AGS NEWS – The International Energy Agency (IEA) revealed in its latest report that clean energy has made a significant economic impact, contributing $320 billion to the global economy in 2023, which represents 10% of the year’s global GDP growth.

According to IEA analysts, clean energy is increasingly becoming a driving force for economic growth worldwide.

The report, titled “Clean energy is boosting economic growth,” emphasizes the growing importance of clean energy in the global energy landscape.

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Clean electricity accounted for approximately 80% of new capacity additions to the world’s electricity system in 2023, with electric vehicles representing about one-fifth of all cars sold globally.

The report highlights a booming investment in clean energy manufacturing, propelled by both government policies and market demand.

It also notes that employment in clean energy jobs surpassed that of fossil fuels in 2021 and continues to rise.

IEA’s analysis delves into the economic contributions of clean energy in major economies such as the United States, the European Union, China, and India.

In the United States, clean energy played a significant role in driving a 2.5% GDP growth in 2023, with notable investments in clean energy manufacturing and electric vehicles.

Similarly, clean energy contributed to around one-fifth of China’s 5.2% GDP growth in 2023, with strong growth observed in clean power capacity and clean equipment sales.

However, challenges such as surplus production capacity in certain technologies may impact future growth.

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In the European Union, clean energy accounted for nearly one-third of GDP growth in 2023, despite overall weak economic growth.

India experienced the fastest GDP growth among large economies, with clean energy contributing slightly less than 5% to its growth, primarily driven by investments in new solar power capacity.