More than $500bn (£391.13bn) was invested into oil and gas last year, according to a report from the International Energy Agency (IEA), in a blow to environmental activists’ calls for no new fossil fuel development.
Investment in oil and gas production rose 9pc last year to $530bn and is expected to surge by another 7pc this year to around $570bn.
The increase was driven by producers in the Middle East and Asia, the IEA said.
Similarly, investments in coal production rose by 6pc last year, mostly driven by demand in China, India and southeast Asia, according to the World Energy Investment 2024 report.
The figures come just a day after UN Secretary General António Guterres called coal, oil and gas corporations the “godfathers of climate chaos” and called for a ban on advertising for fossil fuels.
UN Secretary General António Guterres called oil and gas companies ‘godfathers of climate chaos’ on Wednesday CREDIT: Anadolu
The IEA report warned that fossil fuel industries were releasing a near-record 120 million tonnes of methane into the air each year as a by-product – even though cutting these emissions would be among the easiest and cheapest of climate measures.
Last year was the hottest on record and the World Meteorological Organisation (WMO) said on Wednesday that the record could fall again as soon as this year.
The fossil fuel industry is the primary source for planet-warming greenhouse gases, with humanity releasing the equivalent of 55 billion tonnes of CO2 into the atmosphere annually.
The IEA report pointed to positive trends in renewable investment, with a record $2 trillion set to go to clean technologies this year, including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps.
Global investment in energy is expected to exceed $3 trillion for the first time this year, meaning around twice as much is being invested into clean energy projects compared to fossil fuels.
Combined investment in renewable power and grids overtook the amount spent on fossil fuels for the first time in 2023.
IEA executive director Fatih Birol said: “For every dollar going to fossil fuels today, almost two dollars are invested in clean energy.
“The rise in clean energy spending is underpinned by strong economics, continued cost reductions and by considerations of energy security.”
China is set to account for the largest share of clean energy investment in 2024 with an estimated spend of $675bn, while Europe is expected to outlay $370bn and the United States $315bn.
More spending is focused on solar photovoltaic (PV) than any other electricity generation technology with investment set to grow to $500bn in 2024 as solar module prices fall.
However, there are still shortfalls in energy investment in parts of the world such as emerging economies and developing economies outside China, the IEA added.
