India leads investment in sustainable energy

The International Energy Agency (IEA), India is fast becoming a global leader in clean energy investment, exceeding spending on fossil fuels, as the nation accelerates its move towards sustainable energy alternatives. More than $1.7 trillion of the $2.8 trillion in predicted worldwide energy investments for 2023 is anticipated to go towards clean technologies like renewable energy, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency upgrades, and heat pumps. In comparison, it is anticipated that investments in coal, gas, and oil will total just over $1 trillion. India’s robust clean energy industry is experiencing remarkable growth, with solar investments taking centrestage. The IEA report emphasizes that solar power is poised to overtake investments in oil production for the first time, underscoring India’s commitment to renewable energy sources. Highlighting India’s achievement in clean energy, IEA executive director Fatih Birol said, “Clean energy is moving fast faster than many people realise. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels. One shining example is investment in solar, which is set to overtake the amount of investment going into oil production for the first time." India’s clean energy drive is fuelled by a combination of factors. Strong economic growth, coupled with concerns about energy security in the face of global energy crises, has propelled the country towards cleaner alternatives. Furthermore, India’s proactive policy support, including favourable regulations and incentives, has played a pivotal role in attracting significant investments. The country’s clean energy momentum extends beyond solar power. India has witnessed a substantial surge in electric vehicle (EV) adoption, with sales projected to increase by a third this year following impressive growth in 2022. Additionally, India’s commitment to electrified end-uses is evident in the double-digit annual growth of global heat pump sales since 2021. While India leads the way in clean energy investment, the IEA report highlights the need for global efforts to ensure equitable and widespread clean energy transitions. The majority of the increase in clean energy investments is coming from advanced economies and China, raising concerns about potential divisions in global energy dynamics if other regions do not accelerate their clean energy adoption. Addressing the investment gap, Birol stressed the importance of international collaboration, stating, “Much more needs to be done by the international community, especially to drive investment in lower-income economies, where the private sector has been reluctant to venture."