Solar to Overtake Oil Investments For First Time Ever

What's the story?

• According to the Paris-based International Energy Agency (IEA), solar energy investments will overtake oil investments for the first time this year and is due to hit more than $1 billion a day.

What are the statistics?

• Annual investment in renewable energy has grown by nearly 25% since 2021, compared with a 15% rise for fossil fuels. Experts expect low-emissions technology, like solar and wind, to account for 90% of investment in power generation in the coming years.
• It is estimated that around $2.8 trillion will be invested in energy worldwide in 2023, with over $1.7 trillion of this investment anticipated to go to renewables and nuclear power. Similarly, global sales of electric vehicles are expected to grow by one-third this year.
• The IEA points to the affordability and security concerns triggered by the global energy crisis as a factor motivating the surge in investments in energy technology.

What are people saying?

• Faith Birol, the executive director of IEA, said:

"Clean energy is moving fast - faster than many people realize. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels. For every dollar invested in fossil fuels, about $1.7 (€1.58) is now going into clean energy. Five years ago, this ratio was one-to-one."

• Dave Jones, from the think tank Ember, advocating for clean energy, said:

"This crowns solar as a true energy superpower. It is emerging as the biggest tool we have for rapid decarbonization of the entire economy." 

What's next?

• Despite the growth of alternative energy, fossil fuel investment is still twice the level needed for the world to achieve net-zero emissions by mid-century.
• Investment in new fossil fuel supply is still rising and will grow by 6% in 2023 to $950 billion globally.

Is the U.S. doing enough to invest in low-emission technology?

-Emma Kansiz