Global spending on clean energy reached a record-breaking number of $1.8 trillion last year. However, it is still not enough to reach net-zero emissions, as reported by BloombergNEF on Tuesday.
The total spending saw a 17% increase last year as reported by BloombergNEF on Tuesday.
The funds cover various aspects, such as installing renewable energy, purchasing electric vehicles, creating hydrogen production systems, and deploying other technologies.
When factoring in investments in developing clean-energy supply chains and $900 billion in financing, the total funding for 2023 amounted to approximately $2.8 trillion.
“The opportunity is large and spending is accelerating, but we need to do so much more,” Albert Cheung, BNEF’s deputy chief executive officer, said.
“We’re in the steep part of the curve, and we’ll see rapid growth” for spending every year, he said. “But whether we get on track for net zero, that’s a difficult ask.”
China spent the most last year with $676 billion, showing a modest 6% increase from 2022.
In contrast, investments in the US, the UK, and Europe grew significantly by at least 22%, reaching a combined total of $718 billion.
This growth was fueled in part by incentives in the Inflation Reduction Act, the primary US climate law, which is starting to make a notable impact. The UK experienced robust electric vehicle sales, and there was a high demand for renewables across Europe, contributing to the overall increase.
