Governments worldwide earmarked nearly USD 2 trillion to clean energy investment since 2020: IEA report

Governments worldwide have committed nearly USD 2 trillion in direct investment for clean energy since 2020, according to a new report from the International Energy Agency (IEA). The inaugural edition of the “State of Energy Policy 2024” report highlights that this amount is almost three times greater than the funding allocated after the 2007-08 financial crisis. It reveals that about 80% of this government spending has come from China, the European Union, and the United States.

The report indicates that support and incentives for clean energy technologies have reached unprecedented levels as policymakers prioritize energy security amid various recent crises. One notable area of growth in public investment is domestic manufacturing incentives for clean energy, which now account for nearly 10% of total government spending since the start of the decade, with significant funds directed towards low-emission vehicles, hydrogen, and batteries. Additionally, it notes that the cost of short-term government support reached USD 940 billion during the peak of the global energy crisis.

“The extraordinary level of policy and investment backing for clean energy acknowledges that these technologies not only cut emissions but also enhance energy security,” said Laura Cozzi, IEA Director of Sustainability, Technology, and Outlooks. She added that the rise in trade policies and manufacturing incentives indicates that clean energy is becoming a key component of industrial strategies.

The report also highlights a significant increase in energy performance standards due to policy interventions, with 35 countries—accounting for 20% of global greenhouse gas emissions—implementing new energy performance regulations in 2023 alone.

This edition of the report presents a thorough and current overview of global energy policies by country and sector, emphasizing the most significant developments over the past year. It features a publicly accessible resource, the Energy Policy Inventory, which catalogs over 5,000 energy-related policies worldwide across various domains such as government spending, regulation, and trade.

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