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| 1 minute read

The Global Push for Energy Transition

The significant increase in global investment for the low-carbon energy transition, as highlighted by the BloombergNEF report, has profound implications for the future of the investment landscape. The total investment of $1.1 trillion in 2022 demonstrates a growing recognition of the urgency to shift towards sustainable energy solutions. This surge indicates a shift in investor sentiment, with a greater focus on environmentally friendly and socially responsible investments.

The dominance of renewable energy and the exponential growth of investment in electrified transport signal a transformative shift in the energy sector. This trend is likely to attract more capital and investment in the coming years, as governments, businesses, and individuals increasingly prioritize decarbonization efforts and the development of clean technologies. As a result, investors can expect an evolving investment landscape that offers new opportunities and challenges.

The substantial increase in investment for the low-carbon energy transition reflects a shifting investment landscape that prioritizes sustainability. This trend is likely to continue, offering new investment opportunities and requiring investors to stay informed about emerging technologies, market dynamics, and policy developments. By aligning investment strategies with the growing demand for clean energy and sustainable solutions, investors can position themselves for long-term success in the evolving investment landscape.

Renewable energy, which includes wind, solar, biofuels and other renewables, remained the largest sector in investment terms, achieving a new record of $495 billion committed in 2022, up 17% from the year prior. However, electrified transport, which includes spending on electric vehicles and associated infrastructure, came close to overtaking renewables, with $466 billion spent in 2022 – an impressive 54% increase year-on-year.

Tags

energy, energy transition, private markets, investment, financial services, infrastructure, real assets

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