Global investment in low-carbon energy jumped by almost a third last year and now stands at record levels, according to new research.
Analysis by Bloomberg NEF (BNEF), Energy Investment Transition Trends 2023, reveals that global spending on energy transition infrastructure and technology reached US$1.1trn in 2022. This is the first time the trillion-dollar barrier has been breached, and a 31% rise on the previous year’s amount.
Investment in wind, solar, energy storage and efficiency, hydrogen, electrified heat and carbon capture all hit record levels, with only nuclear power showing just a slight rise. A total of US$466bn was invested in the electrified transport sector – a surge of 54% and second only to total spending on renewables, which attracted US$495bn.
China accounted for around half of all low-carbon energy investment, said BNEF, with the EU second, at US$180bn. The US accounted for US$141bn.
“Rather than slowing down, energy transition investment has surged to a new record as countries and businesses continue to execute transition plans,” said BNEF head of global analysis Albert Cheung. “Investment in clean energy technologies is on the brink of overtaking fossil fuel investments, and it won’t look back.”