World Energy Investment 2023
Introduction
- Purpose: The 2023 edition of the World Energy Investment (WEI) report serves as the eighth annual benchmark for tracking capital flows in the energy sector.
- Context: The past few years have been marked by significant disruptions in the energy sector, driven by the global energy crisis and the impacts of climate change.
- Key Features:
- Reinforced incentives for clean energy spending through existing policies.
- Growing emphasis on energy security.
- Widespread cost and inflationary pressures.
- Increased revenues for traditional suppliers due to high fuel prices.
- Rising expectations that investments will align with climate solutions.
Overview and Key Findings
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Clean Energy Investment Recovery: The recovery from the COVID-19 pandemic and the global energy crisis has significantly boosted global clean energy investment.
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Investment Trends: The graph below shows the investment in clean energy and fossil fuels from 2015 to 2023 (estimated for 2023).
- Clean Energy Investment: From 2015 to 2022, clean energy investment has steadily increased.
- Fossil Fuels: Investment in fossil fuels has shown a mixed trend, with notable fluctuations influenced by market conditions.
Structure of the Report
- Chapter 1: Overview and key findings.
- Chapter 2: Power sector.
- Chapter 3: Fuel supply.
- Chapter 4: Energy efficiency and end-use sectors.
- Chapter 5: Energy research and development and innovation.
- Chapter 6: Trends in energy finance.
Future Scenarios
- Stated Policies Scenario (STEPS): Based on current policy settings, considering aspirational targets only if backed by detailed policies.
- Announced Pledges Scenario (APS): Assumes all climate commitments and net zero targets will be fully met and on time.
- Net Zero Emissions by 2050 Scenario (NZE Scenario): Outlines a narrow but achievable pathway for achieving net-zero CO2 emissions by 2050.
Conclusion
- The report provides a comprehensive update on investment trends in 2022 and an initial outlook for 2023, while also benchmarking these trends against future scenarios from the IEA World Energy Outlook.
This summary captures the main points and key data presented in the World Energy Investment 2023 report.