Global investment in energy is slated to hit roughly $2.8 trillion in 2023, according to a new report from the International Energy Agency, with over $1.7 trillion of that set to go on clean energy technologies such as EVs, renewables and storage.
In a sign of how the energy transition is progressing, the IEA’s World Energy Investment report said solar investments were expected to attract over $1 billion a day in 2023.
In a statement, Fatih Birol, the IEA’s executive director, said investment in solar was “set to overtake the amount of investment going into oil production for the first time.”
Speaking to CNBC’s Arabile Gumede Thursday morning, Birol said there was a “growing gap between the investment in fossil energy and investment [in] clean energy.”
There were three reasons for this, he argued. Firstly, the cost of clean energy such as solar and wind was “getting cheaper and cheaper,” he said.
Secondly, Birol noted that many governments now saw “clean energy sources — renewables, electric cars, nuclear power — as a lasting solution to their energy security problem, in addition to climate change.”
Industrial strategy was the third factor, Birol said, namechecking the United States’ Inflation Reduction Act and other programs and policies in Europe, Japan, India and China.
More: Solar investment set to overtake oil production and attract over $1 billion a day in 2023, IEA says