Energy Transition Investment Hits Half A Trillion For The First Time

Energy Transition Investment Hits Half A Trillion For The First Time

Despite the economic disruption caused by COVID-19, global spending on the transition to a low carbon economy hit a record $501.3 billion in 2020, up 9% on the previous year.

This is according to the latest figures from BloombergNEF (BNEF) in its just published Energy Transition Investment Trends report. BNEF's analysis shows that companies, governments and households invested $303.5 billion in new renewable energy capacity in 2020, up 2% on the year, helped by the biggest-ever build-out of solar projects and a $50 billion surge for offshore wind. They also spent $139 billion on electric vehicles and associated charging infrastructure, up 28% and a new record.

This year BNEF compiled what it calls a new, broad measure of ‘energy transition investment'. Previously focused on renewables, the report now includes investment figures for a wider scope of transition areas, including energy storage, electrified vehicles and heating, hydrogen, and carbon capture and storage. It also covers thematic highlights such as the rise of green finance, performance of clean energy stocks and investment by oil majors.

Overall spend on renewable energy was up 2% on 2019, helped by the biggest-ever build-out of solar projects and a $50 billion surge for offshore wind. Domestic installation of energy-efficient heat pumps