
Image: IEA
Despite pressures on financing, global investment in clean energy is set to reach almost double the amount going to fossil fuels in 2024, helped by improving supply chains and lower costs for clean technologies, according to a new IEA report.
A significant portion of that investment will directly impact and expand the logistics industry, particularly breakbulk, project logistics, and maritime. This shift not only transforms transportation to be cleaner but also meets the soaring demand for logistics services.
Total energy investment worldwide is expected to exceed $3 trillion in 2024 for the first time, with around $2 trillion dedicated to clean technologies—encompassing renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements, and heat pumps—according to the IEA’s annual World Energy Investment report. The remaining investment, just over $1 trillion, is earmarked for coal, gas, and oil. Notably, in 2023, investment in renewable power and grids surpassed fossil fuel spending for the first time.

However, the report also highlights major imbalances and shortfalls in energy investment across many regions. It points to the low level of clean energy spending in emerging and developing economies (excluding China), which is expected to surpass $300 billion for the first time, led by India and Brazil. This figure represents only about 15% of global clean energy investment, insufficient to meet the growing energy demands in these countries, where high capital costs hinder new project development.
“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy. For every dollar going to fossil fuels today, almost two dollars are invested in clean energy,” said IEA Executive Director Fatih Birol. “The rise in clean energy spending is underpinned by strong economics, by continued cost reductions and by considerations of energy security. But there is a strong element of industrial policy, too, as major economies compete for advantage in new clean energy supply chains. More must be done to ensure that investment reaches the places where it is needed most, in particular the developing economies where access to affordable, sustainable and secure energy is severely lacking today.”
The IEA report further notes that when the Paris Agreement was reached in 2015, investment in renewables and nuclear for electricity generation was twice that of fossil fuel-fired power. By 2024, this is projected to be ten times higher, driven by solar PV. Investment in solar PV is set to grow to $500 billion as falling module prices encourage new investments.
China is expected to account for the largest share of clean energy investment in 2024, with an estimated $675 billion. This is driven by strong domestic demand across solar, lithium batteries, and electric vehicles. Europe and the United States follow with clean energy investments of $370 billion and $315 billion, respectively. Together, these three major economies constitute more than two-thirds of global clean energy investment, highlighting disparities in international capital flows.
Global upstream oil and gas investment is projected to increase by 7% in 2024, reaching $570 billion, following a similar rise in 2023. This growth is predominantly led by national oil companies in the Middle East and Asia. According to the report, oil and gas investment in 2024 aligns with current policy settings for 2030 but far exceeds projections in scenarios aimed at achieving climate goals. Meanwhile, clean energy investment by oil and gas companies reached $30 billion in 2023, just 4% of their total capital spending. Coal investment continues to rise, with over 50 gigawatts of unabated coal-fired power approved in 2023, the highest since 2015.
Additionally, grids and electricity storage have been significant constraints on clean energy transitions. However, spending on grids is rising, set to reach $400 billion in 2024, driven by new policy initiatives and funding in Europe, the United States, China, and parts of Latin America. Investments in battery storage are also increasing, projected to hit $54 billion in 2024 as costs decline. Nonetheless, this investment is highly concentrated; for every dollar invested in battery storage in advanced economies and China, only one cent is invested in other emerging and developing economies.
Source: IEA