In fact, investment in clean tech is still going strong.

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Reading some of the recent headlines about clean technology in the United States, it would be easy to think that this sector is in rapid decline. ESG investors (those who prioritize environmental, social, and governance issues) are withdrawing funds from climate-smart strategies. The offshore wind sector is in crisis. And then there’s the news of EV rollbacks by both major automakers and policymakers in Washington, D.C.

But behind this narrative, the data paint a more optimistic picture. Clean technology investment in the U.S. reached a record $67 billion in the fourth quarter of last year, according to a new report released on February 29 by Rhodium Group and the Massachusetts Institute of Technology. This represents a 40% increase compared to the same period in 2022. In total, clean technology accounted for his 5% of total private investment in structures, equipment and consumer durables in the fourth quarter. Global clean energy investment totaled $1.8 trillion last year, growing rapidly at an annual rate of 10% since 2019, according to a report released March 1 by the International Energy Agency (IEA). .

One area of ​​particular interest is electric vehicles. EVs have been subjected to a series of particularly difficult headlines in recent months. There have been reports on everything from reports that the Biden administration will rescind the clean car rule proposed by the Biden administration to that Hertz is discontinuing some of its EV vehicles. Most importantly, some car companies say demand for cars is slowing. All of these data points should be relevant to his EV proponents, but they need to be considered in the context of a more promising macro picture. According to a new report from Rhodium, 1.4 million EVs were sold in the U.S. last year, marking a 52% growth compared to 2022. And according to the IEA: One in five cars sold worldwide last year was an EV. Investment in the EV supply chain is also growing rapidly, demonstrating that investors remain confident in the long-term future of zero-emission vehicles.

Emerging climate technologies such as clean hydrogen, sustainable aviation fuels and tools to capture and manage carbon are also bright spots, Rhodium’s report said. Between the fourth quarter of 2023 and the same period last year, his investments in these technologies increased tenfold.

Nevertheless, the report also highlighted areas of further difficulty. Investments in wind power fell by nearly 40% in the fourth quarter compared to 2022. This reflects, at least in part, persistent supply chain issues. Additionally, investment in home energy solutions such as heat pumps, solar power and batteries, an important signal of consumer commitment to the green transition, has been flat to declining.

There are also critical climate questions about whether these investments will be sufficient to meet U.S. and global climate goals. A separate report released last week suggested that investments in EVs and the power sector are in line with the US Inflation Control Act’s goal of cutting emissions by 40% from 2005 levels by 2030. Now we need to follow other technologies. And the IEA points out that globally, clean energy expansion is highly concentrated in developed countries and China. Emerging countries also desperately need cleaner technologies.

So is there a signal amidst the noise? In my view, the recent focus on headwinds amidst promising data is an important reminder of an important reality of the energy transition. That said, transitioning the economy away from fossil fuels will be complex, with ups and downs. While it’s important to understand what’s happening with specific companies and technologies, it’s also important to pay attention to broader trends. And things continue to move forward here too.