Global ‘energy transition investment’ topped $500 billion dollars for the first time in 2020, according to a new analysis by BloombergNEF (BNEF). The measure, which takes into account investment by businesses, governments and households, shows that green funding shrugged off the Covid-19 pandemic to increase by 9% year-on-year.
Investment in additional renewable capacity reached $303.5 billion, an increase of 2% versus 2020 figures. However, the biggest driver behind the increase came from investment in electric vehicles, which increased by 28% to reach $139 billion.
In geographical terms, Europe now leads the way in energy transition investment, accounting for $166.2 billion (+67%), having overtaken China at $134.8 billion (-12%). Europe’s impressive performance was underpinned by a record high year in electric vehicles sales.
BNEF’s Head of Analysis, Albert Cheung, stated: “Clean power generation and electric transport are seeing heavy inflows, but need to see further increases in spending as costs fall. Technologies such as electric heat, CCS and hydrogen are only attracting a fraction of the investment they will need in the 2020s to help bring emissions under control.”
BNEF also published their predictions for 2021, which included: significant increases in solar and wind installations; a 60% increase in electric vehicles sales; a record year for heat pump installations; and global LNG sales growth of 6%.
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