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Global energy investment to rise 10% in 2021

In 2021, investment in the energy sector will rise to $1.9 trillion, up more than 10% from 2020, bringing total investment in the energy sector back to pre-crisis levels. The primary focus is now on investments in the end-user sector, away from conventional energy production. Global energy consumption will increase again in 2021 to 4.6%. This compares with a 4% decline in 2020.

Despite the troubled situation in which numerous energy companies find themselves, many want to invest in existing and new projects. Many governments are incentivizing this through their loose monetary policies and government subsidies.

Even though the situation of the countries shows significant differences, the outlook for investments combined with economic growth is much more positive.

Source: IEA International Energy Agency

So, in summary, economic recovery and shifts in capital flows to clean energy alternatives are the main drivers of the recovery. Even as capital flows have changed, and the green energy sector continues to accumulate more capital, carbon emissions are on the rise after posting their steepest annual decline ever in 2020.

Article Source: IEA International Energy Agency (2021), World Energy Investment 2021, p. 6-7

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