According to the International Energy Agency report, the global energy investment is expected to swell to $2.4 trillion, up 8%, with the anticipated rise coming mainly in clean energy.
Encouraging, but the investment is still far from enough to tackle the current energy crisis, the report added. See the complete report here.
"A massive surge in investment to accelerate clean energy transitions is the only lasting solution. This kind of investment is rising, but we need a much faster increase to ease consumer pressure from high fossil fuel prices, secure our energy systems, and get the world on track to reach our climate goals," said IEA Executive Director Fatih Birol.
"As things stand, today's energy investment trends show a world falling short on climate goals and reliable and affordable energy," the report said. The rise in clean energy spending is not evenly spread, with most occurring in advanced economies and China.
However, supply chain challenges also play a large part in the headline rise in investment. Almost half of the overall increase in spending reflects higher labor & services, and materials costs.
Oil & gas prices have soared since Russia invaded Ukraine. In some markets, energy security concerns and high prices are prompting higher investment in fossil fuel supplies, most notably coal.
Oil & gas investments rose 10% in 2021 but remain below pre-Covid levels. Investment in coal supply rose 10% in 2021 and is expected to rise by a similar amount in 2022, despite pledges to move away from the fuel.
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