WorldEnergy

Investment2023

INTERNATIONALENERGYAGENCY

TheIEAexaminesthefullspectrumofenergy

issuesincludingoil,gasandcoalsupplyand

demand,renewableenergytechnologies,

electricitymarkets,energyefficiency,accessto

energy,demandsidemanagementandmuch

more.Throughitswork,theIEAadvocates

policiesthatwillenhancethereliability,

affordabilityandsustainabilityofenergyinits31

membercountries,11associationcountriesand

beyond.

Thispublicationandanymapincludedhereinare

withoutprejudicetothestatusoforsovereignty

overanyterritory,tothedelimitationof

internationalfrontiersandboundariesandtothe

nameofanyterritory,cityorarea.

Revisedversion,May2023

Informationnoticefound:

/corrections

Source:IEA.

InternationalEnergyAgency

Website:

IEAmembercountries:

Australia

Austria

Belgium

Canada

CzechRepublic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Japan

Korea

Lithuania

Luxembourg

Mexico

Netherlands

NewZealand

Norway

Poland

Portugal

SlovakRepublic

Spain

Sweden

Switzerland

RepublicofTürkiye

UnitedKingdom

UnitedStates

TheEuropeanCommission

alsoparticipatesinthework

oftheIEA

IEAassociationcountries:

Argentina

Brazil

China

Egypt

India

Indonesia

Morocco

Singapore

SouthAfrica

Thailand

Ukraine

WorldEnergyInvestment2023

Abstract

PAGE|3

Abstract

Thisyear’seditionoftheWorldEnergyInvestmentprovidesafull

updateontheinvestmentpicturein2022andaninitialreadingofthe

emergingpicturefor2023.

Thereportprovidesaglobalbenchmarkfortrackingcapitalflowsin

theenergysectorandexamineshowinvestorsareassessingrisks

andopportunitiesacrossallareasoffuelandelectricitysupply,

criticalminerals,efficiency,researchanddevelopmentandenergy

finance.

Itfocusesonsomeimportantfeaturesofthenewinvestment

landscapethatarealreadyvisible,includingthepoliciesnowinplace

thatreinforceincentivesforcleanenergyspending,theenergy

securitylensthroughwhichmanyinvestmentsarenowviewed,

widespreadcostandinflationarypressures,themajorboostin

revenuesthathighfuelpricesarebringingtotraditionalsuppliers,

andburgeoningexpectationsinmanycountriesthatinvestmentswill

bealignedwithsolutionstotheclimatecrisis.

WorldEnergyInvestment2023

Tableofcontents

Sustainablefinance 154

Overview

155

Tableofcontents

Implications 150

Introduction

5

Overviewandkeyfindings 7

Sustainableinvesting159

Powersector 25

Sustainabledebtissuances166

Overviewofpowerinvestment 26

Annex174

Generation 31

Finalinvestmentdecisions(FIDs) 41

Electricitygridsandbatterystorage 48

Implications 55

Fuelsupply 58

Overview 59

Upstreamoilandgas 66

Midstreamanddownstreamoilandgas 73

Oilandgasindustrytransitions 79

Low-emissionfuels 84

Coal 97

Criticalminerals 101

Implications 105

Energyenduseandefficiency 108

Buildings 111

Transport 117

Industry 124

Implications 128

R&Dandtechnologyinnovation 131

SpendingonenergyR&D 133

VCfundingofearly-stageenergytechnologycompanies 141

PAGE|4

WorldEnergyInvestment2023

Introduction

PAGE|5

Introduction

WorldEnergyInvestment2023

Introduction

PAGE|6

Aturningpointforenergyinvestment?

ThisnewWorldEnergyInvestment2023(WEI2023)reportistheeighthinour

annualseries

whereweprovidetheglobalbenchmarkfortrackingcapitalflowsintheenergysector.Thelastfewyearshavebeenaperiodofextremedisruptionfortheenergysector.ThenewWEI2023offersanopportunitytotakestockofwhatthishasmeantforinvestment,andwhatthoseinvestmentsmightmeaninturnforthefuturesecurityandsustainabilityoftheenergysector.

Theshocktothesystemfromtheglobalenergycrisishascomeatatimeofincreasinglyvisibleimpactsofachangingclimateandhastakenmanyforms.Pricespikescreatedstrongeconomicincentivestoincreasesupplyandtofindalternativeormoreefficientwaystomeetdemand.Energysecurityshockscreatedpowerfulincentivesforpolicymakerstoreducevulnerabilitiesanddependencies,whilealso–formanydevelopingeconomiesinparticular–drainingthefinancialresourcesavailabletoaddressthem.

