This year, for the first time, investments in renewable energy will overtake investments in fossil fuel (coal, oil, natural gas), according to a report from the International Energy Agency (IEA).
For those wondering what the future of the energy sector might look like, this milestone is a huge direction-setter*.* And a cue for some celebration.
The biggest players in both industries, solar and oil, are at the front of this shift, and solar projects are expected to exceed oil production for the very first time.
Solar is claiming a place as a shining light and a “true energy superpower”, and getting the chance to fuel decarbonization of the economy.
Here are some must-know facts from the report:
- For every dollar invested in fossil fuels, about 1.7 dollars are now going to clean energy.
- The global energy crisis, plus the growing affordability of renewables has given rise to more sustainable alternatives.
- Today, more earth-friendly energy technologies and improvements in energy efficiency are more attainable than ever.
- Yearly investments in renewables are predicted to increase 24% from 2021 to 2023. Fossil fuel investments are expected to rise only 15%.
So, what does this mean for fossil fuels?
Does this mean that fossil fuels are going to disappear? Not exactly.
Though investments in renewables are set to outpace fossil fuels, investment in the latter is still on the rise. The IEA report states that fossil fuel investment will increase by 6% this year. That means they’re still getting a bigger piece of the pie than they should if governments around the world are going to stay on track for the Net Zero Emissions by 2050 Scenario laid out by the IEA.
But people around the world are making strides to change that, and a sunny, regenerative future is possible.