Growth in global investments in clean energy: solar power will reach 500 billion dollars in 2024.

In 2024, global spending on clean energy technologies and infrastructure is expected to reach 2 trillion dollars, despite the challenges posed by higher financing costs that hinder new projects, especially in emerging and developing economies.

A new report from the IEA highlights that, despite financial pressures, global investments in clean energy will be almost double those allocated to fossil fuels, thanks to improvements in supply chains and reductions in the costs of clean technologies.

Energy Investments: A New Record

According to the latest edition of the IEA's annual World Energy Investment report, total global energy investments will exceed 3 trillion dollars for the first time in 2024. Of this, about 2 trillion dollars will be allocated to clean technologies such as renewable energy, electric vehicles, nuclear power, grids, storage, low-emission fuels, and energy efficiency improvements.

The remaining 1 trillion dollars will be invested in coal, gas, and oil. In 2023, combined investments in renewable energy and grids surpassed fossil fuel spending for the first time.

The report emphasizes that significant imbalances and deficiencies persist in energy investment flows in many parts of the world. In particular, in emerging and developing economies (excluding China), spending on clean energy is set to exceed 300 billion dollars for the first time.

However, this represents only 15% of global clean energy investments, well below what is needed to meet the growing energy demand in these countries, where high capital costs are hindering the development of new projects.

Global Clean Energy Investments: China to Represent the Largest Share

Since the Paris Agreement in 2015, combined investments in renewable and nuclear energy for electricity generation have been twice those allocated to fossil fuels. In 2024, this figure is expected to increase tenfold, with photovoltaic solar power leading the energy sector transformation.

Today, investments in photovoltaic solar power exceed those in all other electricity generation technologies, and in 2024, such investments are expected to reach 500 billion dollars, driven by falling module prices.

China is set to represent the largest share of clean energy investments in 2024, with an estimated 675 billion dollars, thanks to strong domestic demand for solar, lithium batteries, and electric vehicles. Europe and the United States follow, with investments of 370 and 315 billion dollars, respectively.

These three economies account for more than two-thirds of global clean energy investments, highlighting disparities in international capital flows in the energy sector.