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Solar investment is expected to attract over $1 billion per day by 2023, surpassing oil production

A new report from the International Energy Agency projects that global investment in energy will reach approximately $2.8 trillion in 2023. Of that amount, more than $1.7 trillion will be spent on clean energy technologies like electric vehicles, renewable energy, and storage.

In an indication of how the energy change is advancing, the IEA’s World Energy Investment report said solar investments were expected to attract more than $1 billion a day in 2023.

The executive director of the International Energy Agency, Fatih Birol, stated in a statement that solar investment was “set to overtake the amount of investment going into oil production for the first time.”

Birol stated that there was a “growing gap between the investment in fossil energy and investment [in] clean energy” in an interview with Arabile Gumede of CNBC on Thursday morning.

He argued that there were three reasons for this. Firstly, the cost of clean energy, for example, solar and wind was “getting cheaper and cheaper,” he said.

Besides, Birol noticed that numerous governments currently saw “clean energy sources — renewables, electric cars, nuclear power — as a lasting solution to their energy security problem, in addition to climate change.”

Birol mentioned the Inflation Reduction Act of the United States as well as other programs and policies in Europe, Japan, India, and China as the third factor.

“Governments, investors, see that the next chapter of the industry is clean energy technology manufacturing — batteries, electric cars, solar panels — and they are providing huge incentives to investors,” he explained.

The IEA’s prediction that coal, gas, and oil will continue to attract “slightly over” $1 trillion in investment this year will likely dissuade advocates of the transition to a sustainable future.

“Today’s fossil fuel investment spending is now more than double the levels needed in the Net Zero Emissions by 2050 Scenario,” the IEA’s report said.

“The misalignment for coal is particularly striking: today’s investments are nearly six times the 2030 requirements of the NZE Scenario,” it added.

Fossil fuels have a big impact on the environment. The U.N. says that, since the 19th century, “human activities have been the main driver of climate change, primarily due to burning fossil fuels like coal, oil and gas.”

The IEA’s report is heavily influenced by the 2015 Paris Agreement. “limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels,” is the goal of the historic agreement.

By 2050, it is expected that human-made carbon dioxide emissions will be net-zero, which is essential for meeting the 1.5 degrees Celsius target.

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