[ad_1]
Global investment in the low-carbon energy transition jumped 17% in 2023 to reach $1.77 trillion, according to a report published by research firm BloombergNEF (BNEF).
The report Energy Transition Investment Trends 2024 reveals that the main drivers of investment growth are renewable energy, electric vehicles, hydrogen and carbon capture.
The largest spending sector in the energy transition is electrified transportation, which will grow by 36% to $634 billion in 2023, overtaking the renewable energy sector ($623 billion). This is an area that has been strengthened by the construction of wind, solar and geothermal power plants and the promotion of biofuel production. plant.
The third largest contributor was investment in the electricity grid at $310 billion, followed by hydrogen (investment tripled year-on-year), carbon capture and storage (almost double), and energy storage (up 76%). “Strong growth” continued in emerging fields such as
“Last year set new records for global renewable energy investment,” said Meredith Annex, BNEF’s head of clean power and co-author of the report.
©BloombergNEF
“Strong growth in the US and Europe led the global rally, even as China, the world’s largest renewable energy market, slumped, posting an 11% decline.”
Despite narrowing its lead, China remains the largest investor, with $676 billion invested in 2023, representing 38% of the global total.
Investment in the EU, US and UK combined was $718 billion, with investment in the US increasing 22% year-on-year to $303 billion due to the impact of the Inflation Control Act (IRA).
However, despite strong signs of growth, current levels of investment in clean energy technologies are insufficient to reach net zero by 2050, the report found.
“Our report shows how rapidly clean energy opportunities are expanding and how far off track we still are,” said Albert Chan, deputy CEO of BNEF. I commented. “Energy transition investment spending increased by 17% last year and will need to increase by more than 170% to stay on track to net zero in the coming years.”
Energy transition investments in line with BNEF’s net-zero scenario would require an average of $4.8 trillion per year from 2024 to 2030, nearly three times the total investment in 2023.
For the UK to follow this scenario, it will need to secure almost double the $72 billion spent on energy transition technologies in 2023 each year from 2024 to 2030.
The report also revealed a record $135 billion in investment in the global clean energy supply chain in 2023, targeting equipment factories for energy technology and production of battery metals (up from 46 billion in 2020). billions of dollars).
This trend is expected to continue, with some predicting it to reach $259 billion by 2025. By 2023, the wind power sector will be the only sector that will require increased supply chain investment along a net-zero trajectory.
“Investment in a rich supply chain should continue to keep equipment prices in check in most sectors, which is good news for the energy transition,” said Antoine Vagnour-Jones, Head of Trade and Supply Chain at BNEF. Ta. “However, the ensuing oversupply heralds an era in which the profits of solar cell and battery manufacturers will be squeezed.”
Two other types of financing, including climate technology equity financing (reduced from $127 billion in 2022 to $84 billion in 2023 due to rising interest rates) and energy transition bond issuance worth $824 billion in 2023. Funding was tracked.
[ad_2]
Source link
