IEA predicts clean energy investment to exceed $1.4Trn in 2022

According to a recent report published by IEA (International Energy Agency), energy investment worldwide is set to jump around 8% in 2022 and reach $2.4 trillion, with a recorded increase in coal supply chains.

However, much more money will be needed if climate-related objectives are achieved.

As per credible sources, the latest version of the IEA’s World Energy Investment report published recently stated that clean energy investment is expected to surpass $1.4 trillion this year and seize for almost three-quarters of the development in the overall energy investment.

The agency welcomed the move but also warned about the massive amount of work that needs to be undertaken in the future.

It also further notified that the yearly average growth rate in clean energy investment in the five years after the commencement of the Paris Agreement was just 2% in 2015.

However, the rate has surged to 12% since 2020. The IEA defined that being short of what is needed to touch the global climate goals is an important step in the right direction.

Fatih Birol, the IEA’s executive director, highlighted the challenges and opportunities faced by the planet, considering the existing situation.

He further said that the current global energy crisis or climate crisis could not be ignored. However, the good news is that it does not need to choose between them as both can be tackled simultaneously.

Birol added that a huge surge in investment for hastening clean energy transformation is the only lasting solution.

This kind of investment is increasing, but a much faster increase is required to ease the pressure on customers from high fossil fuel costs, make the energy system safer, and get the world on the path for achieving the climate goals.

Source Credit - https://www.cnbc.com/2022/06/22/clean-energy-set-for-1point4-trillion-boost-in-2022-iea-says.html