The Strategist

IEA forecasts 7.7 percent hike in global energy investments

05/25/2023 - 10:29

According to the IEA, global energy investments will amount to $2.8 trillion in 2023.

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A new annual study from the International Energy Agency (IEA) shows that global energy investment will increase 7.7 percent to $2.8 trillion this year, with solar energy investment overtaking oil production for the first time.

"In 2023, the global energy market is predicted to receive investments of around $2.8 trillion, of which more than $1.7 trillion is anticipated to go to clean technologies, such as renewable energy, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency enhancements, and heat pumps...The remaining amount, or little over $1 trillion, is spent on coal, gas, and oil, according to the IEA.

The IEA expects that energy investments will total $2.6 trillion in 2022 ($1.6 trillion for renewable energy and $1 trillion for fossil fuels). As a result, 7.7% growth in investment is expected for 2023.