Governments worldwide have significantly increased their financial commitment to renewable energy, with direct investment support reaching $2 trillion since 2020, according to the International Energy Agency (IEA).
This amount is nearly three times the level of investment seen after the 2007-2008 financial crisis. The IEA's State of Energy Policy 2024 report notes that the majority of this spending—about 80%—has been concentrated in China, the European Union, and the United States.
One key area of focus in the report is the growth of domestic manufacturing incentives for clean energy technologies, which have accounted for nearly 10% of total government spending over the past few years.
This surge in investment reflects the recognition that clean energy not only reduces emissions but also strengthens energy security. IEA's director of Sustainability, Technology and Outlooks, Laura Cozzi, highlighted the critical role of these policies in promoting the energy transition.
At the consumer level, the report revealed that short-term government support during the global energy crisis reached $940 billion. While many emergency measures have since been scaled back, various programmes remain in place to ease the adoption of clean energy technologies, addressing upfront costs and maintaining affordability and competitiveness.
The IEA also pointed to the rise in trade policies promoting domestic manufacturing and energy security, with nearly 200 new measures introduced since 2020. Additionally, energy performance regulations have expanded globally, with 35 countries enacting new standards last year. However, some countries have rolled back regulations on fossil fuel use, though these reversals have had a limited impact on global emissions, offset by stricter measures in other regions.
