Conflicts in Ukraine and the Middle East is causing a spike in fossil fuel investment, a report by KPMG has revealed.

Its research found that three in four investors it surveyed globally are making new investments in polluting fossil fuel firms.

Conflict in Ukraine and the Middle East “have led to a renewed focus on energy security, highlighting the importance of oil and gas and leading to an increase in fossil fuel investments”, says KPMG's report.

KPMG found continuing support for fossil fuel firms among investors despite their backing of clean energy technologies and projects “accelerating swiftly”. More than seven in ten investors say investment in energy transition is increasing rapidly.

But many investors still “see fossil fuels playing a steadily declining yet vitally important role in the energy mix over the next two decades”.

They believe that continued investment in natural gas is needed “to meet energy demand as the transition proceeds” to green energy.

Investment in fossil fuel energy is expected to be more than $1.1tr this year.

Just under two thirds of investors say they have directly invested in energy efficiency technologies, and more than half have invested in renewable and low-carbon energy, energy storage and grid infrastructure.

“This range highlights the breadth of opportunities for investors,” in green energy, says KPMG.

However, it found that regulatory or policy risks represents the biggest barrier to green energy investment.

“These risks are difficult for investors to manage, and the resulting uncertainty can delay or prevent capital flows from reaching energy transition initiatives,” stats KPMG in its report.

“Stable, transparent and consistent regulatory environments can enhance long-term investment opportunities in clean energy and infrastructure.”

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