top of page

EVs are Receiving Bulk of New Renewable Investments

Electrifying the transportation sector is the focus of renewable investing, according to BloombergNEF’s recent report, Energy Transition Investment Trends 2024, which tracks and analyzes investments in renewable energy and technologies at a global scale.

BloombergNEF is a research institution and a “leading provider of forward-thinking primary research and analysis on the trends driving the transition to a lower-carbon economy”.

Global investments in the energy transition are growing year over year. In 2023 alone, global investments in renewable energy and other low-carbon technologies grew 17 percent from the previous year, totaling $1.77 trillion

Yet current outlays are far below the level of investment necessary to meet climate goals, and would need to grow by 170 percent annually, according to Albert Cheung, deputy CEO of BloombergNEF. According to the report, to meet the BNEF Net Zero Scenario, which is a “Paris Agreement-aligned trajectory” for global energy transition by 2030, $4.8 trillion must be invested annually.

China leads the globe in total investments in the energy transition, primarily bolstering renewable energy and electrified transportation. In 2023, Chinese investments fell by 11 percent from 2022, to $676 billion. However, this number still represents 38 percent of the world’s investment. Collectively, investments by the European Union, United States, and United Kingdom are larger than China, at $718 billion.

Regardless of the country, the lion’s share of investments were made in two categories, renewable energy technologies and electrified transportation. About $634 billion in global investments in electric transportation were made in 2023, rising by 36 percent from 2022. According to BloombergNEF, the electrified transportation category includes electric vehicles and associated infrastructure like charging stations.

While less than China, total investments in the energy transition within the United States are also on the rise. Largely facilitated by the Inflation Reduction Act, low-carbon technologies received $303 billion in American investments. This represents a 22 percent growth from 2022.

While growing, though at arguably a much slower pace than what some believe necessary, investment portfolios are shifting to include low-carbon technologies at rates previously unseen. Domestic policy, like the Inflation Reduction Act, will continue to push renewable investments, as the policy and technology matures.

11 views0 comments


bottom of page