Global 2024 Energy Transition Investments Estimated at over $2T

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In 2024, global investments in the energy transition reached an unprecedented $2.1 trillion, according to BloombergNEF (BNEF). This marks the first time the annual report has recorded investments exceeding $2 trillion, although the 11% growth rate is a decline from the previous three years, which saw increases between 24% and 29%. China led the investment landscape with $818 billion, followed by the United States at $338 billion. The majority of spending was concentrated in electrified transport ($757 billion), renewable energy ($728 billion), and power grids ($390 billion, while investments in emerging clean technologies like carbon capture and hydrogen lagged behind, accounting for only 7.4% of total investments.

Despite the record investment levels, BNEF emphasizes that these figures fall short of what is necessary to achieve net-zero emissions by 2050. Albert Cheung, BNEF's deputy CEO, highlighted the need for increased collaboration between public and private sectors to unlock the potential of emerging technologies. The report also examined other funding types, revealing a decline in supply chain investments and climate-tech equity finance, while debt issuance saw a modest increase. Overall, the findings underscore the ongoing challenges and opportunities within the energy transition landscape.