The International Energy Agency has released its first-ever detailed analysis of investment across the global energy system.
Energy investment in the global economy totalled USD1.8 trillion in 2015, down 8 per cent from 2014. This decrease was caused by declining production costs across the energy sector and cuts to upstream oil and gas spending.
The report shows the electricity sector leading change in energy investment but warns more needs to be done to meet climate targets and address energy security concerns.
While releasing the report, IEA executive director Fatih Birol said there had been a broad shift of spending towards cleaner energy as a result of government policies.
“Our report clearly shows that such government measures can work, and are key to a successful energy transition. But while some progress has been achieved, investors need clarity and certainty from policy makers. Governments must not only maintain but heighten their commitment to achieve energy security and climate goals.”
Fossil fuels, including supply and power generation, still account for 55 per cent of total energy investment, but this is down from 61 per cent in 2014.
The share of renewables is up 1 per cent to 17 per cent.
Electricity generation spending reached USD420 billion and renewables accounted for around 70 per cent of the total.
The new report will be issued annually and provide a comprehensive look at investment in the energy sector – across fuels, technologies and countries.
For more information or to read the report click here.