MENA Newswire News Desk: Governments worldwide have allocated nearly $2 trillion in direct investment to clean energy initiatives since 2020, according to the latest report from the International Energy Agency (IEA). The report, titled State of Energy Policy 2024, reveals that this amount is almost three times the funds committed in the wake of the 2007-08 financial crisis. The bulk of these funds have been concentrated in China, the European Union, and the United States.
The report emphasizes the significant rise in government support and incentives for clean energy technologies, driven by a renewed focus on energy security due to recent global crises. Governments are prioritizing investments that not only reduce emissions but also enhance long-term energy security. One of the most notable areas of growth is domestic manufacturing, with incentives for technologies like low-emission vehicles, hydrogen, and batteries receiving substantial funding.
Since 2020, nearly 10% of all clean energy investments have been directed toward domestic manufacturing initiatives, the report highlights. These initiatives are key to strengthening energy independence and industrial capacity. At the consumer level, direct government support for energy-related measures during the peak of the global energy crisis amounted to $940 billion.
“The unprecedented level of policy and investment support for clean energy underscores its importance not only for climate goals but also for energy security,” said Laura Cozzi, IEA Director of Sustainability, Technology and Outlooks. “Trade policies and domestic manufacturing incentives show that clean energy is becoming central to industrial strategies.”
Energy performance standards have also seen a sharp rise in policy interventions. In 2023, over 35 countries, accounting for 20% of global greenhouse gas emissions, implemented new regulations aimed at improving energy efficiency. These standards target key industries and aim to drive the global transition to more sustainable energy sources.
The State of Energy Policy 2024 report provides a comprehensive overview of global energy policies by country and sector, highlighting key developments over the past year. The report also includes an open-access repository, the Energy Policy Inventory, which tracks over 5,000 energy-related policies worldwide, covering everything from government spending to regulatory and trade measures.