IEA says clean energy investment will double that of fossil fuels in 2024
Insights from the IEA, Bloomberg, and Science
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Investment in clean energy sources will double that of fossil fuels in 2024, the International Energy Agency said.
Globally, it will surpass $3 trillion this year, with over $2 trillion going toward clean energy, according to the IEA. More than two-thirds of that green investment will be made by China, the US, and Europe, while emerging markets account only for 15% of the total.
SIGNALS
More needs to be done to meet climate goals
While the investment in clean energy is a positive step, the IEA warned that more was needed to meet the goal of limiting global warming to 1.5°C. The focus should be on developing economies, which currently lack “affordable, sustainable and secure energy,” IEA chief Faith Birol said. High financing costs — double that of advanced economies and China — were a major barrier, but support from development finance institutions could help lower them and ultimately attract more private investment. Limited grid capacity and energy storage were also hurdles, helping ensure renewables targets were trending “downward,” said the director of a Greek think tank.
Governments urged to stop issuing licenses for fossil fuel projects
New investment in oil, gas, and coal projects was not necessary because ones currently planned or underway will supply enough energy to meet fossil fuel demand by 2050, a recent study found. The authors of the study, published in the journal Science, argued governments should stop issuing licenses for new fossil fuel projects. UN Secretary General António Guterres also called for more action around climate change, urging countries to ban advertising from fossil fuel companies, and said G7 and G20 leaders should outline “ambitious climate plans.”
Cooperation between Big Oil and climate activists is key
Big Oil companies and climate activists need to cooperate, Bloomberg’s editorial board wrote in the wake of a recent spat involving Exxon Mobil and activists who tried to push the company to take more serious action against climate change. Demonizing the fossil fuel industry is counterproductive, Bloomberg argued, especially because it is not going to disappear. Companies like Exxon should also take more meaningful action and set clear, concrete climate targets and timelines. “Winning the fight against climate change requires more good-faith bridge-building from both sides,” Bloomberg wrote.
