Invasion Of Ukraine Has Fuelled Investment For Clean Energy
Due to Russia’s invasion of Ukraine, clean energy investment have been on the rise, such will significantly outpace spending on fossil fuels, according to the International Energy Agency.
According to a report from the IEA, clean energy investment is on track to reach $1.7tn (£1.4tn) this year as investors turn to renewables, electric vehicles, nuclear power, grids, storage and other low-carbon technologies.
Fatih Birol, the executive director of the IEA, said: “Clean energy is moving fast – faster than many people realise. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels.
“In very simple, but very striking terms, five years ago global energy investment was $2tn, of which $1tn was for clean energy and $1tn was for fossil fuels. Today, $1tn is for fossil fuels and $1.7tn is for clean energy. This is a dramatic shift which will have consequences for the energy markets and climate change. In my view, it’s very exciting.”
Birol further said. “For the first time in history the amount of investment going to solar is higher than the amount going to oil production. It may be symbolic but it is very important because it shows the tide turning,”
Clean energy investment has continuously rise in recent years as governments and investors have sought to take advantage of the low cost of renewables such as wind and solar power.
While the investment in fossil fuels plunged during the Covid-19 pandemic when severe travel restrictions caused demand for transport fuels to plummet, leading to a collapse in energy commodity prices.
However, the IEA report warned that Russia’s war in Ukraine has also prompted increased investment in upstream oil and gas, which is expected to rise by 7% in 2023 in a return to 2019 levels