In a recent report, the International Energy Agency (IEA) has projected that global energy investment will reach an impressive $2.8 trillion by 2023. However, the allocation of these funds is raising concerns among advocates of a sustainable future. While clean energy technologies such as electric vehicles (EVs), renewable energy, and energy storage are set to receive over $1.7 trillion in investment, the IEA anticipates that coal, gas, and oil will attract slightly more than a trillion dollars this year.
The 2023 Global Energy Investment Report released by the IEA underscores the stark reality that investment in fossil energy surpasses the required level to meet the clean energy investment budget necessary for achieving zero greenhouse gas emissions by 2050 (NZE 2050). The report highlights the pressing need to redirect financial resources towards clean energy alternatives in order to align with global climate goals.
The detrimental impact of fossil fuels on the environment is well-documented. The United Nations (UN) has identified human activity, particularly the burning of coal, oil, and gas since the 19th century, as a significant contributor to climate change. The IEA’s latest findings emphasize the urgency of transitioning away from fossil fuels to mitigate the devastating consequences of global warming.
The IEA report draws heavily from the objectives outlined in the 2015 Paris Agreement, which seeks to limit global warming to below 2°C, preferably targeting a 1.5°C increase compared to pre-industrial levels. Achieving the 1.5°C target is contingent upon reducing net carbon dioxide emissions to zero by 2050.