Governments worldwide have allocated nearly $2 trillion in direct investment for clean energy since 2020, according to a recent report from the International Energy Agency (IEA).
The inaugural edition of the report, titled State of Energy Policy 2024, indicates that this amount is nearly three times the funding committed after the financial crisis of 2007-08. The findings reveal that approximately 80 percent of this government spending has been concentrated in China, the European Union, and the United States.
Heightened support for clean energy technologies
Support and incentives from governments for clean energy technologies have reached unprecedented levels as policymakers increasingly prioritize energy security following various recent crises.
Growth in domestic manufacturing incentives
One notable area of public investment experiencing substantial growth is domestic manufacturing incentives for clean energy, which now account for nearly 10 percent of total government expenditure since the start of the decade. The largest shares of this funding have been directed toward low-emission vehicles, hydrogen, and battery technologies. On the consumer front, the report highlights that short-term government support reached a total of $940 billion during the peak of the global energy crisis.
Recognition of clean energy’s dual benefits
Laura Cozzi, IEA director of Sustainability, Technology, and Outlooks, noted that the extraordinary level of policy and investment support for clean energy highlights a recognition of the dual benefits these technologies provide: mitigating emissions and enhancing energy security. She also mentioned that the increase in trade policies and domestic manufacturing incentives further suggests that clean energy is becoming a fundamental element of industrial strategies.
Read more: UAE’s investment in clean energy reaches over $12.25 billion, says minister Al Mazrouei
Advancements in energy performance standards
Additionally, energy performance standards have seen significant policy advancements in recent years. In 2023 alone, 35 countries—accounting for 20 percent of global greenhouse gas emissions—implemented new energy performance regulations.
Comprehensive overview of energy policies
The first edition of the report offers the most thorough and current overview of energy policies by country and sector, showcasing major developments over the past year. It includes a publicly accessible repository—the Energy Policy Inventory—featuring over 5,000 energy-related policies globally across various domains, including government spending, regulation, and trade.
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