InthenewWEI2023weprovideafullupdateontheinvestmentpicturein2022andaninitialreadingoftheemergingpicturefor2023.Hugeuncertaintiesremainoverhoweventswillplayout.Butsomeimportantfeaturesofthenewinvestmentlandscapearealreadyvisible,includingthepoliciesnowinplacethatreinforceincentivesforcleanenergyspending,theenergysecuritylensthroughwhichmanyinvestmentsarenowviewed,widespreadcostandinflationary

pressures,themajorboostinrevenuesthathighfuelpricesarebringingtotraditionalsuppliers,andburgeoningexpectationsinmanycountriesthatinvestmentswillbealignedwithsolutionstotheclimatecrisis.Thestructureofthisyear’sWEI2023isasfollows:

InChapter1wepresenttheoverviewandkeyfindings.Chapter2coversthepowersector,whileChapter3reviewsthelatestdevelopmentsandtrendsinfuelsupplyinvestment.Chapter4dealswithinvestmentinenergyefficiencyandtheend-usesectors,andChapter5bringsinsightsonenergyresearchanddevelopmentandinnovation.TheconcludingChapter6considerstrendsinenergyfinance.

WhilethefocusofWEI2023istotrackinvestmentandfinancingtrendsin2022andprovideanearlyindicationfor2023,thereportalsobenchmarkstoday’strendsagainstfuturescenariosfromtheIEA

WorldEnergyOutlook

.TheStatedPoliciesScenario(STEPS)isbasedontoday’spolicysettingsandconsidersaspirationaltargetsonlyinsofarastheyarebackedbydetailedpolicies.TheAnnouncedPledgesScenario(APS)assumesthatallclimatecommitmentsandnetzerotargetsmadebygovernmentsaroundtheworldwillbemetinfullandontime.TheNetZeroEmissionsby2050Scenario(NZEScenario)setsoutanarrowbutachievablepathwayfortheglobalenergysectortoachievenetzeroCO2emissionsby2050.

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|7

Overviewandkeyfindings

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|8

USD(2022)

Billion

2000

Cleanenergy

1600

Fossilfuels

1200

800

400

TherecoveryfromtheCovid-19pandemicandtheresponsetotheglobalenergycrisishave

providedamajorboosttoglobalcleanenergyinvestment

Globalenergyinvestmentincleanenergyandinfossilfuels,2015-2023e

201520162017201820192020202120222023e

IEA.CCBY4.0.

Note:2023e=estimatedvaluesfor2023.

WorldEnergyInvestment2023

Overviewandkeyfindings

BillionUSD(2022)

Increasesacrossalmostallcategoriespushanticipatedspendingin2023uptoa

recordUSD2.8trillion

700

600

500

400

300

200

100

Energy-sectorinvestment,2019-2023e

Power

Enduseinvestment

investment

Fuelsupply

investment

2019

2020

2021

2022

2023e

Upstreamoilandgas

2019

2020

2021

2022

2023e

Midstreamoilandgas

2019

2020

2021

2022

2023e

Coal

2019

2020

2021

2022

2023e

Low-

emissionfuels

2019

2020

2021

2022

2023e

Renewables

2019

2020

2021

2022

2023e

Fossil

2019

2020

2021

2022

2023e

Gridsandstorage

2019

2020

2021

2022

2023e

Nuclear

2019

2020

2021

2022

2023e

Efficiency

2019

2020

2021

2022

2023e

Electrification

andother

IEA.CCBY4.0.

Notes:“Low-emissionfuels”includemodernliquidandgaseousbioenergy,low-emissionhydrogenandlow-emissionhydrogen-basedfuels;“Otherenduse”referstorenewablesforenduseandelectrificationinthebuildings,transportandindustrialsectors.Thetermsgridsandnetworksareusedinterchangeablyinthisreportanddonotdistinguishbetweentransmissionanddistribution;2023e=estimatedvaluesfor2023..

PAGE|9

WorldEnergyInvestment2023

Overviewandkeyfindings

USD(2022)

Billion

Renewables,ledbysolar,andEVsareleadingtheexpectedincreaseincleanenergy

investmentin2023

2000

1600

1200

800

400

Annualcleanenergyinvestment,2015-2023e

201520162017201820192020202120222023e

Low-emissionfuels

andCCUS

Nuclear

Batterystorage

EVs

Grids

Otherenduse

Energyefficiency

Renewablepower

IEA.CCBY4.0.

