【Ferro-alloys.com】: Two-thirds of the funds will be spent on clean energy – twice as much as on fossil fuels

In 2025, global energy investments will reach a record $3.3 trillion, of which more than $2.2 trillion will be in clean energy. This is stated in a new report by the International Energy Agency (IEA), Argus.Media reports.

According to the organization, investments in clean technologies are already twice as high as fossil fuel financing.

Despite geopolitical instability and economic uncertainty, total investment will grow by 2% in real terms. Renewables, nuclear power, power grids, energy storage, low-carbon fuels, and energy efficiency will be the main areas of net investment in 2025.

“Clean energy today is not only a climate priority, but also a matter of economic feasibility and energy security. Despite the caution of some investors, most projects have not been stopped,” said IEA Executive Director Fatih Birol.

The main driver of transformation has been the growing demand for electricity. In 2025, investments in the electricity sector will reach $1.5 trillion, of which $450 billion will be in solar energy. At the same time, investments in the power grid, although they will grow to a record $400 billion, are not keeping pace with the pace of demand.

Amid falling prices and uncertainty, investments in oil and gas will decline by 4% to $570 billion. Oil production costs will decrease by 6%. Investments in the coal industry will continue to grow, but more slowly – by 4%, mainly in China and India.

The IEA also notes a growing regional imbalance. China remains the leader in terms of clean energy investments, while the US is expected to stabilize due to a reduction in government support.

Global energy-related carbon emissions increased by 0.8% year-on-year in 2024, reaching a historic high of 37.8 Gt. Last year, CO2 emissions from fuel combustion increased by about 1%, or 357 million tons, while industrial processes decreased by 2.3%, or 62 million tons.

• [Editor:Alakay]