LONDON: Global investment in clean energy technology and infrastructure is set to hit $2 trillion this year, twice the amount going into fossil fuels, an International Energy Agency report showed.

Total energy investment is expected to exceed $3 trillion for the first time in 2024, the IEA said in its annual World Energy Investment report.

Some $2 trillion is set to go to clean technologies – including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps - with the rest directed towards gas, oil and coal.

Combined investment in renewable power and grids overtook the amount spent on fossil fuels for the first time in 2023.

"For every dollar going to fossil fuels today, almost two dollars are invested in clean energy," said IEA Executive Director Fatih Birol.

"The rise in clean energy spending is underpinned by strong economics, continued cost reductions and by considerations of energy security," he added.

China is set to account for the largest share of clean energy investment in 2024 with an estimated $675 billion, while Europe is set to account for $370 billion and the United States $315 billion.

More spending is focused on solar photovoltaic (PV) than any other electricity generation technology with investment set to grow to $500 billion in 2024 due to falling solar module prices.

Global upstream oil and gas investment is expected to increase by 7% in 2024 to $570 billion, following a similar rise in 2023. This was mostly led by national oil companies in the Middle East and Asia, the report said.

However, there are still shortfalls in energy investment in parts of the world such as emerging economies and developing economies outside China, it added. (Reporting by Nina Chestney; Editing by Alexander Smith)