Notes:“Low-emissionfuels”includemodernliquidandgaseousbioenergy,low-emissionhydrogenandhydrogen-basedfuelsthatdonotemitanyCO2fromfossilfuelsdirectlywhenusedandemitverylittlewhenbeingproduced;“Otherenduse”referstorenewablesforenduseandelectrificationinthebuildings,transportandindustrialsectors.2023e=estimatedvaluesfor2023;CCUS=carboncapture,utilisationandstorage;EV=electricvehicle.

PAGE|10

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|11

100%

80%

60%

40%

20%

Lessthanhalfoftheoilandgasindustry’sunprecedentedcashflowfromtheenergycrisisis

goingbackintotraditionalsupplyandonlyasmallfractiontocleantechnologies

Distributionofcashspendingbytheoilandgasindustry,2008-2022

200820092010201120122013201420152016201720182019202020212022

Netdebtrepaid

Dividendsplus

buybacksminus

issuances

Low-carbon

capital

expenditure

Oilandgas

capital

expenditure

IEA.CCBY4.0.

Source:IEAanalysisbasedondatafromS&PCapitalIQ.

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|12

Themomentumbehindcleanenergyinvestment

climateandenergysecuritygoals,andindustrial

TherecoveryfromtheslumpcausedbytheCovid-19pandemicandtheresponsetotheglobalenergycrisishaveprovidedasignificantboosttocleanenergyinvestment.Comparingourestimatesfor2023withthedatafor2021,annualcleanenergyinvestmenthasrisenmuchfasterthaninvestmentinfossilfuelsoverthisperiod(24%vs15%).OurnewanalysishighlightshowtheperiodofintensevolatilityinfossilfuelmarketscausedbytheRussianFederation’s(hereafter“Russia”)invasionofUkrainehasacceleratedmomentumbehindthedeploymentofarangeofcleanenergytechnologies,evenasitalsopromptedashort-termscrambleforoilandgassupply.

WeestimatethataroundUSD2.8trillionwillbeinvestedinenergyin2023.MorethanUSD1.7trillionisgoingtocleanenergy,includingrenewablepower,nuclear,grids,storage,low-emissionfuels,efficiencyimprovementsandend-userenewablesandelectrification.Theremainder,slightlyoverUSD1trillion,isgoingtounabatedfossilfuelsupplyandpower,ofwhicharound15%istocoalandtheresttooilandgas.ForeveryUSD1spentonfossilfuels,USD1.7isnowspentoncleanenergy.Fiveyearsagothisratiowas1:1.

Cleanenergyinvestmentshavebeenboostedbyavarietyoffactors.Theseincludeimprovedeconomicsatatimeofhighandvolatilefossilfuelprices;enhancedpolicysupportthroughinstrumentsliketheUS

stemsfromapowerfulalignmentofcosts,strategies

InflationReductionActandnewinitiativesinEurope,Japan,thePeople’sRepublicofChina(hereafter“China”)andelsewhere;astrongalignmentofclimateandenergysecuritygoals,especiallyinimport-dependenteconomies;andafocusonindustrialstrategyascountriesseektostrengthentheirfootholdsintheemergingcleanenergyeconomy.

ThismomentumhasbeenledbyrenewablepowerandEVs,withimportantcontributionsalsofromotherareassuchasbatteries,heatpumpsandnuclearpower.In2023low-emissionspowerisexpectedtoaccountforalmost90%oftotalinvestmentinelectricitygeneration.SolaristhestarperformerandmorethanUSD1billionperdayisexpectedtogointosolarinvestmentsin2023(USD380billionfortheyearasawhole),edgingthisspendingabovethatinupstreamoilforthefirsttime.

Consumersareinvestinginmoreelectrifiedenduses.Demandforelectriccarsisbooming,withsalesexpectedtoleapbymorethanone-thirdthisyearafterarecord-breaking2022.Asaresult,investmentinEVs(definedastheincrementalspendingonEVsvstheaveragepriceofvehiclessoldinagivencountry)hasmorethandoubledsince2021,reachingUSD130billionin2023.Globalsalesofheatpumpshaveseendouble-digitgrowthsince2021.

