Global shift towards sustainable energy drives $3.1 trillion investment surge

A new report from the International Solar Alliance (ISA) highlights a global increase in sustainable energy investments, rising from $2.4 trillion in 2018 to an expected $3.1 trillion by 2024, with solar energy dominating green investments. 

Solar alone now accounts for 59 per cent of these investments, primarily due to decreasing technology costs and a surge in support from the Asia-Pacific (APAC) region, which has emerged as the leading investor.

According to the World Solar Investment Report, clean energy investments are projected to push total energy sector investment above $3 trillion. 

From 2018 to 2024, the energy sector saw a compound annual growth rate (CAGR) of approximately 4.6 per cent, with investments in power generation making up 68 per cent ($893 billion) of the power sector’s investments in 2023. 

Fossil fuel investment has dropped from 49 per cent ($1,171 billion) in 2018 to a forecasted 36 per cent ($1,116 billion) by 2024, while clean energy investment has surged from 51 per cent ($1,212 billion) to 64 per cent ($2,004 billion), at a CAGR of approximately 8.7 per cent.

Renewable energy investments hit a record $673 billion in 2023, with solar accounting for about 58.35 per cent. Falling mineral and metal prices, especially those essential for battery production, have also spurred investment in solar photovoltaic (PV) technology, expected to exceed $500 billion by 2024. 

APAC, which invested $223 billion in solar in 2023, is at the forefront of this growth, driven by rising energy demand, supportive policies, and advances in solar technology.