Governments had given about USD 17 trillion in refunds, grants, loans, and tax cuts, By October 2021. As a result, energy efficiency has gathered USD 144 billion.
Governments worldwide had given about USD 17 trillion in refunds, grants, loans, and tax cuts by October 2021 (IMF, 2021a). These initiatives aim to aid firms, governments, and consumers affected by the Covid-19 outbreak while aiding the global economy. In addition, Renewables got USD 45 billion in government clean energy investment, which comprised electricity, heat, and fuels (biofuels, advanced biofuels, and biogas).
Renewable heat technologies may advantage from energy efficiency investments based on national limits after other sectors come from public transit (USD 94 billion), low-emission cars, and charging infrastructure (USD 79 billion). On the other hand, EVs and alternative-fuel automobiles have obtained the greatest funding thus far.
Utility-scale and distributed solar PV will receive above half of the low-carbon energy expenditures (USD 24 billion). In addition, money from established markets such as China, Korea, and the EU will help attract investment. Concerning public financing, the nuclear energy zone comes at about USD 9 billion.
Hydropower, geothermal, and biofuels obtained just USD 3.5 billion. This is correct even for hard-to-decarbonize sectors like aviation and heavy industries, where biogas and biofuels play a significant role. Governments seek to decarbonize the most challenging sectors. For example, the US spends USD30 billion on hydrogen, yet it's unclear whether the money will go towards renewable or non-renewable hydrogen sources.
In Europe & North America, the focus was on transportation and energy efficiency. Based on the region, renewables represented between 4 to 56 percent of overall clean energy investment. After Europe, the Asia Pacific, and North America got public renewable energy financing in October 2021. Concentrating on strong renewable goals has increased clean energy investment in China and Korea.
Budgeted government renewable energy expenditures might draw an extra USD 380 billion in private investment. However, investment policies and procedures will heavily influence the private sector's involvement. Because of the potential expansion in solar PV, an extra 380 GW of renewable energy projects may be developed in the next few years. It is evaluated that between 2021 and 2023, the IEA will add USD 800 billion in renewables. This enhanced public and private investment.