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Study: More investment in clean energy

Study: More investment in clean energy

Investments in renewable energies already go beyond those in fossil energies. Now it is time to compensate for deficits in emerging and developing countries.

According to a study by the International Energy Agency (IEA), investments in clean energy technologies now significantly exceed expenditure on fossil fuels. In 2023, around 2.8 trillion dollars would be invested in energy worldwide, of which more than 1.7 trillion dollars would flow into clean technologies, the IEA announced in Paris. This involves investments in renewable energies, electric vehicles, nuclear energy, grids, storage, low-emission fuels, efficiency improvements and heat pumps. The rest of the $1 trillion in investment went into coal, gas and oil.

“Clean energy is developing fast – faster than many people realize. This is clearly reflected in investment trends where clean technologies are overtaking fossil fuels,” said IEA Director Fatih Birol. “For every dollar invested in fossil fuels, about $1.7 goes into clean energy now. Five years ago, that ratio was one to one.” An example is investment in solar energy, which for the first time has surpassed investment in oil production.

But more than 90 percent of the surge in clean energy investment has come from advanced economies and China, according to the IEA study. As a result, there is a risk that new dividing lines will emerge in the global energy industry. The largest deficits in clean energy investment are in emerging and developing countries. There are some bright spots, such as investments in solar energy in India and in renewable energy in Brazil and parts of the Middle East.

In many countries, however, investments are slowed down by higher interest rates, unclear political framework conditions or a weak network infrastructure. The international community still needs to do much more, especially to encourage investment in low-income countries where the private sector has been reluctant to get involved, the IEA warned.

Source: Stern

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