IEA: We expect total global energy investments to exceed $3 trillion in 2024

The International Energy Agency revealed on Thursday that it expects total global energy investments to exceed three trillion dollars in 2024 for the first time.

According to the Arab World News Agency (AWP), it added in the World Energy Investment Report that about one trillion dollars will be directed to clean energy technology, including renewable energy, electric cars, nuclear energy, distribution and storage networks, low-emission fuels, improving efficiency, and others.

The remaining amount, just over $1 trillion, will be allocated to investing in coal, gas and oil, the agency said.

She added that in 2023, total investment in renewable energy and grids exceeded the amount spent on fossil fuels for the first time.

The agency said that global investments in upstream activities in the oil and gas sector are expected to increase seven percent in 2024 to $570 billion, following a similar increase in 2023.

She added that spending growth in 2023 and 2024 is dominated by national oil companies in the Middle East and Asia.

The report revealed that oil and gas investments in 2024 are generally in line with the levels of demand included in light of current policies, but they are much higher than expected within scenarios of achieving national or global climate goals.

The International Energy Agency said that clean energy investments carried out by oil and gas companies amounted to $30 billion in 2023, representing only four percent of the industry’s total capital spending.

At the same time, the report stated that investments in coal continue to rise, with approval to produce more than 50 gigawatts of electricity from coal-fired units in 2023, which is the highest number since 2015.

In the same context, the International Energy Agency said that energy investments in the Middle East are expected to reach about $175 billion this year, while clean energy represents approximately 15 percent of the total investment.

She added that spending on fossil fuels is dominant in the region, which includes five of the world’s largest oil producers: Saudi Arabia, Iraq, the Emirates, Iran and Kuwait. She stated that, in addition, the region plays an important role as a natural gas producer, as it includes three of the ten largest producers in the world: Iran, Qatar, and the UAE.

The agency said that for every dollar invested in fossil fuels, 20 cents are allocated to investment in clean energy, representing about a tenth of the average global ratio of clean energy to fossil fuel investments.

But she noted that by 2030, investment in clean energy will more than triple its level compared to 2024. As a result, by the end of the current decade, 70 cents will be allocated to investment in clean energy for every dollar invested in fossil fuels.

The agency noted that five of the 12 countries in the region have set goals to reach net carbon emissions to zero. The UAE and the Sultanate of Oman aim to reach this goal by 2050, while Saudi Arabia, Bahrain and Kuwait announced their goal of reaching net zero emissions in 2060.