Page 8 - NorthAmOil Week 05 2022

NorthAmOil COMMENTARY NorthAmOil

BNEF: global investment in energy

transition reaches $755bn in 2021

Global investment in the energy transition totalled a record $755bn in 2021, according

to a new report from BloombergNEF

GLOBAL GLOBAL investment in the energy transition Energy Transition Investment Trends is
totalled $755bn in 2021, a new record, accord- BNEF’s annual accounting of how much busi-
WHAT: ing to a new report from London-based research nesses, financial institutions, governments and
Global investment in the firm BloombergNEF (BNEF). end-users are committing to the low-carbon
energy transition totalled China was yet again the largest single coun- energy transition.
$755bn in 2021, with try for such transition investment, committing Renewable energy is again the largest sector
the US in second place $266bn in 2021. The US came in second place as in investment terms, achieving a new record
among countries by a single country, with $114bn. That’s although of $366bn committed in 2021, up 6.5% from
investment. EU member states as a bloc pledged more, at 2020.
$154bn. Electrified transport, which includes spend-
WHY: Germany, the United Kingdom and France ing on EVs and associated infrastructure, was
The energy transition rounded out the top five countries for energy the second-largest sector with $273bn invested.
continues to accelerate, transition investment in 2021. With EV sales surging, this sector grew at a
with some countries Asia-Pacific countries now hold four of the breakneck rate of 77% in 2021 and could over-
embracing it more top 10 places in terms of energy transition take renewable energy in dollar terms in 2022,
dramatically than others. investment levels, with India and South Korea predicted BNEF.
joining China and Japan, said BNEF. Together, clean power and electrification
WHAT NEXT: The news is important because of how fast (comprising renewables, nuclear, energy stor-
CCS recorded a dip in the energy transition is accelerating as the age, electrified transport and electrified heat)
investment and still world moves to clean energy – renewables such accounted for the vast majority of investment at
needs to be proved to be as wind and solar, nuclear, storage, sustainable $731bn. Hydrogen, CCS and sustainable mate-
commercially viable. materials, and electric vehicles – and away from rials made up the rest, totalling $24bn.
fossil fuels. “The global commodities crunch has created
Only carbon capture and storage (CCS) new challenges for the clean energy sector, rais-
recorded a dip in investment, though there were ing input costs for key technologies like solar
many new projects announced in the year. CCS modules, wind turbines and battery packs,” said
is not yet commercially viable. Albert Cheung, Head of Analysis at BNEF.

P8 www. NEWSBASE .com Week 05 03•February•2022