According to the International Energy Agency (IEA), global investment in clean energy sources will surpass $3 trillion in 2024, more than double the investment in fossil fuels. Over two-thirds of this green investment will come from China, the United States, and Europe, while emerging markets account for only 15% of the total.
Despite this positive trend, the IEA warned that more needs to be done to meet the goal of limiting global warming to 1.5°C. The focus should be on developing economies, which currently lack “affordable, sustainable and secure energy,” according to IEA chief Faith Birol. High financing costs, double that of advanced economies and China, are a major barrier, but support from development finance institutions could help lower them and attract more private investment. Limited grid capacity and energy storage are also hurdles, contributing to a downward trend in renewable energy targets.
A recent study published in the journal Science argued that new investment in oil, gas, and coal projects is not necessary, as the projects currently planned or underway will supply enough energy to meet fossil fuel demand by 2050. The authors urged governments to stop issuing licenses for new fossil fuel projects. UN Secretary-General António Guterres also called for more action on climate change, including banning advertising from fossil fuel companies and outlining ambitious climate plans from G7 and G20 leaders.
Bloomberg’s editorial board argued that cooperation between Big Oil companies and climate activists is key to winning the fight against climate change. Demonizing the fossil fuel industry is counterproductive, and companies like Exxon should take more meaningful action by setting clear, concrete climate targets and timelines. “Winning the fight against climate change requires more good-faith bridge-building from both sides,” Bloomberg wrote.