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|13

Theincreaseinfossilfuelinvestmentexpectedin2023isunevenlyspreadaroundtheworld;

lessthanhalfthecashflowavailabletotheoilandgasindustryisgoingbackintonewsupply

2022wasanextraordinarilyprofitableyearformanyfossilfuelcompanies,astheysawrevenuessoaronhigherfuelprices.Netincomefromfossilfuelsalesmorethandoubledcomparedwiththeaverageinrecentyears,withglobaloilandgasproducersreceivingaroundUSD4trillion.

Ouroverallexpectation,basedonanalysisoftheannouncedspendingplansofallthelargeandmedium-sizedoil,gasandcoalcompanies,isthatinvestmentinunabatedfossilfuelsupplyissettorisebymorethan6%in2023,reachingUSD950billion.

Thelargestshareofthistotalisgoingtoupstreamoilandgas,whereinvestmentisexpectedtoriseby7%in2023tomorethanUSD500billion,bringingthisindicatorinaggregatebacktothelevelsof2019.Aroundhalfthisincreaseislikelytobeabsorbedbycostinflation.

Manylargeoilandgascompanieshaveannouncedhigherspendingplansonthebackofrecordrevenues.Butuncertaintiesoverlonger-termdemand,worriesaboutcosts,andpressurefrommanyinvestorsandownerstofocusonreturnsratherthanproductiongrowthmeanonlylargeMiddleEasternnationaloilcompaniesarespendingmuchmorein2023thantheydidin2022,andtheyaretheonlysubsetoftheindustryspendingmorethanpre-pandemiclevels.

Theheadlineriseinspendingonnewoilandgassupplyrepresentslessthanhalfofthecashflowthatwasavailabletotheoilandgasindustry.Between2010and2019,three-quartersofcashoutflowsweretypicallyinvestedintonewsupply.Thisisnowlessthanhalf,withthemajoritygoingtodividends,sharebuybacksanddebtrepayment.

Investmentbytheoilandgasindustryinlow-emissionssourcesofenergyislessthan5%ofitsupstreaminvestment.Thisindicatordifferswidelybycompany,withdouble-digitsharescommonamongthelargeEuropeancompanies.Investmentbytheindustryincleanfuels,suchasbioenergy,hydrogenandCCUS,ispickingupinresponsetomoresupportivepoliciesbutremainswellshortofwhereitneedstobeinclimate-drivenscenarios.

Investmentincoalsupplyisexpectedtoriseby10%in2023,andisalreadywellabovepre-pandemiclevels.Investmentinnewcoal-firedpowerplantsremainsonadecliningtrend,butawarningsigncamein2022with40GWofnewcoalplantsbeingapproved–thehighestfiguresince2016.AlmostallofthesewereinChina,reflectingthehighpoliticalpriorityattachedtoenergysecurityaftersevereelectricitymarketstrainsin2021and2022,evenasChinadeploysarangeoflow-emissiontechnologiesatscale.

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|14

ChinaEuropeanUnion UnitedStatesJapan

India

Africa BrazilMiddleEastIndonesia

Russia

Theincreaseincleanenergyspendinginrecentyearsisimpressivebutheavilyconcentratedin

ahandfulofcountries

Increaseinannualcleanenergyinvestmentinselectedcountriesandregions,2019-2023e

-10

Note:2023e=estimatedvaluesfor2023.

20

50

80

110

140

170200

BillionUSD(2022)

IEA.CCBY4.0

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|15

Index(2019Q4=100)

MillionUSD/MW(nominalprices)

USD/kWh(nominalprices)

250

200

150

100

EVbatteries(RHaxis)

Storagebatteries

Wind

turbines

Solar

panels

Cleanenergycostsedgedhigherin2022,butpressuresareeasingin2023andmatureclean

technologiesremainverycost-competitiveintoday’sfuel-priceenvironment

IEAcleanenergyequipmentpriceindex

50

201420152016201720182019202020212022

Averagepricesforselectedtechnologies

2.5

2.0

1.5

1.0

0.5

201420152016201720182019202020212022

500

400

300

200

100

IEA.CCBY4.0.

Notes:TheIEAcleanenergyequipmentpriceindextrackspricemovementsofafixedbasketofequipmentproductsthatarecentraltothecleanenergytransition,weightedaccordingtotheirshareofglobalaverageannualinvestmentin2020-2022:solarPVmodules(48%),windturbines(36%),EVbatteries(13%)andutility-scalebatteries(3%).PricesaretrackedonaquarterlybasiswithQ42019definedas100.

