According to a report released on Tuesday, expenditure on clean energy is about to surpass fossil fuel spending for the first time ever. Last year, spending on clean energy exceeded $1 trillion.
Despite the achievement, according to research organization BloombergNEF, spending on energy transition technology must instantly increase in order to achieve the goal of net-zero emissions by the year 2050 to battle climate change.
According to the research, investments in industries including renewable energy, nuclear power, zero-emission automobiles, and recycling programs totaled $1.1 trillion last year, matching expenditures on fossil fuels.
The investment total is now being expressed in trillions for the first time, an increase of 31% from the prior year.
The increase was driven by the energy crisis that followed Russia’s invasion of Ukraine, the report said.
“Investment in clean energy technologies is on the brink of overtaking fossil fuel investments and won’t look back,” said Albert Cheung, head of global analysis at Bloomberg NEF.
China — the world’s biggest polluter — was by far the largest investor in energy transition, with the United States a distant second.
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Nearly half of the total global investment was in China, particularly in the steel recycling, renewable energy, and electric vehicle sectors.
Germany has retained its place in third position, largely due to a sizable EV market.
But a drop in offshore wind deals saw investment in Britain fall by nearly a fifth, the report found.
Globally, renewable energy was the biggest sector for investment at $495 billion, followed by electrified transport projects.
With the exception of nuclear power, the researchers said all other sectors saw record levels of investment.
The growth in energy transition technology also comes as many countries see an increase in fossil fuel investment in a bid to shore up energy security.
The war in Ukraine caused disruption to the global power supply as Russia, a major producer of fossil fuels, cut gas supplies to European Union countries and was hit by sweeping sanctions over the invasion.
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