A recent report released by the International Energy Agency (IEA) higlights how plunging costs and enhanced supply chains are fueling a surge in global investments across a spectrum of clean technologies, including renewables, electric vehicles (EVs), nuclear power, grids, storage, and heat pumps. In stark contrast, slightly over $1 trillion will be allocated to coal, gas, and oil. Significantly, global spending on renewables and grids combined surpassed fossil fuel investments for the first time last year.
The burning of coal, natural gas, and oil for electricity and heat remains the single-largest source of global greenhouse gas (GHG) emissions, the primary drivers of global warming by trapping heat in the atmosphere and raising Earth’s surface temperature. Global fossil fuel consumption has more than doubled in the last 50 years, as nations around the world strive to improve living standards and economic output. In 2023, all three of the most potent GHGs – carbon dioxide (CO2), methane, and nitrous oxide – reached record highs.
As the major source of global emissions, the energy sector holds the key to addressing the world’s climate challenge. The IEA has urged countries to halt new gas and oil field projects, arguing that this is the only way to keep the 1.5C-compatible net-zero emissions scenario alive.
Last year, the agency forecasted that the global power sector is set for a tipping point on its carbon dioxide emissions in 2025, as renewables and other cleaner sources, including nuclear energy, are on track to cover all of the world’s additional electricity demand over the next three years.