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Investment in clean energy needs to increase to $4.5 trillion a year by early 2030s, as metals projected supply falls short of demand — new IEA report

Demand for critical minerals — including, lithium, copper, nickel and cobalt — will x4 to meet global net-zero targets by 2030, according to the latest report by IEA.

Forecast supply from announced projects for critical minerals will provide between 65%-90% of demand to meet net-zero requirements for wind, solar, heat pumps, batteries, and electrolysers.

But, this is still not enough.

According to the IEA, the world is set to invest a record US$1.8 trillion in clean energy in 2023, but this will needs to increase to around US$4.5 trillion a year by the early 2030s.

Critical Minerals production supply netzero nickel copper lithium cobalt - The Oregon Group - Investment Insights
Anticipated supply and projected demand for selected minerals in the net zero scenario 2030 - The Oregon Group - Investment Insights

“One risk arises from the way that global supply is set to remain highly concentrated among
a small number of countries and companies. More diverse supply chains would increase
supply resilience”

— IEA, Net Zero Roadmap A Global Pathway to Keep the 1.5 °C Goal in Reach

Global investment in clean energy is set to outstrip investment in fossil energy by a factor of
1.8 to 1 in 2023. This ratio rises to 10 to 1 in 2030 in the NZE Scenario, when around
USD 2.5 trillion is invested in clean electricity and low-emissions fuels and around
USD 1.8 trillion in energy efficiency and end-uses, while investment in fossil fuel supply falls
to around USD 0.4 trillion (Figure 4.4).

The world is set to invest a record USD 1.8 trillion in clean energy in 2023: this needs to
climb to around USD 4.5 trillion a year by the early 2030s to be in line with our pathway.

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The Oregon Group

The Oregon Group is an investment research team founded by independent capital markets experts, Anthony Milewski and Justin Cochrane.

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