Global investment in energy transition reached $2,1 trillion in 2024, an increase of 11% from the previous year and a record never seen before in history, according to report released by BloombergNEF this Thursday (30).
According to the company, this entire amount was driven by investments in electrified transport (US$757 billion), renewable energy (US$728 billion) and electricity grids (US$390 billion), which reached new highs last year.
These three segments have dominated the market because they have more established business models than other emerging technologies, such as green hydrogen, carbon capture and storage, and nuclear power.
Among the countries around the world, the market that ed for the largest volume of investments in energy transition was China, with US$818 billion and an increase of 20% compared to 2023.
Of the large markets included in the report, India and Canada also contributed to overall global growth, increasing their contributions by 13% and 19%, respectively.
In contrast, some locations that helped drive the growth of the energy transition in 2023 ended up, curiously, showing different results in 2024.
Investment stagnated, for example, in the United States (reaching US$338 billion) and fell in both the European Union and the United Kingdom, totaling US$381 billion and US$65,3 billion, respectively.
China's total investment alone last year was greater than the combined investment in these three regions of the globe.
Decarbonization goals
BNEF also reports that global investment in energy transition would need an average of $5,6 trillion each year from 2025 to 2030 to achieve the goals agreed in the Paris Agreement.
This discovery is based on another study from BloombergNEF, which details a global pathway to carbon neutrality and implies that current investment levels are just 37% of what is needed to get on track.
“There is still much more to be done, especially in emerging areas such as industrial decarbonization, hydrogen and carbon capture, to achieve global carbon neutrality goals. A true partnership between the public and private sectors is the only way to unlock the potential of these technologies,” said Albert Cheung, deputy CEO of BloombergNEF.
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