IEA: Global clean energy spending set to hit $2 trillion by 2024

According to a recent report by the International Energy Agency (IEA), global spending on clean energy technologies and infrastructure is expected to reach a staggering $2 trillion by 2024. This projection comes despite the fact that higher financing costs are hindering new projects, particularly in emerging and developing economies.

Report informs via Interfax that the funds will be directed towards advancements in areas such as renewable energy, electric vehicles, nuclear power, low-emission fuels, and electricity distribution and storage systems. The IEA report also highlights that total energy investments this year are set to surpass $3 billion for the first time, with investments in clean energy and energy grids exceeding the amount spent on fossil fuels.

However, the IEA emphasizes the low level of clean energy spending in developing economies (excluding China), including India and Brazil. Although their investment volume may surpass $300 billion by 2024, this will only account for about 15% of the global figure. This amount falls far short of what is required to meet the growing energy demand in many of these countries, where the high cost of attracting financing is hindering the development of new projects.

The IEA forecasts that China's clean energy investments could grow to $675 billion this year, while Europe and the United States are expected to invest $370 billion and $315 billion, respectively. Meanwhile, global investments in oil and natural gas extraction are anticipated to increase by 7% (to $570 billion) in 2024, mirroring last year's growth.