For the first time, the world invested as much money into replacing fossil fuels as it spent on producing oil, gas and coal, according to an analysis from BloombergNEF.
Global investments in the clean energy transition hit $1.1 trillion in 2022, roughly equal to the amount invested in fossil fuel production, the research firm said in its “Energy Transition Investment Trends 2023” report. Never before has the amount spent on switching to renewable power, electric cars and new energy sources like hydrogen topped $1 trillion.
While the amount represents a 31% jump from 2021, it’s still just a fraction of what’s needed to slash greenhouse gas emissions and fight global warming. BNEF estimates annual investments in the transition must triple for the rest of this decade to give the world a shot at reaching net-zero emissions by 2050.
Solar and wind power accounted for the biggest chunk of 2022 investments, reaching $495 billion, a 17% increase from the previous year. But electric vehicles came in close behind, with $466 billion, and the amount invested in them worldwide is growing far faster, at 54%. Nearly half of all global energy transition investments — $546 billion — were in China, while the US came in second at $141 billion. (Had BNEF counted the European Union as a single entity, it would have ranked second, with $180 billion.)
