Global spending on renewables, nuclear, energy efficiency and low-emissions fuels like hydrogen is set to eclipse $2 trillion in 2024, double the $1 trillion spent on fossil fuels, according to the International Energy Agency’s annual review of global energy spending. The transformation is particularly strong in the power sector, where worldwide investment in solar ($500 billion) is set to exceed spending on all other forms of power generation combined. The IEA’s annual World Energy Investment report is closely tracked by industry analysts as a leading indicator for trends in the energy industry. This year’s report predicts that spending on clean energy will grow by almost 6 percent, up from nearly $1.9 trillion in 2023. The report also notes an uptick in clean energy spending in emerging markets, a critical development for reaching the world’s climate targets. And it provides evidence that the wave in green energy spending sought by President Joe Biden, with passage of the Inflation Reduction Act in 2022, is starting to take root. U.S. spending on clean energy is projected to increase by $300 billion this year. The findings are particularly notable because they come at a time when high interest rates threaten to stymie the expansion of cleaner energy sources. But the impact of higher borrowing costs has been offset by easing supply chain constraints and continued cost declines in renewable energy technologies, the IEA said.

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