Global spending on clean energy is set to reach $2 trillion in 2024, despite higher financing costs hindering new projects in emerging economies

Despite financial pressures, global investment in clean energy is projected to nearly double the amount allocated to fossil fuels in 2024, according to a new IEA report. Total energy investment worldwide is expected to exceed $3 trillion for the first time, with around $2 trillion going toward clean technologies such as renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements, and heat pumps. In contrast, slightly over $1 trillion will be directed toward coal, gas, and oil. Notably, 2023 marked the first year where investment in renewable power and grids surpassed fossil fuel expenditure.

The report highlights significant disparities in energy investment, particularly the low level of clean energy spending in emerging and developing economies outside China. Investment in these regions, led by India and Brazil, is set to surpass $300 billion for the first time but still only represents about 15% of global clean energy investment, insufficient to meet growing energy demands. High capital costs hinder the development of new projects in these areas. IEA Executive Director Fatih Birol emphasized the need for increased investment in these regions to ensure affordable, sustainable, and secure energy access, despite the strong overall momentum behind clean energy investments.

China is poised to lead clean energy investment in 2024, with an estimated $675 billion driven by strong domestic demand in solar, lithium batteries, and electric vehicles. Europe and the United States follow with investments of $370 billion and $315 billion, respectively. These three economies account for more than two-thirds of global clean energy investment, highlighting the international disparities in capital flow. Meanwhile, global upstream oil and gas investment is expected to rise by 7% to $570 billion in 2024, with national oil companies in the Middle East and Asia driving this growth. Despite the challenges, investment in grids and electricity storage is increasing, with grid spending set to reach $400 billion and battery storage investments expected to hit $54 billion in 2024.