Shift in Capital Flows Towards Renewables

Investment in clean energy technologies is now significantly outpacing capital allocation to fossil fuels, marking a pivotal shift in the energy landscape. The capital expenditure for renewables has doubled that of fossil fuels, with the latter's peak investment occurring nearly a decade ago. This trend indicates a growing commitment to decarbonization, as evidenced by the record levels of capacity being added from sources like solar and wind. However, experts caution that while current investments are promising, a substantial increase in funding is necessary to address the more challenging sectors of energy transition and achieve deep decarbonization.