Energy Transition Spending Hits a Cool Trill
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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.
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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.