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Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
Global energy investment to hit record $3.3 trillion in 2025: IEA
Global energy investment is set to increase in 2025 to a record $3.3 trillion despite headwinds from elevated geopolitical tensions and economic uncertainty, as per a new IEA report, with clean energy technologies attracting twice as much capital as fossil fuels. Investment in clean technologies – renewables, nuclear, grids, storage, low-emissions fuels, efficiency and electrification – is on course to hit a record $2.2 trillion this year, reflecting not only efforts to reduce emissions but also the growing influence of industrial policy, energy security concerns and the cost competitiveness of electricity-based solutions, according to the 2025 edition of the IEA's annual World Energy Investment report. Investment in oil, natural gas and coal is set to reach $1.1 trillion. In addition to a comprehensive assessment of the current investment landscape across fuels, technologies and regions, this 10th edition of the World Energy Investment report explores some of the major changes over the past decade. Global energy investment is projected to reach a record $3.3 trillion in 2025, with $2.2 trillion going to clean energy technologiesâ€'double that of fossil fuels, according to the IEA. While solar and battery storage lead growth, grid investment lags behind. China dominates global energy spending, but developing economies, particularly in Africa, remain underfunded. 'Amid the geopolitical and economic uncertainties that are clouding the outlook for the energy world, we see energy security coming through as a key driver of the growth in global investment this year to a record $3.3 trillion as countries and companies seek to insulate themselves from a wide range of risks,' said IEA executive director Fatih Birol . 'The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas we have yet to see significant implications for existing projects.' 'When the IEA published the first ever edition of its World Energy Investment report nearly ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United States,' Birol added. 'Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union – and almost as much as the EU and United States combined.' Over the past decade, China's share of global clean energy spending has risen from a quarter to almost a third, underpinned by strategic investments in a wide range of technologies, including solar, wind, hydropower, nuclear, batteries and EVs. At the same time, global spending on upstream oil and gas is gravitating towards the Middle East. Today's investment trends clearly show a new age of electricity is drawing nearer. A decade ago, investments in fossil fuels were 30 per cent higher than those in electricity generation, grids and storage. This year, electricity investments are set to be some 50 per cent higher than the total amount being spent bringing oil, natural gas and coal to market. Globally, spending on low-emissions power generation has almost doubled over the past five years, led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in 2025, making it the single largest item in the global energy investment inventory. Battery storage investments are also climbing rapidly, surging above $65 billion this year. The report points out that capital flows to nuclear power have grown by 50 per cent over the past five years and are on course to reach around $75 billion in 2025. Rapid growth in electricity demand also underpins continued investment in coal supply, mainly in China and India. In 2024, China started construction on nearly 100 gigawatts of new coal-fired power plants, pushing global approvals of coal-fired plants to their highest level since 2015. In a worrying sign for electricity security, investment in grids, now at $400 billion per year, is failing to keep pace with spending on generation and electrification. Maintaining electricity security would require investment in grids to rise towards parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables. Lower oil prices and demand expectations are set to result in the first year-on-year fall in upstream oil investment since the COVID slump in 2020, according to the report. The expected 6 per cent drop is driven mainly by a sharp decline in spending on US tight oil. By contrast, investment in new liquefied natural gas (LNG) facilities is on a strong upward trajectory as new projects in the United States, Qatar, Canada and elsewhere prepare to come online. Between 2026 and 2028, the global LNG market is set to experience its largest ever capacity growth. Spending patterns remain very uneven globally – with many developing economies, especially in Africa, struggling to mobilise capital for energy infrastructure, the report finds. Today, Africa accounts for just 2 per cent of global clean energy investment. Despite being home to 20 per cent of the world's population and rapidly growing energy demand, total investment across the continent has fallen by a third over the past decade due to declining fossil fuel spending and insufficient growth in clean energy. To close the financing gap in African countries and other emerging and developing economies, international public finance needs to be scaled up and used strategically to bring in larger volumes of private capital, according to the report. Fibre2Fashion News Desk (RR)
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First Post
5 days ago
- Business
- First Post
The grand fall: Oil prices to continue slide, IAEA says fossil fuel spending to hit new post-Covid low
