More than $1.7 trillion will be invested in clean energy in 2023 – IEA


May 26, 2023.

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Azonuchechi Chukwu.

The International Energy Agency (IEA) has said that over $1.7 trillion will be invested in clean energy in 2023.

The agency stated this in its World Energy Investment report released recently. According to the report, the recovery from the slump caused by the Covid-19 pandemic and the response to the global energy crisis has provided a significant boost to clean energy investment.

A part of the report stated:

“We estimate that around $2.8 trillion will be invested in energy in 2023. More than $1.7 trillion is going to clean energy, including renewable power, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables and electrification.

“The remainder, slightly over USD 1 trillion, is going to unabated fossil fuel supply and power, of which around 15% is to coal and the rest to oil and gas. For every $1 spent on fossil fuels, $1.7 is now spent on clean energy. Five years ago, this ratio was 1:1.”

The IEA believes that annual clean energy investment has risen much faster than investment in fossil fuels between 2021 and 2023 (24% vs 15%).

The Russia-Ukraine context

The report highlights the fact that the Russia-Ukraine war has contributed significantly to the intense volatility that has plagued the fossil fuel market in the last year. On the positive side though, the volatility has accelerated momentum behind the deployment of a range of clean energy technologies, even as it also prompted a short-term scramble for oil and gas supply.

Factors responsible for increased clean energy investments

According to the IEA report, clean energy investments have been boosted by a variety of factors. These include:

Improved economics at a time of high and volatile fossil fuel prices

Enhanced policy support through instruments like the US Inflation Reduction Act and new initiatives in Europe, Japan, China, and elsewhere

A strong alignment of climate and energy security goals, especially in import-dependent economies

A focus on industrial strategy as countries seek to strengthen their footholds in the emerging clean energy economy.

The report explains further that the clean energy momentum has been led by renewable power and electric vehicles. Recall that the IEA said that in its 2023 Global Electric Vehicle Outlook report, the IEA said that electric vehicles (EVs) will displace oil in the coming years.

However, this will depend on electromobility pledges made by countries around the world. In the Nigerian context, the government recently adopted the National Automotive Industry Development Plan (NADIP) from 2023 to 2033.

The policy is aimed at enabling the exponential increase in the local production numbers of vehicles, reaching 40% local content, and attaining 30% locally produced electric vehicles.

Solar is the star of clean energy

The IEA report identifies solar energy as being the star of clean energy growth around the world. The report stated:

“Solar is the star performer and more than $1 billion per day is expected to go into solar investments in 2023 ($380 billion for the year as a whole), edging this spending above that in upstream oil for the first time. Consumers are investing in more electrified end uses.”

Meanwhile, the report states that the demand for electric cars is booming, with sales expected to leap by more than one-third in 2023, after a record-breaking 2022. As a result, investment in electric vehicles has more than doubled since 2021, reaching $130 billion in 2023.

Note that other important clean energy contributions are batteries, heat pumps, and nuclear power. In 2023 low-emissions power is expected to account for almost 90% of total investment in electricity generation. (

Azonuchechi Chukwu
Azonuchechi Chukwu
Azonuchechi Chukwu - Business Journalist at Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the team.

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