some of the sunniest regions in the world have the lowest levels of solar investment, requiring attention to address this imbalance. Additionally, major energy companies are not allocating significant funds to the transition to green energy. Only 5% of their cash flow in the previous year was dedicated to low-carbon and renewable energies or carbon capture projects, a mere quarter of the total payout to shareholders.
SOURCE: Ref – france24
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