The IEA projected a 6 per cent reduction in oil production investment this year. Excluding pandemic years, this marks the largest drop since 2016 when oil prices plummeted below $30 a barrel read more A 6 per cent reduction in oil production investment is forecasted for this year. Representational Image Investment in fossil fuels is set to decline this year for the first time since the Covid-19 pandemic, driven by a significant contraction in oil sector spending, according to a new report by the International Energy Agency. The IEA projected a 6 per cent reduction in oil production investment this year. Excluding pandemic years, this marks the largest drop since 2016 when oil prices plummeted below $30 a barrel. 'This is the first time we have seen such a decline, except for Covid, because of lower prices and lower oil demand,' Financial Times cited Fatih Birol, head of the Paris-based intergovernmental energy advisory body, as saying. STORY CONTINUES BELOW THIS AD Since reaching $82 a barrel in mid-January, oil prices have fallen sharply to around $65 following Opec's significant production increase . The IEA indicated that US shale producers, responsible for 15 per cent of global oil investment, are particularly sensitive to lower prices and will reduce their spending by 10 per cent this year. Major international oil companies are also expected to scale back spending slightly, prioritising shareholder returns over new projects. Consequently, state-owned oil firms from West Asia and Asia will account for 40 per cent of all oil and gas investment globally this year, up from 25 per cent a decade ago. Clean energy investments decline among oil majors Oil giants have further reduced their investments in clean energy, according to the IEA, which reported a 25 per cent decline in spending on low-emissions technology last year, totaling $22 billion compared to the previous year. Overall, the world is anticipated to invest approximately $1.1 trillion in fossil fuels in 2025, substantially lower than the more than $2.2 trillion allocated to renewable energy, nuclear power, batteries, power grids, low-emission fuels, and energy efficiency. Coal power expands in China, India Despite the broader reduction in fossil fuel investment, China and India continue expanding coal-fired power generation to meet rapidly growing electricity demands. In contrast, advanced economies have notably stopped ordering new coal plant turbines for the first time ever. 'The addition of coal is mainly driven by energy security reasons,' Birol explained. 'China had some bitter experiences when there was very hot weather and hydropower was very weak.' Meanwhile, in the United States, despite the Trump administration's criticism of renewable energy, rising electricity demands from AI and data centers will necessitate additional renewable energy, gas, and nuclear power, according to Birol. Separately, Enverus, an energy research firm, noted that 517 gigawatts of planned renewable projects in the US still require federal tax credits, while 284 gigawatts do not. STORY CONTINUES BELOW THIS AD 'If these projects are built at the same pace as last year, that is enough to sustain today's build-out pace for more than six years,' said Corianna Mah, an analyst at Enverus.
Time of India
03-06-2025
- Automotive
- Time of India
Electric cars key to India's energy independence, says IEA chief
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India should prioritize electric vehicle (EV) adoption to reduce its dependence on oil imports and strengthen energy security, International Energy Agency (IEA) Executive Director Fatih Birol said on Monday after a meeting with Commerce and Industry Minister Piyush Goyal."India should look at the electrification of mobility very closely because currently we have low oil prices, but the country is definitely at the mercy of some key oil producers," Birol warned. "If India wants to have the upper hand in terms of domestic energy trajectories, electric cars are one of the key solutions."The IEA chief highlighted the rapid global shift toward electric vehicles, noting that electric car sales have surged from just 3 per cent of total car sales four years ago to 25% this year. "One out of four cars sold today is electric," he said. "This is mainly because electric cars are getting cheaper, slowly but surely."In many countries, electric and conventional vehicles now carry similar price tags, while operating costs favour EVs. "In most countries around the world, driving one kilometre costs less with electricity than with oil, unless oil prices fall below $50," Birol predicted that electric vehicles will eventually dominate global transportation. "The world is going to see that sooner or later, electric cars will be dominating the streets."Birol praised India as "one of the drivers of the global clean energy transition," particularly highlighting the country's solar energy achievements. "India has achieved a huge success story, especially on the solar front, and this is good for India's economy and its energy security," he IEA executive director also commended India's LED bulb program, calling Minister Goyal its architect and describing it as "one of the most successful programs in the history of energy transition." The initiative has made India's electrification system more cost-effective and environmentally also praised the Ujjwala program for bringing clean cooking solutions to hundreds of millions of households and for its efforts to provide electricity access to Indian concerns about the energy transition's supply chain, Birol warned of growing concentration in critical mineral mining and processing. "We are seeing major concentration. This is a worry because we at the IEA believe that the best energy security policy is diversification," he concentration of critical minerals--essential for energy transition, defense, and chip manufacturing--poses "serious risk for the years to come," he warned. Birol urged all countries to diversify mining, refining, and processing of key critical minerals to avoid potential supply oil-importing nations like India, Birol recommended government incentives to accelerate electric vehicle adoption. "Countries importing oil should consider giving incentives to electric cars to reduce imports from different parts of the world," he emphasized the importance of supporting consumers in purchasing their first electric vehicles, noting that countries must avoid falling behind in the electric car concerns about potential trade conflicts affecting the energy transition, Birol maintained that diversification remains the best strategy for ensuring energy security in an increasingly electrified world.
