Investment on energy transition is currently too focused on few technologies and countries, the International Renewable Energy Agency (IRENA) said in its 2023 outlook.
In a new assessment of efforts to meet the key Paris accord target of limiting global warming to 1.5°C, the agency said the energy transition was currently "off-track."
It called for higher and more diversified investment both by states and private investors.
This recommendation may prove controversial among energy transition advocates, with environmental organizations generally asking governments to focus available funding on the few technologies currently considered more promising.
IRENA statistics help governments elaborate scenarios on funding needed for reaching global transition goals.
Investment in renewable energy reached $500 billion in 2022, IRENA said, adding that this was around one-third of the average investment needed each year to comply with the Paris accord.
In addition, most investments were in solar photovoltaic and wind power, with 95% channeled toward these technologies last year.
"Greater volumes of funding need to flow to other energy transition technologies such as biofuels, hydropower, and geothermal energy, as well as to sectors beyond power such as heating and transport," IRENA said.