According to BNEF, global investments in the clean energy transition hit $1.1 trillion in 2022, roughly equal to the amount invested in fossil fuel production. This is the first time that annual investment in sustainable technologies surpassed the $1 trillion mark. Although the amount represents a 31% jump from 2021, it’s still just a fraction of the requirement to meet net-zero emissions by 2050
In terms of technology, the majority of the investments in clean energy were driven by solar and wind, reaching $495 billion, a 17% increase from 2021. Electric vehicles come close second with $466 billion of investment, marking a stiff 54% increase over the previous year
In terms of region, nearly half of all global energy transition investments – $546 billion were in China, followed by European Union and US with $180 billion & $141 billion of investment, respectively
In 2022, US renewable energy growth slackened due to rising costs and project delays driven by supply chain disruption, trade policy uncertainty, inflation, increasing interest rates, and interconnection delays. But growth will likely accelerate powered by robust demand and the record-breaking raft of clean energy incentives in the Inflation Reduction Act (IRA)
EU saw a remarkable acceleration in the energy transition, partly because of the energy crisis, with record renewable energy installations and electric vehicle sales. The outlook for low-carbon transition continues to look extremely bright. The EU has reached an agreement on the FiT for 55, RePowerEU and carbon border adjustment mechanism. All these together are setting the scene for faster decarbonization across the bloc