Despite the strong growth in global energy investment, it has not been sufficient to deal with the climate and energy crisis.
The International Energy Agency (IEA) expects energy-related capital expenditures to grow by eight percent this year compared to 2021 to reach $2.4 trillion (€2,280 billion). This plus is supported by a strong increase in renewables and expansion of the grid.
According to the International Energy Agency, this is encouraging, but not enough. Almost half of the nominal growth is also due to higher costs. The Paris-based organization fears that rising costs for staff, services and materials could hinder real investments.
IEA: Clean energy investments are positive
The International Energy Agency gives a positive assessment of the strong growth in investments in clean energy. After growth rates after the Paris climate agreement were 2% per year for five years, growth rates have been at 12% since 2020.
Besides spending on grid and storage, renewable energies now account for about 80 percent of global energy investment. Spending on photovoltaics, batteries and electric vehicles will grow at a rate consistent with achieving net zero emissions by 2050.
However, investments in clean energy are not evenly distributed, but are concentrated in Western industrialized countries and China. In addition, concerns about energy security and rising prices have also led to increased investments in fossil fuels.
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