Investment In Solar Power to Beat Oil For First Time

According to the International Energy Agency (IEA), investments in solar projects are expected to outstrip investments in oil production for the first time ever in 2023.

The Paris-based energy watchdog revealed that annual investments in renewable energy have surged by approximately 25% since 2021, surpassing the 15% increase in fossil-fuel spending over the same period. 

However, fossil-fuel investments are still double the level they need to be if the world is to achieve net-zero emissions by 2050. That said, the pace of progress in clean energy is encouraging, with $1.7 invested in clean energy for every dollar allocated to fossil fuels.

Global energy investments in 2023 are projected to be in the region of $2.8 trillion, with more than $1.7 trillion expected to come from renewables, nuclear power, electric vehicles and energy efficiency enhancements. The remaining amount will be allocated to oil, gas and coal.

Solar-power investment is set to exceed $1 billion per day in 2023, totaling around $380 billion for the year. The remarkable growth of solar power, in particular, is considered to have a major role to play in the rapid decarbonization of the global economy.

The IEA has called for a halt in fossil fuel investments, which has been met with resistance from the Organization of the Petroleum Exporting Countries (OPEC), which argues that such action would endanger global energy security and economic growth. On the other hand, scientists and climate activists continue to stress that continued investment in fossil fuels only exacerbates the devastating impacts of climate change.