Renewable energy projects are expected to receive a total of $7 trillion in investment by 2040 around the world, according to the International Energy Agency's report published Tuesday.
Between 2015 and 2040, renewable energy investments will constitute 60 percent of all energy related financial aid globally, the agency said.
During the same period, subsidies are forecast to increase by $60 billion to reach $172 billion.
The share of renewable energy sources within global electricity generation will reach 34 percent, overtaking coal as the largest source of electricity generation by the early 2030s. Coal's share is due to drop from its current 41 percent to 30 percent by 2040.
Global electricity generation from renewables will rise from 5,105 terawatt-hours to 13,400 terawatt-hours, the report shows.
Additions to renewable energy’s installed capacity are expected to total 3,600 gigawatts up to 2040.
China will become the leader in the renewable energy market in 2040 as the country is expected to install one of every four megawatts in capacity.
The EU, India and the U.S. will follow China as the leaders in the renewable energy sector.
"Renewables-based generation reaches 50 percent in the EU by 2040, around 30 percent in China and Japan, and above 25 percent in the U.S. and India," the report's projections say.
By Zeynep Beyza Kilic