The ascent of clean energies: Investments now exceed fossil fuel investments by 2-fold.

Latest data indicates that for every dollar invested in fossil fuels, there is currently a minimum of $1.7 allocated to the development of clean and renewable energy. Just five years ago, the ratio was still evenly balanced at one-to-one. This information was provided by the International Energy Agency (IEA).

Renewable sources gaining the upper hand

Investments in clean energy are projected to reach $1.7 trillion by the end of this year. Consequently, investments in fossil fuel sources will approach the one trillion mark. Specific data can be derived from the latest research published by the International Agency.

To provide a clearer understanding, clean energy encompasses all renewable sources, including nuclear, low-emission fuels, heat pumps, and the like. Fossil fuels are limited to the most typical ones, namely coal, gas, and oil. A yearly increase of up to 24% in the share of clean energy compared to fossil sources is expected. On the other hand, the energy sector does not anticipate a significant decline; rather, an approximate 15% reduction annually is anticipated.

Photo from Zbynek Burival on Unsplash

The foundation is good, but there is still work to be done

For the first time in history, solar energy is set to surpass the oil industry. While approximately 382 billion will be invested in solar energy this year, the oil industry will receive a sum that is eleven billion smaller. In addition to robust economic growth in this sector, the faster adoption of renewable energy can also be attributed to the Russian invasion of Ukraine.

However, analysts argue that the reduction in production and financial support for the oil sector needs to slow down much earlier and in a more significant manner. Only a mere 5% increase has been allocated to low-emission alternatives to conventional fuels compared to the previous year. Economically stable and strong nations, in particular, must provide greater support for resource shifts in this direction. The numbers clearly indicate the correct path for the development of the energy sector. The only thing left to do is to press the accelerator a bit more.