Summary
- Global investment in the low-carbon energy transition reached a record $2.1 trillion in 2024
- Key drivers of growth included electrified transport, renewable energy, and power grid enhancements
- Mainland China led global investment with $818 billion, while the US saw stagnant levels
- Proven technologies like renewables, energy storage, and EVs dominated investments
- Future outlook emphasizes the need for increased collaboration to reach global net-zero targets by 2050
Article
In 2024, global investment in the low-carbon energy transition reached a record $2.1 trillion, marking an 11% increase from the previous year according to BloombergNEF’s report. The growth was primarily driven by advancements in electrified transport, renewable energy, and power grid enhancements. Electrified transport was the leading sector with $757 billion in investments, followed by renewable energy with $728 billion, and power grid investments totaling $390 billion.
Mainland China led the global investment landscape with $818 billion, experiencing a 20% increase from the previous year. The United States saw stagnant investment levels at $338 billion, while the European Union and the United Kingdom experienced declines. Despite the challenging investment landscape, China’s total investment surpassed the combined investments of the US, EU, and UK, showcasing its dominance in the low-carbon energy transition field.
Proven and commercially scalable technologies such as renewables, energy storage, EVs, and power grids dominated the investment landscape, attracting $1.93 trillion and growing by 14.7%. However, emerging technologies like electrified heat, hydrogen, carbon capture and storage (CCS), and clean industry saw a 23% year-on-year decline in investments. The challenges hindering investment in these sectors include affordability, technological maturity, and commercial scalability.
Despite the record-breaking investment levels in 2024, current funding only represents 37% of the annual $5.6 trillion required from 2025 to 2030 to align with global net-zero targets by 2050. BNEF emphasizes the need for enhanced collaboration between public and private sectors to de-risk and scale emerging technologies, ensuring they contribute meaningfully to emission reductions by the end of the decade. Albert Cheung, Deputy CEO of BNEF, highlighted the necessity for partnership between private and public sectors to unlock the potential of emerging technologies.
The report highlights the importance of industrial decarbonization, hydrogen, carbon capture, and other emerging areas to reach global net-zero goals. The true potential of these technologies can only be unlocked through partnership between the public and private sectors. The report emphasizes the need for increased investment in emerging technologies to accelerate the low-carbon energy transition and ensure a sustainable future.
In conclusion, while the record investment in 2024 is a significant milestone, there is still much more that needs to be done to achieve global net-zero targets by 2050. The report calls for collaboration, innovation, and increased investment in emerging technologies to drive the transition towards a sustainable and low-carbon future. The partnership between public and private sectors is crucial in unlocking the full potential of these technologies and accelerating the cleantech revolution.
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