REM: Global clean energy investment ‘not nearly sufficient’ for net zero by 2050
Global investment in the low-carbon energy transition surged 17% in 2023 but a BloombergNEF report finds this is not nearly sufficient to be on track for net zero by 2050.
The latest report reveals that 2023 marked a historic high in annual investment, showcasing the resilience of the clean energy transition amidst a backdrop of geopolitical instability, rising interest rates and cost inflation.
Regarding spending within the energy transition, the report identifies electrified vehicles (EVs) as the leading sector, experiencing a remarkable 36% growth in 2023, with a total expenditure of $634bn.
This encompassed investments in EVs such as cars, buses, two- and three-wheelers, as well as the associated infrastructure.
Surprisingly, electrified transport has now surpassed the renewable energy sector in terms of spending, which saw an 8% increase to $623bn. This category encompasses investments in renewable energy production facilities such as wind, solar, geothermal power plants and biofuels production facilities, among others.
Furthermore, power grid investments ranked third, amounting to $310bn. The importance of power grids as an essential facilitator of the energy transition cannot be understated, and their investment is poised to increase in the years ahead, said BNEF.