Shifting Tides: IEA Forecasts Solar Power Investment to Outshine Oil in Landmark Shift

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solar power investment

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The world is moving towards a clean energy future, and solar power is leading the way. In 2023, investment in solar power is expected to outstrip investment in oil for the first time.

The upside

  • Investing in clean energy could create 28 million jobs by 2030.
  • The clean energy sector is growing at twice the overall economy’s rate.
  • Investing in clean energy could save the world $26 trillion by 2050.

This is according to the International Energy Agency (IEA), which released its World Energy Investment report in May. The IEA said that annual investment in renewable energy was up by nearly a quarter since 2021, compared with a 15% rise for fossil fuels.

In 2023, investment in solar power is expected to reach $380 billion.

Several factors are driving this shift to clean energy. One factor is government policy. Many governments are now implementing policies to support renewable energy development, such as tax breaks and subsidies.

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The falling cost of renewable technologies

falling cost of solar panels

The cost of solar panels and wind turbines has fallen dramatically in recent years, making them more affordable than ever before. Finally, public demand for clean energy is also increasing. People are becoming more aware of the environmental impact of fossil fuels and are looking for ways to reduce their carbon footprint.

The cost of solar panels has fallen by 80% since 2009.

The shift to clean energy is a positive development for the world. It will help reduce our reliance on fossil fuels, a major source of pollution and climate change.

It will also create jobs and boost the economy. The IEA says that the world must invest $5 trillion annually in clean energy by 2030 to achieve net-zero emissions by mid-century.

This is a significant amount of money, but it is an investment worth making. The future of our planet depends on it.

Government policies can promote more investment in clean energy

It’s about time. Our money and capital are finally catching up with where our mouths have been for decades. I hope we also start fulfilling the other ambitious targets to cut carbon emissions and limit global warming to 1.5 degrees Celsius above pre-industrial levels.

Growing investment in clean energy can help address some of our current global problems, from unemployment in many developing nations to climate change and air pollution. It also strengthens nations’ energy security. They’d no longer be beholden to the oil nations and their interests.

So, how do we accelerate the growth further?

Governments can start by setting ambitious clean energy targets. This signals that there is a market for clean energy technologies.

They can also provide financial incentives for clean energy projects, such as tax breaks, subsidies, and grants. They help reduce the initial cost of clean energy and make it more competitive with fossil fuels.

Governments can also create a supportive regulatory environment for clean energy. This can include streamlining permitting processes, providing access to transmission lines, and ensuring a fair market for renewable energy.

For example, China has set ambitious clean energy targets and provided financial incentives for projects. As a result, China has become a global leader in clean energy, and its investment in clean energy has helped to reduce its reliance on fossil fuels and improve its air quality.

The United States has also enacted policies to promote clean energy, such as the Clean Power Plan and the Investment Tax Credit for solar and wind power. These policies have helped to increase investment in clean energy in the United States, and they have also helped to create jobs in the clean energy sector.

Investment in clean energy is a good thing for the planet and the economy.

  • Simon Elstad

    As assistant editor at Greener Ideal, Simon champions clean energy, mobility, tech and the environment. He’s passionate about uncovering innovative solutions that power a sustainable future. When he's not dissecting envirotech data, you can find him exploring nature, actively supporting wildlife & environmental conservation efforts.

    Contact: [email protected]

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