Investment in low-carbon technologies exceeds US$ 1 trillion, but it is still little

Global investment in the low-carbon energy transition totaled $1.1 trillion in 2022 – a new record and a huge acceleration from the year before – as the energy crisis and political action drove faster deployment of clean energy technologies. https://t.co/3Za0Z1IaXd
—BloombergNEF (@BloombergNEF) January 26, 2023

What the report says

The report Energy Transition Investment Trends (🇬🇧) is the annual study of BNEF about how much companies, financial institutions, governments and end users arepromewith the low-carbon energy transition.

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With the exception of nuclear energy, all segments analyzed – renewables, batteries, electrification of transport and heating systems, green hydrogen and sustainable building materials – registered records since the BNEF monitoring began in 2004.

Brazil could lead global production of green hydrogen, study shows

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The Brazilian potential in the production of green hydrogen is in the study “Green Hydrogen Opportunity in Brazil” (“Green hydrogen opportunity in Brazil”), released this Friday (20) by the German consultancy Roland Berger. According to the research, if the world fulfills the commitments established in the Paris Agreement – with the objective of reducing greenhouse gas emissions and minimizing the impacts of global warming – the majority of the energy consumed on the planet will come from green hydrogen. This demand will put pressure on a global market estimated at more than US$1 trillion.

The largest volume was concentrated in the production chains of clean sources, such as solar, wind and green fuels. US$495 billion were invested in 2022, an increase of 22% compared to the previous year.

The biggest proportional leap, however, was in the transformation of the transport sector. Record sales of electric vehicles and the construction of new charging point infrastructure represented a growth of 54%, generating US$466 billion, calculates BNEF.

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On the rise! Sales of electric cars reach record in the EU

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Electric vehicles represented 12,1% of new car sales in the European Union (EU) in 2022, a record level in the bloc, which from 2035 will ban the sale of new gasoline and diesel cars. The Italian market was the only one that recorded a drop in sales, of 26,9%. 🚘

A China It was, by far, the country that invested the most in energy transition technologies, with US$546 billion. The country is the world's largest emitter of greenhouse gases, and two-thirds of its electricity is generated via burning coal.

It's still not enough

Despite the scale, the amount still needs to be at least tripled so that the world enters the path of net zero in 2050, according to the survey.

But what does it mean to have a net zero policy?

It means zeroing net emissions of greenhouse gases, mainly carbon dioxide (CO2), into the atmosphere, and any release of polluting gases must be compensated by the reduction of an equivalent amount of CO2.

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Accelerating the replacement of polluting sources is a necessary condition to limit the planet's warming to 1,5°.

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For the first time, wind and solar energy surpassed gas in the EU in 2022