Ukraine war 'accelerated momentum' towards clean energy: International Energy Agency report

The war in Ukraine has led to multiple economic sanctions on Russia, disrupting the global oil supply. A recent report, however, suggests there may have been an inadvertent positive impact of the ongoing geopolitical situation.

According to the International Energy Agency's World Energy Investment 2023 report, the war, which began on February 24 last year, has "accelerated momentum behind the deployment of a range of clean energy technologies."

Annual investment into clean energy is expected to rise by 24 percent between 2021 and 2023, driven by Western countries trying to reduce their dependency on Russian energy supply. In the same period, investments in fossil fuels rose by 15 percent.

According to IEA's estimates, around $2.8 trillion will be invested in the energy sector this year, more than $1.7 trillion out of it going into clean energy.

Clean energy investments primarily go towards renewable power and electric vehicles, with low-emission fuels, efficiency improvements, end-use renewables and grids also attracting significant investments.

Notably, more money has been invested in clean energy than in fossil fuels since 2018, and the gap is widening. "For every $1 spent on fossil fuels, $1.7 is now spent on clean energy. Five years ago this ratio was 1:1," the global energy watchdog's report noted.

Solar - the 'star performer'

The IEA report has called solar as "star performer", arguing that solar investments will lead the ongoing revolution in low-emissions electricity technologies. Over $1 billion per day is expected to go into solar investments in 2023. In overall terms, investments worth $380 billion will go into the sector.

This is significant, as investments into solar power will outpace that in oil production for the first time his history. Fossil fuels, of which oil is a significant part, will attract over $1 trillion in investments this year.

"Historically, fossil fuels have dominated the energy sector. The fact that investments into solar has now surpass those into fossil fuels is a indication and validation of the growing recognition and potential and viability of renewable energy sources," Anand Jain, founder and CEO of Aerem, an Indian solar tech start-up, told wionnews.com.

The shift in the investment pattern highlights the growing awareness of the threat posed by carbon emissions by fossil fuels, which contributes to climate change and rising global temperatures.

However, investment into renewable energy, primarily solar, has been lopsided, with advanced economies and China accounting for majority of the investments in the last two years. As per an IEA estimate, solar PVs -- they are used to power panels -- make up almost half of new investment in renewable power. 

The unequal distribution of clean energy investment threatens to create deep divisions in global energy supply and deprive developing and less developed countries of clean energy.

Jain advocates a two-pronged approach to encourage increasing use of solar power in the global energy matrix. "Government measures like phasing out subsidies for fossil fuels and implementing carbon pricing mechanisms must be complimented with public awareness initiatives about the environmental consequences of conventional energy sources," he said.