Energy Transition Spending Hits a Cool Trill
To borrow an overused term from the situation from 2020 that shall not be named, there was an unprecedented amount of money spent on the global energy transition last year: $1.1 trillion, to be exact.
What happened: A report released by Bloomberg last week highlighted that in 2022, annual global energy transition investment — how much the world spent on renewables, electrified transport, carbon removal, etc. — crossed the trillion-dollar mark for the first time ever.
- Accounting for just shy of half the total global energy transition spend was [suspense] China, with the United States as the distant runner-up.
It’s also the first time that annual energy transition spending was on par with annual investment in fossil fuels. Read that again.
When one trillion just isn’t enough
It’s estimated that to hit the Paris Agreement targets of net-zero emissions by 2050, global energy transition spending will need to increase to an average annual spend of $4.5 trillion until 2030, and $6.9 trillion per year the following decade.
It’s a tall order, but experts are optimistic considering transition investment grew 31 percent year-over-year despite an energy market gone topsy-turvy from Russia’s invasion of Ukraine.
Zoom out: The Bloomberg report concluded that energy transition spending will soon eclipse fossil fuel investment and when it does, the world “won’t look back” on the road to net-zero.
Does anyone know a good solar stock? Asking for a friend.