Europe is expected to overtake the US in clean energy by 2024. However, no region can match China’s investment. According to new research from the International Energy Agency (IEA), financing for clean energy technology will reach $2 trillion by 2024, almost twice as much as investment in fossil fuels.
Renewable energy sources, electric vehicles and nuclear energy are the main areas that attract investment. However, it is seen that not every region distributes the investment equally.
China is a clear leader in this area, with the country planning to spend $675 billion this year, according to the IEA, thanks to strong domestic demand for solar energy, lithium batteries and electric vehicles.
Europe comes in second with $370 billion in clean energy investment, surpassing the United States with $315 billion.
Inequalities in Global Clean Energy Investments
China, Europe and the US account for more than two-thirds of global clean energy investment, but outside these financial powerhouses, capital flows much less freely.
Spending in emerging and developing economies outside China remains low, accounting for only 15% of global clean energy investment combined.
The IEA warns that high capital costs are holding back clean-tech projects. Fossil fuels continue to attract big investment. According to the IEA, global oil and gas investment is expected to rise by 7% to $570 billion in 2024. The agency saw a similar increase last year. This shows that the transition to clean energy still faces significant hurdles.
