BloombergNEF’s Energy Transition Investment Trends report has found that global investment in the low-carbon energy transition surged 17 per cent in 2023, reaching $1.77 trillion.
Electrified transport was found to be the largest sector for spending in the energy transition, growing 36 per cent in 2023 to $634 billion, including electric cars, buses, two- and three-wheelers and commercial vehicles, and associated infrastructure.
It overtook the renewable energy sector, which saw an 8 per cent increase to $623 billion.
Power grid investment was the third-largest contributor at $310 billion, it was shared.
Strong growth was also seen in emerging areas such as hydrogen (with investment tripling year on year), carbon capture and storage (which nearly doubled) and energy storage (up 76 per cent).
The report noted that while there has been an increase in investment, the current level of investment in clean energy technologies is not sufficient to set the world on track for net-zero by mid-century.
Energy transition investment would need to average $4.8 trillion per year from 2024 to 2030 to align with BNEF’s Net Zero Scenario, a Paris Agreement-aligned trajectory from the 2022 New Energy Outlook.
This is nearly three times the total investment observed in 2023, it said.
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