IEA report forecasts US$2 trillion clean energy market growth, challenging oil industry dominance

The International Energy Agency’s (IEA) Energy Technology Perspectives 2024 report predicts rapid expansion in the clean energy market, with investments in solar PV, wind, electric vehicles, batteries, electrolysers, and heat pumps expected to triple by 2035, reaching over US$2 trillion. 

This anticipated growth could rival the economic scale of the global oil market, marking a pivotal shift towards a sustainable economy.

IEA Executive Director Fatih Birol highlighted the interlinking of energy, industry, and trade policies as countries compete for leadership in the clean energy sector. 

The UK’s Labour-led Autumn Budget aligns with these projections, aiming to create 650,000 jobs in clean energy. Major investment drivers include China, the EU, the US, and India, with China expected to remain the global renewables leader, potentially exporting over US$340 billion in clean technology by 2035.

Emerging economies are also poised to benefit from this transition. The IEA report identifies opportunities for Southeast Asia in solar component manufacturing, Brazil in wind turbine exports, and Africa in low-emission iron production and EV manufacturing. 

This global shift in energy technology production and trade will reshape traditional trade routes, with clean technologies projected to dominate maritime trade routes through the Strait of Malacca.