Investment in clean energy technologies reaches record £1.77 trillion in 2023

Investment in clean energy technologies reached a record £1.77 trillion in 2023, marking a 17% increase from the previous year, according to new data from BloombergNEF (BNEF).

The data reveals that the electrified transport sector received more investment than the renewable energy sector for the first time. Spending on electric cars, buses, two- and three-wheelers, and commercial vehicles soared to £634 billion, surpassing the £634 billion invested in solar, wind, and other renewable energy technologies. Power grids ranked third in the league table of clean energy sectors, with £310 billion invested in electricity transmission and connection infrastructure.

Despite these advancements, BNEF warns that investment levels are still insufficient. According to international agreements, the estimated £4.8 trillion per year between 2024 and 2030 is needed to limit temperature increases to 1.5°C. This highlights the urgent need for policymakers to take determined action and ramp up investment in clean energy technologies to achieve global climate goals.

Why does it matter?

This surge in investment demonstrates the growing interest and commitment towards transitioning to a cleaner and more sustainable energy system. We also see a shift in focus towards the electrification of transportation as a key strategy in reducing carbon emissions and combating climate change. While the surge in investment in clean energy technologies is a positive development, it falls short of what is required to address climate change effectively. The report’s findings underscore the importance of continued investment in clean energy supply chains and the urgent need to address the equity funding gap to drive the advancement of clean technologies and achieve a sustainable energy transition.