Global Energy Investment to Reach $2 Trillion by 2024, Despite Financing Challenges
Despite higher financing costs hindering new projects, especially in emerging and developing economies, global energy investment is expected to reach $2 trillion by 2024, according to the International Energy Agency's (IEA) latest report, World Energy Investment 2024.
Despite financial pressures, global investments in clean energy are expected to almost double in 2024 compared to fossil fuels, thanks to improved supply chains and decreasing clean technology costs. In fact, "the total amount of energy investments is expected to exceed $3 trillion for the first time in 2024," the report notes.
Around $2 trillion will be invested in clean technologies, including renewable energy, electric vehicles, nuclear energy, grids, storage, low-emission fuels, energy efficiency improvements, and heat pumps. The remaining $1 trillion will be invested in coal, gas, and oil.
Regarding Africa, the report highlights an increase in clean energy investments. Although these investments are still insufficient compared to the continent's needs, there are encouraging signs of acceleration. In 2024, clean energy investments are expected to approach $40 billion, almost twice as high as in 2020.
The IEA emphasizes the importance of strengthened international cooperation to support investments in sustainable energy infrastructure in Africa, ensuring access to energy for all.
However, despite this encouraging trend, the IEA stresses that these investments still fall short of the continent's real needs. To bridge this gap, international cooperation to support investments in sustainable energy infrastructure in Africa is imperative, particularly given the region's enormous potential for renewable energy, including solar, wind, and hydroelectric power.