Global Fossil Fuel Investment Increased in 2024

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Adi Ahdiat 16/07/2024 17:57 WIB

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According to the International Energy Agency, the global trend of fossil fuel investment has been increasing since 2021 and is expected to continue through 2024.

Global Fossil Fuel Investment Value per Year (2015-2024)*

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Global Fossil Fuel Investment Value per Year (2015-2024)*

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Global investment in the fossil fuel sector is estimated to reach US$1.12 trillion in 2024, a 2.4% increase compared to 2023 (year-on-year).

This upward trend has continued for four consecutive years since 2021, as shown in the graph.

This estimate is recorded in the *World Energy Investment 2024* report released by the International Energy Agency (IEA).

"Demand for fossil fuels remains strong, particularly after the world recovered from the period of major turbulence caused by the Covid-19 pandemic and the Russian invasion of Ukraine," the IEA stated in its report.

According to the IEA, the increase in fossil fuel investment for the upstream oil and gas sector is led by companies from the Middle East and Asia.

Global coal investment is also rising, driven by additional capital flows in Asia.

"Coal investment has increased since 2023, particularly in China, India, and Indonesia, with further growth expected in 2024," said the IEA.

While positive for the fossil fuel industry, this increase in investment rate is inconsistent with efforts to achieve net-zero emissions (NZE) targets and mitigate climate change.

"NZE scenarios show the need for a rebalancing of investments, shifting away from fossil fuels towards low-emission fuels such as bioenergy and hydrogen," said the IEA.

According to the IEA report, to achieve net-zero emissions by 2050, global investment in oil, gas, and coal needs to be reduced by more than half.

The IEA estimates that fossil fuel investment needs to fall from around US$1 trillion per year in 2024 to US$450 billion per year in 2030, while the budget for low-emission fuels needs to be increased tenfold.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."