Global energy investment is on the rise and expected to grow by 8 percent annually this year, pushed up by record spending on clean energy, the International Energy Agency (IEA) said in its new report World Energy Investment 2022.
On the face of it, that’s great news for global energy supply and climate goals. But in reality, the rising trend is a function of galloping inflation, a deepening divide between developed and emerging economies’ investment trends, and an increase in coal investments as the biggest economies in Asia prioritize energy security amid soaring energy prices and upended energy markets following the Russian invasion of Ukraine.
“As things stand, today’s energy investment trends show a world falling short on climate goals, and on reliable and affordable energy,” the IEA itself admitted as much in its report.
Global energy investment is forecast to rise by 8 percent to $2.4 trillion this year, with renewables and grid investments increasing at the fastest pace.