Global Clean Energy Spending Hits $1.8T, Falls Short of Net-Zero

• Global clean-energy spending hits record high of $1.8 trillion, but more investment is needed to achieve net-zero emissions. China leads, but US, UK, and Europe show promising growth in renewable energy and electric vehicles.

Global spending on the clean-energy transition reached a record high of $1.8 trillion last year, according to a report from BloombergNEF. This includes investments in renewable energy, electric vehicles, hydrogen production systems, and other technologies. However, despite the surge in spending, it is still not enough to achieve net-zero emissions by mid-century. BNEF estimates that the world needs to invest more than twice as much in clean technology to reach this goal. The report warns that governments need to do more, with investments needing to surge by 170% for the world to stay on track for net zero.

China remains the largest market for clean-energy spending, with $676 billion invested last year. However, this only represents a 6% increase compared to the previous year. In contrast, investments in the US, the UK, and Europe grew by at least 22%, reaching a combined total of $718 billion. Electric vehicles saw the largest investments, with spending on EVs globally climbing 36% to $634 billion. Renewable energy investments increased by 8% to $623 billion, while investments in power grids reached $310 billion. Some nascent technologies, such as hydrogen, also saw significant growth.

Is global spending on clean energy enough to achieve net-zero emissions by mid-century?

• Despite global spending on clean energy reaching a record high of $1.8 trillion last year, it is still not enough to achieve net-zero emissions by mid-century.
• BloombergNEF estimates that the world needs to invest more than twice as much in clean technology to reach the net-zero emissions goal.
• Governments need to do more, with investments needing to surge by 170% for the world to stay on track for net zero.
• China remains the largest market for clean-energy spending, with $676 billion invested last year, but this only represents a 6% increase compared to the previous year.
• Investments in the US, the UK, and Europe grew by at least 22%, reaching a combined total of $718 billion.
• Electric vehicles saw the largest investments, with spending on EVs globally climbing 36% to $634 billion.
• Renewable energy investments increased by 8% to $623 billion.
• Investments in power grids reached $310 billion.
• Nascent technologies, such as hydrogen, also saw significant growth in investments.