Global investment in energy transition amounted to more than 755 billion U.S. dollars, the equivalent of 675 billion euro, in 2021 – a new record. This is according to the new report Energy Transition Investment Trends 2022 by analysts at Bloomberg New Energy Finance (BNEF).
BNEF noted growth in almost every area they consider as part of the energy transition, including renewables, energy storage, electrified transportation, electrified heat and hydrogen, as well as nuclear. Only in carbon capture and storage (CCS) a decline in investment was recorded, although many new projects were announced during the year.
The report shows the volume corporations, financial institutions, governments and end users invested in energy transition. Renewable energy remained the largest investment sector. It reached a new record level of $366 billion, the equivalent of 327 billion euro, in 2021 (up 6.5% on the year).
The second largest sector, with investments of US$273 billion (€244 billion), is electrified transport. BNEF considered spending on both electric vehicles and related infrastructure. With electric vehicle sales on the rise, this sector grew at a rate of 77% in 2021. It could overtake renewables in 2022. Hydrogen, CCS and all other sectors came to an investment volume of $24 billion (€21 billion) last year.