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By Sharon Kimathi, Energy and ESG Editor, Reuters Digital

Hello!

This week ends on a positive note as global investment in clean energy technology and infrastructure is set to hit $2 trillion this year, twice the amount going into fossil fuels, an International Energy Agency report showed.

Total energy investment is expected to exceed $3 trillion for the first time in 2024, the IEA said in its annual World Energy Investment report.

Some $2 trillion is set to go to clean technologies – including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps – with the rest directed towards gas, oil and coal.

Combined investment in renewable power and grids overtook the amount spent on fossil fuels for the first time in 2023.

“For every dollar going to fossil fuels today, almost two dollars are invested in clean energy,” said IEA Executive Director Fatih Birol.

“The rise in clean energy spending is underpinned by strong economics, continued cost reductions and by considerations of energy security,” he added.

China is set to account for the largest share of clean energy investment in 2024 with an estimated $675 billion, while Europe is set to account for $370 billion and the United States $315 billion.

More spending is focused on solar photovoltaic (PV) than any other electricity generation technology with investment set to grow to $500 billion in 2024 due to falling solar module prices.

1. Fires in Brazilian wetlands surge 980%, extreme drought expected

Fires in Brazil’s Pantanal wetlands have surged nearly tenfold so far this year to the highest levels since 2020, when the biome suffered its worst blazes on record.

Satellite data from Brazil’s National Institute for Space Research (INPE) showed a 980% increase in the number of fires in the Pantanal through June 5, compared with the same period of last year. The figures have raised alarms as the region heads into the riskiest season for wildfires, which usually starts in July and peaks in August and September.

Agents of ICMBio work to extinguish a fire in the Pantanal, the world’s largest wetland, in Porto Jofre, Mato Grosso state, Brazil. Joedson Alves/Agencia Brasil/Handout via REUTERS 

2. Carbon removal needs to quadruple to meet climate goals, researchers say

Governments need to plant more trees and deploy technologies that will quadruple the amount of carbon dioxide removed each year from the atmosphere in order to meet global climate goals, a team of researchers said in a report published.

3. West African nations call for firms to be able to offset carbon

A group of 10 West African countries has weighed into a debate over whether companies around the world should be allowed to use carbon offsets to cut emissions, arguing they are critical to attracting financing for climate and conservation efforts. Click here for the full Reuters article.

4. Swiss upper house of parliament slams European climate ruling

Switzerland’s upper house of parliament slammed a recent ruling by a top European court that pressed the country to do more to combat global warming, arguing that Swiss authorities were already doing enough to address the threat.

5. Power-hungry data centers spur US talks with Big Tech, energy chief Granholm says

President Joe Biden’s administration is asking big technology companies to invest in new climate-friendly power generation to cover their surging demand, U.S. Energy Secretary Jennifer Granholm told Reuters.

The talks come as a surprising surge in electricity demand has been driven by the adoption of technologies like generative artificial intelligence that require power-hungry data centers.

For several rural communities in Nepal, cliff-side honey hunting is a tradition handed down for generations and an additional source of income besides farming. But villagers are worried because bee numbers and hives have been declining. Click here for the video or click here for the full Reuters special report. 

Comment: Coal use, imports and coal-fired emissions have all climbed to record highs in Vietnam this year despite ongoing efforts to roll out clean generation capacity across the country, writes Reuters Global Energy Transition Columnist Gavin Maguire. 

The continuing growth in coal dependence in Vietnam highlights the difficulty of dislodging coal from the power systems of fast-growing countries that rely on cheap and abundant energy sources to generate economic competitiveness.

Click here for the full comment piece.

30%

Leading investors said the deal to protect 30% of the planet’s lands and inland waters, marine and coastal areas by 2030 was a crucial undertaking as the oceans are the largest ecosystem, covering 71% of the planet, containing 1-2 million species and providing economic value of $2.5 trillion a year. Click here for the full Reuters story.

Today’s Sustainable Switch Climate Focus was edited by Christina Fincher.

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