Global Landscape Of Renewable Energy Finance

Global investments in energy transition technologies reached USD 1.3 trillion in 2022, a record high. Yet, the current pace of investment is not sufficient to put the world on track towards meeting climate or socio-economic development goals.

In 2022, global investments in energy transition technologies – renewable energy, energy efficiency, electrified transport and heat, energy storage, hydrogen and carbon capture and
storage (CCS) – reached USD 1.3 trillion despite the prevailing macroeconomic, geopolitical and supply chain challenges.

Global investments were up 19% from 2021 levels, and almost 70% from 2019, before the COVID-19 pandemic. This trend demonstrates a growing recognition of the climate crisis and energy security risks associated with over-reliance on fossil fuels.

Yet, the current pace of investment is not sufficient; annual investments need to at least quadruple. Keeping the world on track to achieving the energy transition in line with the 1.5°C Scenario laid out in IRENA’s World energy transitions outlook 2023 will require annual investments of more than USD 5 trillion on average between 2023 and 2030 (IRENA, 2023a).

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