Annual global investment in the energy transition rose to $1.77 trillion in 2023, 50x what it was in 2004. But is it enough?
No, it’s not enough yet! We need to reach $4-5T per annum. And investment in fossil fuels needs to be reduced, not increased…
Here are some key points:
➡️ Investment in electrified transport has now overtaken investment in renewable energy to become the largest sector.
➡️ Is investment in renewable energy not growing as fast as you expected? That's because prices are falling. Solar deployment rates are growing far faster than this.
➡️ Investment data for grids was only included from 2020. Either way, we need this to grow faster!
➡️ The largest sector within "other" is clean industry. Energy storage looks set to overtake this next year. Investment in nuclear has been relatively flat and actually decreased slightly in 2023.
➡️ Investment in sectors that may not be so useful also increased: hydrogen tripled to over $10 billion and CCS nearly doubled to $11 billion.
This is from BNEF's Energy Transition Investment Trends 2024 report.
Fri, Feb 23