The International Energy Agency~, stated in a report released on Thursday that concerns about energy security, which have been exacerbated by the conflict in Ukraine, and policy backing from wealthy nations are likely to assist investments in clean energy surpass spending on fossil fuels. However, the IEA reported that investments in coal are on track to increase by around 10% in 2023, about six times what it had predicted they should be in order for the world to stop relying on fossil fuels and achieve the emission reduction targets necessary to combat climate change.
Tim Gould, the chief energy economist at the IEA, said during the report’s release on Thursday that “we are in a significantly better place than we were a few years ago.” There is still much work to be done, but there are now some hopeful indicators that we can all embrace. According to the organization’s most recent World Energy Investment report, approximately $2.8 trillion will be invested in energy globally in 2023, of which more than $1.7 trillion is anticipated to go to clean technologies like modern electricity grids, energy storage, low-emissions fuels, and electric vehicles. Coal, gas, and oil—fossil fuels that are a significant source of emissions that contribute to global warming—receive little more than $1 trillion annually.
The fact that energy demand is outpacing supply growth in many regions of the world is a contributing factor in the issue. Additionally, choices about investments in future capacity are frequently influenced by the powerful energy business interests, favoring fossil fuels. According to the research, the demand for coal hit an all-time high in 2022, and 40 gigawatts worth of new coal power plants were approved, the most since 2016—almost all of them in China.
China and advanced economies account for more than 90% of the rise in renewable energy investments, whereas less is spent in less developed countries. According to the report, investments in renewable energy are being hampered in many nations by issues like high lending rates, shoddy electricity grid infrastructure, and ambiguous legislation. China and advanced economies account for more than 90% of the rise in renewable energy investments, whereas less is spent in less developed countries. According to the report, investments in renewable energy are being hampered in many nations by issues like high lending rates, shoddy electricity grid infrastructure, and ambiguous legislation. AP reports.
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