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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

3. Solar power overtakes coal in EU energy mix: Report

? Solar power surpassed coal as a source of electricity in the European Union (EU) for the first time
in 2024, according to a report released by climate think tank Ember.

? Solar energy has become the EU’s fastest-growing power source, contributing 11% to its supply.
Overall, strong growth in solar and wind has boosted the share of renewables to 47%, up from
34% in 2019.

? Only 10% of the bloc's power was generated with coal. The report highlighted a continued decline
in fossil fuel dependency, with gas generation falling for the fifth consecutive year and overall
fossil-fueled power dropping to a historic low of 29%.

? The European Green Deal, enacted in 2019, has been pivotal in accelerating the EU's transition to
clean energy. Soaring gas prices following Russia's invasion of Ukraine also forced Europe to turn
to renewable energy, seeking cheaper, cleaner alternatives.

? Falling gas demand in the EU significantly reduced reliance on Russian gas. With the increasing
use of new wind and solar capacity, the region has avoided fossil fuel imports worth almost $61
billion (€58.6 billion) since 2019.

4. FDI dipped by 8% in 2024, presenting a challenge to progress on Sustainable Development Goals:
UNCTAD

? Global Foreign Direct Investments (FDI) dipped by eight per cent in 2024. This dip in FDI endangers
the progress on the Sustainable Development Goals (SDGs) that rely on international project
finance, according to the latest Global Investment Trends Monitor.

? This assessment was released by United Nations Trade and Development (UNCTAD) on January
20, 2025.

? International project finance, a key driver for infrastructure and energy investments, faced
challenges, with the number of deals falling by 26 per cent and their value declining by nearly a
third.

? International project finance deals in developed economies witnessed a dip by 29 per cent,
continuing the downward trend observed in 2023. This decline was widespread across all
industries and countries with very few exceptions.

? In developing economies, international project finance dropped by 23 per cent in number and 33
per cent in value, mainly due to fewer deal announcements in Asia. Several large emerging
markets, including Brazil, China, Indonesia, and Mexico experienced declines in project numbers
significantly larger than the global average.

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