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|16

Notesofcautionamidrisingmomentumbehindcleanenergytransitions

Thepositivemomentumbehindcleanenergyinvestmentisnotdistributedevenlyacrosscountriesorsectors,highlightingissuesthatpolicymakerswillneedtoaddresstoensureabroad-basedandsecuretransition.Themacroeconomicenvironmentpresentsadditionalobstacles,withhighershort-termreturnsforfossilfuelassetsandrisingborrowingcostsanddebtburdens.Cleanenergyinvestmentsoftenrequirehighupfrontspending,makingthecostoffinancingacrucialvariableforinvestors,evenifthisisoffsetovertimebyloweroperatingcosts.

Morethan90%oftheincreaseincleanenergyinvestmentsince2021hastakenplaceinadvancedeconomiesandChina.Therearebrightspotselsewhere:forexample,solarinvestmentremainsdynamicinIndia;deploymentinBrazilisonasteadyupwardcurve;andinvestoractivityispickingupinpartsoftheMiddleEast,notablyinSaudiArabia,theUnitedArabEmiratesandOman.However,higherinterestrates,unclearpolicyframeworksandmarketdesigns,financially-strainedutilitiesandahighcostofcapitalareholdingbackinvestmentinmanyothercountries.Remarkably,theincreasesincleanenergyinvestmentinadvancedeconomiesandChinasince2021exceedtotalcleanenergyinvestmentintherestoftheworld.

Afteranunbrokenrunofcostdeclines,pricesforsomekeycleanenergytechnologiesrosein2021and2022thankslargelytohigherinputpricesforcriticalminerals,semiconductorsandbulkmaterials

likesteelandcement.SolarPVmoduleswerearound30%moreexpensiveinearly2022thanoneyearearlier,althoughthesepricepressureshaveeasedsince.Windturbinecosts,especiallyforEuropeanmanufacturers,remainedhighinearly2023,at30%abovethelowlevelsofearly2020.Permittinghasbeenakeyconcernforinvestorsandfinanciers,especiallyforwindandgridinfrastructure.

Whilesolardeploymenthasbeenincreasingyear-on-year,theprojectpipelineforsomeothertechnologieshasbeenlessreliable.Investmentinwindpowerhasvariedyear-on-yearinkeymarketsinresponsetochangingpolicycircumstances.Nuclearinvestmentisrisingbuthydropower,akeylow-emissionsourceofpowermarketflexibility,hasbeenonadownwardtrend.

Weakgridinfrastructureisalimitingfactorforrenewableinvestmentinmanydevelopingeconomies,andheretoocurrentinvestmentflowsarehighlyconcentrated.AdvancedeconomiesandChinaaccountfor80%ofglobalspendingandforalmostallofthegrowthinrecentyears.

Ouranalysispresentsamixedpictureontheprospectsforenergyefficiencyandenduseinvestments.Theyrosein2022thankstothestimulusprovidedbynewpoliciesinEuropeandNorthAmerica,alongsideexceptionallyhighenergyprices.However,weexpectspendingtoflattenin2023amidaslowdowninconstructionactivity,higherborrowingcostsandstrainsonhouseholdbudgets.

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|17

BillionUSD(2022)

Bcmperyear

30

15

0

-15

-30

-45

CutsinRussiangasdeliveriestoEuropehavepromptedhigherinvestmentinalternative

sourcesofsupplyandinLNGinfrastructure

ChangeinglobalinvestmentinnaturalgassupplyAnnualLNGimportandexportcapacityadditions

-60

20192020202120222023e

Notes:“Gassupplyinvestment”includesupstreamandtransport(LNGliquefaction,shipping2023e=estimatedvaluesfor2023.

120

100

80

60

40

20

20192021202320252027

ImportExport

IEA.CCBY4.0.

andregasificationandpipelinetransmissionanddistribution).

WorldEnergyInvestment2023

Overviewandkeyfindings

MW

MtCO2/yr

Strongpolicysignalsandnewsupportschemeshavetriggeredarapidexpansionintheproject

pipelinesforlow-emissionshydrogenandCCUS

CapacityadditionsforhydrogenelectrolysisandCO2captureprojectsbyannouncedstartdate,2017-2026

Hydrogenelectrolysis

30

25

20

15

10

5

CCUS

90

75

60

45

30

15

NorthAmericaEuropeLatinAmericaChinaAsiaPacificMiddleEastOther

IEA.CCBY4.0.

