The International Energy Agency (IEA) called on developing and industrializing countries to invest more money in clean energy, in a study released on Thursday.
While two thirds of the expected global investment in the energy sector of around €2.8 trillion ($3 trillion) in 2024 will be channelled into clean energy, including nuclear power, there are still imbalances and deficits in investment flows.
In developing and newly industrializing countries other than China, spending on clean energy remains low. Expenditure in this group, led by India and Brazil, comes to €275 billion, only 15% of global investments in clean energy, the agency said. It is far below what is needed to meet the growing energy demand in many of these countries.
"Investment in clean energy is setting new records even in difficult economic conditions, underlining the dynamism of the new global energy economy," said IEA Director Fatih Birol.
But there is also a strong industrial policy element as major economies compete for advantage in the new clean energy supply chains, he said. "More needs to be done to ensure that investment gets to where it is most needed, particularly in developing countries where access to affordable, sustainable and secure energy is now very poor," he said.
China will account for the largest share of clean energy investment in 2024 with an estimated €620 billion, IEA data show.
Europe and the United States are set to follow with green energy investments of €340 billion and €290 billion respectively.
These three major economic areas alone account for more than two thirds of global clean energy investment, showing the differences in international capital flows in the energy sector.