Energy Transition Investment Reaches US$1.8tn

Global low-carbon energy transition investments increased by 17% and represented US$1.8 trillion last year, according to industry research provider BloombergNEF. This marked a new record level of annual investment in the transition. Electrified transport overtook the renewable energy sector to become the largest sector of spending, having grown 36% in 2023 to reach US$634 billion. The renewable energy sector grew 8% to US$623 billion, while investment in power grids was the third-largest energy transition contributor with a total US$310 billion. In addition, hydrogen investment tripled, carbon capture investment doubled, and investment in energy storage rose 76%. China was the single largest investing country in the energy transition last year with US$676 billion, which represented 38% of the global total. The EU, US and UK collectively injected US$718 billion. The UK’s contribution surged 84%, driven by strong electric vehicle sales and renewable power investment, while the EU’s grew 35% and the US’ 22%. Despite the overall progress, current levels of clean technology investments represent less than half of the US$4.8 trillion per year needed between 2024 and 2030 for the world to reach net zero by 2050.

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