Global investment in the low carbon energy transition reached $1.8 trillion (£1.4tn) in 2023, marking a 17% increase from the previous year.
That’s according to BloombergNEF’s Energy Transition Investment Trends 2024 report, which suggests electrified transport emerged as the leading driver, surpassing renewable energy and comprising over a third of the total investment.
The report indicates that electrified transport attracted $634 billion (£499bn), experiencing a 36% year-on-year increase, while renewable energy saw a more modest rise of 8% to $623 billion (£490bn).
Growth also occurred in emerging sectors, with hydrogen investment tripling, carbon capture and storage nearly doubling and energy storage experiencing a 76% surge.
Investment in the global clean energy supply chain, including equipment factories and battery metals production, set a new record at $135 billion (£106bn), with expectations of further growth.
Climate tech companies faced a 34% year-on-year decline, raising $84 billion (£66.2bn) in private and public equity.
China maintained its position as the largest market, contributing $676 billion (£532bn), 38% of the global total, while the US and the EU showed robust growth, investing $303 billion (£238bn) and $340 billion (£267bn), respectively.
