- 12% Clean Energy Investment recorded in 2022
- Half of the total increase in spending will come from higher costs
The International Energy Agency has revealed that clean energy investment is projected to exceed USD 1.4 trillion in 2022. It also stated that renewables, improved efficiency, grids and storage will account for the bulk of the spending and are expected to experience a boom in the year.
Following the 2015 Paris Agreement, clean energy investment has been at an average of 2% but has made a huge leap to 12% since 2020. Even though this current rate is still below what is necessary for achieving the international climate goals, it still marks a huge landmark in the right direction, the IEA said during its announcement of the World Energy Investment report 2022.
It is expected that clean energy investment in 2022 will account for almost three-quarters of the 2022 growth in all energy investment, which according to the forecast, is to expand by 8% to USD 2.4 trillion.
It is, however, expected that half of the total increase in spending will come from higher costs.
The IEA also noted that the increase in clean energy spending is majorly in the developed economies and China. It also revealed that energy security concerns and high prices are leading to increased investment in fossil supplies, with particular growth of coal, in some markets.