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BloombergNEF says in a new report that global clean energy investment reached $2.1 trillion in 2024, more than doubling 2020 levels. The United States led energy transition debt issuance, driving up investment 5% year on year to $206 billion. A new report on energy transition investments from BloombergNEF shows that global investment in clean energy technologies hit a record of $2.1 trillion in 2024. This represents 11% growth from 2023 totals and is more than double the total investment made in 2020. The largest sectors were electrified transport at $757 billion, renewable energy at $728 billion and power grids at $390 billion. These sectors all hit record levels of investment last year, with energy storage also reaching a record $54 billion in investments. Seven other sectors included in BloombergNEF’s energy transition report – nuclear, carbon capture and storage, hydrogen, clean shipping, electrified heat and clean industry –represented only 7.4% of investments and declined 23% year over year in 2024. BloombergNEF’s report placed global investment in four buckets: global energy transition investment ($2.08 trillion), supply chain investment ($140 billion), climate-tech equity raising ($50.7 billion), and energy transition debt issuance ($1.01 trillion.) BloombergNEF said mainland China has “returned to the driving seat,” accounting for two-thirds of the global increase in 2024. Despite investment in the trillions, BloombergNEF estimated that the world is far behind its net-zero emissions goals. It said investment is running at just 37% of the levels required for the rest of this decade if the world is to get on track for net zero by 2050. Clean energy supply chains received $140 billion in investment. Supply chain or manufacturing investment dipped in 2024, which the report attributed to solar, battery, battery metals and electrolyzer manufacturing being in a state of overcapacity. Energy transition debt issuances reached $1 trillion in 2024, led by the United States, which grew its investments 5% year on year to $206 billion, followed by China at $169 billion. “Many sectors raise debt for the transition – clean energy firms only make up 5% of the total. Utilities are the largest fundraisers. Governments and financials follow as they subsidize, invest or lend to the value chain,” said BloombergNEF. The report also noted struggles in venture capital investment in climate and energy in 2024. In recent years, climate venture markets were more resilient to broader market struggles, but this reversed in 2024, and venture dollars deployed to climate fell 40% despite venture funding in the economy increasing. Capital raised via initial public offerings reached $6.2 billion in 2024, 85% less than the total in 2021. |
