Published by Global Banking & Finance Review®
Posted on January 30, 2025
2 min readLast updated: January 26, 2026
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Global investment in low-carbon energy exceeded $2 trillion in 2023, driven by renewable energy and electrified transport. China led with $818 billion.
LONDON (Reuters) - Global investment in low-carbon energy transition exceeded $2 trillion for the first time last year, a report by BloombergNEF showed on Thursday.
WHY IT'S IMPORTANT
Countries around the world are investing in and developing cleaner sources of power and infrastructure to meet climate targets under the Paris Agreement but many experts say the pace is not fast enough.
Global energy transition investment needs to average $5.6 trillion each year from 2025 to 2030 to meet a net zero emissions target by mid-century. Current investment levels are only 37% of what is required to get on track, BloombergNEF's energy annual investment trends report said.
BY THE NUMBERS
Investment in the low-carbon energy transition grew by 11% last year to a record $2.1 trillion, driven by renewable energy, power grids and electrified transport and energy storage investment, according to the report.
However, the pace of growth was slower than in the previous three years when investment grew by 24-29% a year.
The largest market for investment was mainland China, which accounted for $818 billion of investment, up 20% from 2023.
CONTEXT
One of U.S. President Donald Trump's first acts on returning to office last week was to quit the Paris Agreement, which will slow U.S. climate funding internationally and increase the chance of global warming escalating.
KEY QUOTE
"There is still much more that needs to be done, especially in emerging areas like industrial decarbonisation, hydrogen and carbon capture, in order to reach global net-zero goals." said Albert Cheung, deputy chief executive of BloombergNEF.
(Reporting by Nina Chestney; Editing by Christina Fincher)
Global investment in low-carbon energy transition exceeded $2 trillion for the first time last year, reaching a record $2.1 trillion.
Mainland China was the largest market, accounting for $818 billion of investment, which was a 20% increase from 2023.
Global energy transition investment needs to average $5.6 trillion each year from 2025 to 2030 to meet net-zero emissions targets by mid-century.
Investment in the low-carbon energy transition grew by 11% last year, which was slower than the previous three years when growth rates were between 24-29%.
Experts highlight the need for more investment in emerging areas like industrial decarbonisation, hydrogen, and carbon capture to achieve global net-zero goals.
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