EXPERTS warned today that more than £28.6 trillion needed to be invested in energy markets and infrastructure by 2035 to meet global needs.

The International Energy Agency (IEA) said that, as current technologies went offline and demand rose in emerging nations, the expansion of a global gas market would not reduce prices significantly due to high transport and infrastructure costs.

The Paris-based body predicted that £1.2tn per year will need to be invested by 2035, a rise of £239 billion from 2013, while annual spending on energy efficiency will have to increase to £328bn.

“This amounts to a cumulative global investment bill of more than $48trn (£28.6trn), consisting of around $40trn (£23.9trn) in energy supply,” it calculated.

Most of the £23.9trn is needed to offset declining production from existing oil and gas fields and to replace power plants approaching the end of their productive life.

The main components of energy supply investment would be £13.8trn in fossil fuel extraction, transport and oil refining, almost £6trn in power generation and a further £4.2trn in transmission and distribution, the agency added.

It warned policymakers that they faced conflicting pressures.

Demands for stronger action on climate change could cause a backlash against subsidies on renewables and calls for lower energy prices could cconflict with public opposition to cheaper extraction techniques such as fracking.

Europe was singled out as a particular concern, requiring £1.2trn in investment by 2035, while India will need £895bn over the same period.