Why in the News?
China will lead global energy investments in 2025, making up over a quarter of total spending, says the International Energy Agency’s (IEA) 10th edition Global Energy Investment Report, 2025.
Back2Basics: International Energy Agency (IEA)
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About the Global Energy Investment Report:
- Origin and Purpose: Officially titled World Energy Investment Report, is the IEA’s flagship annual publication.
- Published since 2016: To assess investment flows across the global energy system.
- Scope of Coverage: It tracks investments in fossil fuels, renewables, electricity supply, critical minerals, energy efficiency, R&D, and innovation financing.
- Strategic Value: The report helps determine if current investments support climate goals and universal energy access.
Key Highlights from the 2025 Report:
- China’s Role: China will account for over 25% of global energy investment, with over $625 billion in clean energy, though it also approved 100 GW of new coal plants in 2024.
- Global Trends: Clean energy investment will hit $2.2 trillion, over twice the amount spent on fossil fuels, yet still falls short of COP28 targets.
- Africa’s Investment Gap: Africa’s fossil fuel investment dropped from $125 billion to $54 billion, and it still receives only 2% of global clean energy funds, mainly due to debt burdens.
- India’s Position: India’s renewables investment rose from $13 billion (2015) to $37 billion (2025), while fossil fuel investment also increased. However, grid and storage spending declined to $25 billion.
- Financing Barriers: India’s high cost of capital—80% above advanced economies—limits clean energy growth. The “Baku to Belem Roadmap” seeks to mobilize $1.3 trillion by 2035 for such regions.
- Global Mismatch: While $1 trillion is spent annually on power generation, only $400 billion goes to grid infrastructure, affecting distribution capacity.
| [UPSC 2022] Consider the following statements:
1. The Climate Group” is an international non-profit organisation that drives climate action by building large networks and runs them. 2. The International Energy Agency in partnership with The Climate Group launched a global initiative “EP100”. 3. EP100 brings together leading companies committed to driving innovation in energy efficiency and increasing competitiveness while delivering on emission reduction goals. 4.Some Indian companies are members of EP100. 5. The International Energy Agency is the Secretariat to the “Under2 Coalition”. Which of the statements given above are correct? Options: (a) 1,2,4 and 5 (b) 1,3 and 4 only* (c) 2,3 and 5 only (d) 1,2,3,4 and 5 |
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