You don’t have to pay much attention to know that the level of activity in all things associated with reducing carbon emissions is high. Bloomberg put the total global investment for 2023 at $1.8 trillion.
As in most cases when it comes to clean energy-related areas, China led in investments with an estimated $675.9 billion. That was over a third of the total global investment and over twice as much as the next nearest country – the United States – which invested $303.1 billion. Germany ($95.4 billion), the UK ($73.9 billion), and France ($66.6 billion) rounded out the top five. The rest of the top 10 were Brazil, Spain, Japan, India, and Italy.
There weren’t any real surprises regarding where that investment capital went. Renewable energy got the lion’s share, followed by electrified transportation. China and the U.S. invested the most into their power grids, but at least in the U.S., it isn’t nearly enough. Electrified heat hit the radar in the U.S. Germany, France, and Japan. That was one area that China lagged.
Although the world investment almost $2 trillion, it fell well short of what Bloomberg’s believes is needed to achieve the Paris Agreement net zero targets. Bloomberg estimates $4.84 trillion a year is needed between 2024 and 2030. In the following decade the figure rises to $6.5 trillion annually, topping out at $6.5 trillion annually from 2041 – 2050.
The level of investment remains a key topic at forums such as COP. I personally have no illusions that countries will meet their financial commitments. Politically, that will always be a challenge. However, I would focus on ensuring what monies are allocated are done so wisely. To date, I wouldn’t say that’s the case. However, politically, that should be an easier problem to solve.
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