Governments clean energy spending reaches $1.2t: IEA

The investments were fuelled by energy security concerns.

Government spending globally has reached $1.2t since the start of the pandemic due to the energy crisis, according to a report by the International Energy Agency (IEA).

Since March alone, spending in support of clean energy saw an additional over $500b in funding.

The total allocation for clean energy resources covers 1,600 government financial measures from 67 countries. The amount can drive private investment which could raise to total by another 50% to over $2b in 2030.

On the other hand, nearly 95% of the energy investment support was from advanced economies, whilst emerging and developing economies have prioritised short-term measures to ensure the affordability of transport, electricity, and cooking fuels.

READ MORE: Global energy efficiency investments jump 16% YoY in 2022: IEA

“The responses from governments to the crisis are going in the right direction,” said IEA Executive Director Fatih Birol. 

“The unprecedented financial support we are seeing for clean energy transitions is improving energy security and dampening the impact of high fuel prices on customers. But there are worrying geographical imbalances, with many emerging and developing economies at risk of being left behind if the international community does not step in to help them mobilise much more clean energy investment,” Birol added.

Some of the largest clean energy investments were the results of the US Inflation Reduction Act and several measured from European countries.