Yahoo
02-06-2025
- Automotive
- Yahoo
Assisted by increasing affordability, global EV adoption continues to rise
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Despite market disruptions in the global automotive industry — including U.S. tariffs — EV sales remain on an upward trajectory. That's according to a May report from the International Energy Agency, the global energy forum of 32 industrialized countries, including the United States. The IEA's annual Global EV Outlook predicts that more than a quarter of vehicles sold around the world in 2025 will be electric. In 2024, according to the report, more than 17 million EVs were sold worldwide, comprising more than 20% of all new vehicle sales. The number of sales grew by 25% compared to 2023. And sales only continue to grow: During the first quarter of 2025, global EV sales rose by 35% versus the same period in 2024. 'Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally,' IEA Executive Director Fatih Birol said in a statement, adding that EV sales are continuing to set new records. Birol also said that the share of EVs sold is expected to more than double within the next five years, reaching more than 40% of global car sales, thanks in large part to the growing affordability of EVs. Last year, the average worldwide price of an EV generally fell, according to the report. But pricing varied by country. In China, two-thirds of EVs sold were cheaper than similar gas-powered vehicles — even without discounts and other promotions. At the same time, the report noted that the limited share of affordable EV models in the U.S. has hurt EV take-up. On average, the price of an EV in the U.S. is 30% higher than a similar gas-powered car. In addition, more than 75% of cars sold in the U.S. are SUVs, but only about 20% of electric SUVs are cheaper than their gas-powered counterparts. The low prices of China's OEMs have rapidly accelerated EV adoption in China, where more than half of vehicles sold last year were EVs. But EV production in China is also driving increased EV sales around the world — China EV sales were actually responsible for nearly two-thirds of all EV purchases worldwide, per the report. The report also said that EV growth is accelerating in emerging economies, which include countries such as Brazil, India, Indonesia, Mexico and Thailand. In these regions, EV sales increased by more than 60% in 2024 alone. The increase is largely due to EV affordability, as the report noted the cheapest EVs in Brazil, India, Indonesia, Mexico and Thailand were made by China-based OEMs and were often the least expensive vehicles on the market — cheaper even than gas-powered vehicles, per the report. While EV sales increased in the U.S. in 2024, sales growth declined compared to 2023. Still, the EV market in the U.S. continues to expand; 24 new models were introduced in 2024, bringing the total number of new EV models brought to market since 2020 to 110, the report said. Recommended Reading ComEd offering $100M in rebates to drive EV growth in Illinois Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
02-06-2025
- Automotive
- Business Standard
IEA urges India to prioritise mobility electrification for energy security
India should focus "very" closely on mobility electrification to secure its energy future, and oil import-dependent countries should incentivise electric vehicles, International Energy Agency (IEA) Executive Director Fatih Birol said on Monday. He also said the world faces serious risks from the growing concentration of critical minerals, and urged countries to diversify mining and processing to avoid supply disruptions that could impact the energy transition. Countries, which are importing oil, should consider giving incentives to electric cars in order to reduce the inbound shipments from different parts of the world, Birol added. "In the case of India, I believe India should look at the electrification of mobility very closely because currently we have low oil prices, but it is definitely at the mercy of some of the key oil producers, where the oil prices will go up. If India wants to have the upper hand in terms of the domestic oil trajectories, electric cars are one of the key solutions," he told reporters after meeting Commerce and Industry Minister Piyush Goyal. Goyal is here on a three-day official visit. India is one of the drivers of the global clean energy transition, Birol said. India has achieved a huge success story, especially under the solar front, and this is good for India's economy and its energy security, he noted. "Every country has a different policy when it comes to electric cars, but countries who are importing oil, should consider giving incentives to electric cars in order to reduce the imports from different parts of the world, and at the same time, it is very important for the countries in terms of electric cars revolution, not to fall behind," he said. There is a need for, at least for the time being, to support consumers in terms of buying their first electric cars. Further, he said that electric cars are going "very" strongly around the world. About four years ago, he said only 3 per cent of all cars were electric, and this year, 25 per cent of cars sold are electric. "One out of four cars is electric. This is mainly because the electric cars are getting cheaper, slowly but surely. In many countries, electric cars and commercial cars, have the same prices, plus in most countries around the world, if not all, driving one kilometre of a car is cheaper with electricity than oil prices, unless oil prices go below USD 50," he added. The world is going to see that sooner or later, electric cars will be dominating the streets of the world. On the impact of trade war on energy transition, Birol said the critical minerals are key not only for energy transition, but also for the defence, and manufacturing of chips. "We are seeing a major concentration. This is a worry because we at the IEA believe that the best energy security policy is diversification. But when we look at the critical minerals, mining and processing, it is being more and more concentrated, and it's a serious risk for the next years to come," he said, urging all the countries to "try to diversify the mining and also refining and processing of key critical minerals otherwise, we may have unintended consequences of supply disruptions". Appreciating India's LED bulb programme, the ED said that Goyal is the architect of that, and it is one of the most successful programmes in the history of energy transition. "It made the Indian electrification system much less expensive, and we make it much more friendly. This programme, together with the Ujjwala programme, bringing clean cooking to the hundreds of millions of households, is another success story, together with providing electricity access to Indian villages," he said.
