Energy Transition Investment Trends In 2023 by BloombergNEF

This report is BloombergNEF’s annual accounting of global investment in the low-carbon energy transition. It includes a wide scope of sectors, covering renewables, energy storage, electrified vehicles and heating, hydrogen, nuclear, sustainable materials and carbon capture. It also covers VC/PE and public markets investment in climate-tech companies,

For the first time this year, we also track power grid investment, and supply chain & manufacturing investment for clean energy technologies.

– In 2022, global energy transition investment totaled $1.1 trillion, up 31% on the prior year and the first time the figure has been measured in trillions. This figure includes investment in projects, such as renewables, storage, charging infrastructure, hydrogen production, nuclear, recycling and CCS – as well as end-user purchases of low-carbon energy tech,
such as small-scale solar, heat pumps and zero-emission vehicles.

– While renewable energy remained the largest sector at $495 billion (up 17% year-on-year), electrified transport is growing much faster and hit $466 billion (up 54%).

– China is by far the largest contributor, accounting for just under half of global energy transition investment. The US is a distant second.

– Energy transition investment is on the brink of overtaking fossil fuel investment for the first time. Both are estimated at $1.1 trillion in 2022. But transition investment needs to average more than 3x this level, for the rest of this decade, to get on track for BNEF’s Net Zero Scenario.

– Climate-tech companies raised a total of $119 billion from global public equity markets and private investors in 2022 – down 29% from the year before during a challenging year in the markets.

– Investment in clean energy manufacturing facilities grew to $79 billion in 2022. No significant acceleration is needed to get on track for net zero.

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