Solar Investments Expected to Attract Over $1 Billion Daily in 2023, Surpassing Investment in Oil Production

(CTN News) – According to a new estimate from the International Energy Agency, global energy investment is expected to reach around $2.8 trillion in 2023, with more than $1.7 trillion going toward clean energy technologies like EVs, renewables, and storage.

Solar Investments Expected to Attract Over $1 Billion Daily in 2023, Surpassing Oil Production Investment for the First Time

The IEA predicted that by 2023, solar investments would draw over $1 billion per day, which is indicative of the momentum of the energy transformation.

The executive director of the International Energy Agency (IEA), Fatih Birol, recently predicted that solar investment will “overtake the amount of investment going into oil production for the first time.”

While the foregoing is excellent news for proponents of a sustainable future, the IEA’s prediction that coal, gas, and oil will continue to attract “slightly over” $1 trillion of investment this year will likely disappoint them.

Fossil Fuels Still Receive Over $1 Trillion Investment, Exceeding Requirements for Net Zero Emissions by 2050

“Today’s fossil fuel investment spending is now more than double the levels needed in the Net Zero Emissions by 2050 Scenario,” the IEA report stated.

 

“The misalignment for coal is particularly striking: today’s investments are nearly six times the 2030 requirements of the NZE Scenario,” it continued.

The use of fossil fuels has serious consequences for the planet. As the United Nations puts it, “human activities have been the main driver of climate change, primarily due to burning fossil fuels like coal, oil, and gas.”

The IEA study is overshadowed by the Paris Agreement of 2015. The historic deal’s stated objective is to “limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.”

To keep global warming below 1.5 degrees Celsius, it is imperative that we eliminate all net emissions of carbon dioxide by the year 2050.

Recent years have seen prominent personalities like United Nations Secretary-General Antonio Guterres express their opinions on fossil fuels.

Guterres criticized more money for fossil fuel development in June of last year. He labeled it “delusional” and urged a withdrawal of financial support for fossil fuels.

However, despite these worries, the oil and gas industry pushes forward with development projects worldwide.

When asked about BP’s strategy in October 2022, BP CEO Bernard Looney said the company was pouring money into hydrocarbon investments and the energy transition.

Even though there would be worries about the money going to fossil fuels, Birol of the IEA wanted to bring attention to a major shift in the future.

Solar Emerges as an Energy Superpower, Crucial for Rapid Decarbonization

In a statement released alongside the IEA report, he added, “Clean energy is moving fast — faster than many people realise.” The investment trends show that “clean technologies are gaining ground and pushing fossil fuels to the side.”

According to Birol, “for every dollar invested in fossil fuels, about 1.7 dollars are now going into clean energy,” whereas just five years ago, the ratio was 1:1.

Dave Jones, head of data insights at energy think tank Ember, was among many who weighed in on the IEA report. He proclaimed, “This confirms solar as a genuine energy superpower.”

In addition, “it is emerging as the biggest tool we have for rapid decarbonisation of the entire economy,” he said, citing the growing usage of solar energy to power automobiles in place of oil.

“It is still ironic that some of the sunniest places in the world have the lowest levels of solar investment,” the author writes.