Investments in wind power and photovoltaic energy increase by 17% and reach $1.8 trillion in 2023

Inputs break records, but are still insufficient for the world to achieve the goals stipulated in the Paris Agreement
Global investments in renewable energy increased by 17% and totaled around $1.8 trillion in 2023, according to a BloombergNEF report.

This figure represents a new record level of annual investment in the energy transition, even in a year marked by geopolitical upheaval, high interest rates and cost inflation.

The value includes expenses with photovoltaic and wind energy, purchase of electric vehicles, construction of hydrogen production systems, in addition to the implementation of other technologies.

However, the study points out that the figures presented are not enough for the world to achieve carbon neutrality by the middle of this century, as foreseen by the Paris Agreement.

The report estimates that for this to happen, global spending on clean energy sources would need to reach, on average, $4.8 trillion per year between 2024 and 2030. This is almost three times the total investment seen in 2023.

“Our report shows how quickly clean energy opportunities are growing, and yet how far we still are (from the global decarbonization goal),” said Albert Cheung, deputy director of BloombergNEF.

“Expenditure on investments in the energy transition grew by 17% last year, but they need to grow more than 170% if we want to achieve carbon neutrality,” highlighted the executive.

The report also concludes that investments in the global clean energy supply chain, including equipment factories and battery metal production, are expected to continue to grow and drive down equipment prices in most sectors.

“This is good news for the energy transition,” said Antoine Vagneur-Jones, head of trade and supply chains at BloombergNEF.

Also according to the survey, the country that registered the greatest contribution to renewable energies last year was China, with around 676 million dollars in investments, equivalent to 38% of the global total.

Although still dominant, China’s lead has shrunk compared to other nations, such as the European Union, the United States and the United Kingdom – which together surpassed China with $718 million invested in 2023.