Global investment in the low-carbon energy transition is expected to reach $755 billion in 2021, up 27% from $595 billion in 2020
FREMONT, CA:According to Energy Transition Investment Trends 2022, a new analysis produced by research firm BloombergNEF, global investment in the low-carbon energy transition totalled USD755 billion in 2021, up 27 percent from USD595 billion in 2020 and just. End-user purchases of low-carbon energy equipment, such as small-scale solar systems, heat pumps, and zero-emission vehicles, are included in this number, as well as investment in projects such as renewables, storage, charging infrastructure, hydrogen generation, nuclear, recycling, and CCS.
Renewable energy, energy storage, electrified transport, electrified heat, nuclear, hydrogen, and sustainable materials have witnessed increased investment in the report. Only carbon capture and storage (CCS) saw a decrease in investment, despite the fact that many new projects were announced throughout the year.
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Energy Transition Investment Trends is BNEF's yearly report on how much money corporations, financial institutions, governments, and end-users are putting into the low-carbon energy transition. Renewable energy, which includes wind, solar, and other renewables, continues to be the most profitable sector in terms of investment, with USD366 billion committed in 2021, up 6.5 percent from the previous year. With USD273 billion invested, the second-largest industry was electrified transportation, which includes spending on electric vehicles and related infrastructure. In 2021, this industry increased at the greatest rate (77 percent), and it may overtake renewable energy in terms of dollar growth in 2022.
In all three regions included in the report: Asia Pacific (APAC), Europe, Middle East & Africa (EMEA), and the Americas, record amounts were invested. In 2021, APAC was both the largest region for investment, with $368 billion (almost half of the global total) and the fastest-growing region, with a growth rate of 38 percent. Energy transition investment in EMEA increased by 16 percent to $236 billion in 2021, while investment in the Americas increased by 21% to $150 billion.