If climate-related goals are to be met, more money will be required, even though global energy investment is on course to jump by more than 8% in 2022.
According to the latest version of the IEA's World Energy Investment report, clean energy investment is set to more than double this year and account for almost three-quarters of the growth in overall energy investment.
The agency pointed out that there was a lot of work to be done.
In the five years after the Paris Agreement was signed, the growth rate in clean energy investment was 2%.
The rate has increased since 2020. It's an important step in the right direction, but it's not enough to hit international climate goals.
The executive director of the IEA spoke about the current situation.
He said that we can tackle both the global energy crisis and the climate crisis at the same time.
The only lasting solution is a massive surge of investment.
This kind of investment is rising, but we need a much faster increase to ease the pressure on consumers from high fossil fuel prices, make our energy systems more secure, and get the world on track to reach our climate goals.
The increase in clean energy spending is unevenly distributed, with advanced economies and China accounting for the majority, according to a statement accompanying the IEA's report.
Some markets are seeing high prices and concerns about energy security are prompting higher investment in fossil fuel supplies.
$110 billion was invested in thecoal supply chain in the year 2021, according to the IEA. The increase was 10% compared to 2020. The industry is expected to follow the same path this year.
It said that global coal supply investment is expected to grow by another 10% in 2022. China and India are expected to make up the bulk of global coal investment in the next five years.
The United States Energy Information Administration has a list of emissions from the burning of coal. Carbon dioxide, sulfur dioxide, particulates and nitrogen oxides are included.
Coal is the dirtiest, most polluting way of producing energy, according to the environmental group.
The IEA report comes at a time of rising inflation, a sustained surge in oil and gas prices, and tensions between Russia and the Ukranian government.
Businesses, governments and consumers are facing a huge challenge due to those factors. The same goes for the energy sector.
The IEA said that almost half of the additional capital investment is likely to be eaten up by higher costs.
After a period of decline, the costs of solar panels and wind turbine have risen by between 10% and 20%.
The total energy bill for consumers is set to surpass $10 trillion for the first time, according to the IEA.
Some countries are stepping up fossil fuel investment because of high prices.
A number of major economies have formulated plans to reduce their dependence on Russian oil in the last few months, which has led to some challenging situations.
Reduced flows of Russian gas have prompted some governments to consider a return to coal.
Coal-fired plants can be used to make up for a cut in Russian gas supplies.
The report was contributed to by CNBC.
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