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Investments in photovoltaics are expected to exceed $500 billion in 2024, an unprecedented amount. This surpasses the sums invested in fossil fuels such as oil and gas, as well as in wind, nuclear, and hydroelectric power. In 2023, solar investment already reached $480 billion.
"Global investments in clean energy are expected to nearly double compared to fossil fuels in 2024, thanks to improved supply chains and lower costs of clean technologies," the IEA report specifies, despite rising interest rates that hinder new projects. Additionally, the cost of photovoltaic panels has decreased by 30% over the past two years.
According to IEA estimates, global investment in clean energy is expected to total $2 trillion in 2024. This includes solar energy, wind, nuclear, electric vehicles, electrical grids and storage, low-carbon fuels, energy efficiency, and heat pumps.
These amounts are twice as high as those allocated to fossil fuels. In 2024, investments for gas and oil extraction and production are expected to reach $570 billion, a 7% increase from 2023. This rise is mainly attributed to oil companies in the Middle East and Asia.
The report highlights that investments in oil and gas in 2024 are generally aligned with the demand levels projected for 2030 by current policies. However, they are much higher than what is predicted by scenarios aiming to meet national or global climate goals, including the Paris Agreement.
"Investments in clean energy are setting new records, even in challenging economic conditions, highlighting the momentum of the new global energy economy," notes Fatih Birol, Executive Director of the IEA.
Last year, for the first time, funding for renewable energy and grids surpassed that for fossil fuels. The IEA estimates that globally, investment needs to double to triple the capacity of renewable energy by 2030.
However, significant disparities persist between countries. Emerging economies, except for China, which has an ambitious energy transition program, will only concentrate $300 billion in 2024 for clean energy, primarily invested by India and Brazil. This represents only 15% of global investment.
In conclusion, investments in solar energy and other clean energy sources are on a significant rise and are expected to reach record levels in 2024. This trend shows positive momentum for the global energy transition despite current economic challenges.