Global Energy Investment to Increase 8% in 2022 – IEA Report
Global energy investment is set to rise 8% to $2.4 trillion in 2022, with the increase mostly coming from clean energy, the International Energy Agency said in a report Wednesday.
The fastest growth is coming from the power sector, mainly in renewables and grids, and from energy efficiency, but the rise in clean energy spending is not evenly spread as most is taking place in advanced economies and China, the IEA said.
However, the growth in clean energy investment is far from sufficient to tackle the energy and climate crisis, the agency noted. In some areas, energy security concerns amid higher prices are even prompting increased investment in fossil fuel supplies, particularly coal, it said.
Global oil and gas sector income is set to jump to $4 trillion in 2022, more than twice its five-year average, amid high fossil fuel prices, the IEA said. Tight supply chains are also playing a large part in the rise in investment as nearly half of the overall spending increase is a reflection of higher costs, the IEA said.
Windfalls for oil and gas producers due to higher fossil fuel prices are an opportunity to fund the much-needed transformation of their economies and diversification of spending for companies, the agency said. The share of spending by oil and gas companies on clean energy is slowly rising, the IEA noted. #Global Energy Investment to Increase 8% in 2022 – IEA Report