Notes:GW=GWofelectricityinput;foryearsbefore2023,actualstartdatesareshown;for2023onwards,scheduledstartdatesasannouncedbydevelopersareshown;CCUScoversallsourcesofCO2,includinglow-emissionhydrogenprojectsusingCCUS;dataincludeprojectsatthe“feasibility”stageandbeyond.

Sources:IEAanalysisbasedon

IEAhydrogenprojectdatabase,

CCUSprojectsdatabase

andrecentannouncements.

PAGE|18

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|19

Gasinvestmentsarecaughtbetweenimmediateshortfallsandlonger-termuncertainty,

althoughlow-emissionopportunitiesaregrowing

RussiacutpipelinedeliveriesofnaturalgastotheEuropeanUnionbyaround80%in2022,seekingleveragebyexposingconsumerstohigherenergybillsandsupplyshortagesfollowingitsinvasionofUkraine.Thisledtostrongpriceandpolicyincentivesforinvestorstostepupnon-Russiangassupply,buildupalternativedeliveryinfrastructure,andscaleupalternativestonaturalgas.Alloftheseeffectsarevisibleinouranalysis.

Theamountofnewoilandgasresourcesapprovedfordevelopmentin2022and2023hasbeenbelowtheaveragelevelseenoverthepastdecade.However,2023isseeinga25%increaseinnewapprovalsrelativeto2022andmostofthesearefornaturalgas,reflectingthepushtosubstitutefortheshortfallinRussiansupply.

Awaveofnewregasificationcapacityisalsounderwayascountrieslooktosecureliquefiednaturalgas(LNG)imports.Europe’sannualregasificationcapacityissettoincreaseby50bcmfrom2022-2025,expandingthecontinent’soverallLNGimportcapacitybyone-fifth.ImportprojectsaregrowingevenmorequicklyinAsia,whichissettoaddover100bcmofLNGimportcapacityby2025(morethanhalfinChina).

Thecrisishasalsopromptedadditionalinvestmentinliquefactioncapacity,themostexpensivepartofthegasvaluechain.Around

60bcmofcapacityhasbeengiventhegreenlightsinceRussia’sinvasionofUkraine,nearlydoubletherateofnewapprovalscomparedwiththepastdecade.Alongwithprojectsalreadyunderconstruction,thisleadstoanunprecedented170bcmofexportcapacitythatcouldcomeintooperationbetween2025and2027.

Akeydilemmaforinvestorsundertakinglarge,capital‐intensivegassupplyprojectsishowtoreconcilestrongnear‐termdemandgrowthwithuncertainandpossiblydeclininglonger-termdemand.ThisisaparticularissueforEurope,giventhecontinent’sstrongclimategoals.Manyimportershavebeenreluctanttocommittolong-termcontractsforgassupply.Apreferenceforfloatingregasificationterminalshasbeenawaytoavoidlockinginfutureemissions.

Anotheravenueistoexpandinvestmentinlow-emissionfuelsandinCCUS.Newpoliciesareswellingtheprojectpipelineintheseareas,drivenbyenergysecurityandclimateimperatives.Europehasaburgeoningnumberofelectrolytichydrogenprojects,andreinforcedUSincentivesintheInflationReductionActhavepromptedawaveofinvestorinterestinhydrogenandCCUS.Afteranumberoffalsedawns,thenumberoflarge-scaleprojectsandwell-capitalisedsponsors,alongwithastringofacquisitionsbyoilandgasmajors(notablyintransportbiofuelsandbiogases),suggeststhatinvestmentinlow-emissionfuelscouldgrowstronglyinthecomingyears.

WorldEnergyInvestment2023

Overviewandkeyfindings

PAGE|20

TWh

BillionUSD(2022)

8

6

4

2

Investmentisflowingtocleanenergymanufacturingandcriticalminerals,butensuringwell-

sequencedgrowthofnewsupplychainswillbeamajortask

Lithium-ionbatterymanufacturingcapacity

2022

2025

2030

50

40

30

20

10

Capitalexpenditurebymajorminingcompanies

inthenon-ferrousmetals

20182019202020212022

ChinaEuropeUnitedStatesRestofworldDiversifiedmajorCu,Ni,CospecialistLithiumspecialist

IEA.CCBY4.0.

Notes:Cu=copper;Ni=nickel;Co=cobalt;the