According to the World Energy Investment 2016 report of the International Energy Agency (IEA), the world’s investment in energy went down by 8 percent in 2015 as a result of cheap oil and gas as well as cost falls in the industry. Most of this fall was accounted by the US where the sector has been negatively affected by low prices, a boom in shale and cost deflation.
Despite the problems, China was the world’s biggest investor in energy around the globe with spending of $315billion last year and the investment in renewable energy remaining stable. 2015 saw about $313 billion invested in renewables and other low-carbon forms of energy worldwide, which accounts for about a fifth of the global investment in energy. Most of the investment in renewables was in electricity generation, in which green power takes a substantial proportion of available investment funds. In contrast, investment in unsustainable forms of energy went down by almost 40 percent.
The IEA’s report further said that global energy systems were undergoing “a broad reorientation” promoting low-carbon and green energy sources and greater energy efficiency. However, the agency said that investment in these must be boosted more if the objectives agreed on in Paris last year were to be achieved. To that end, IEA’s chief, Fatih Birol, commented that “We see a broad shift of spending towards cleaner energy. Government measures can work and are key to a successful energy transition. But while progress has been achieved, investors need clarity and certainty from policymakers. Governments must not only maintain, but heighten, their commitment to achieve energy security and climate goals.”