Page 9 - NorthAmOil Week 05 2022
P. 9
NorthAmOil COMMENTARY NorthAmOil
Only carbon capture
and storage recorded a
dip in investment.
“Against this backdrop, a 27% increase in current growth rates, the electrified transport
energy transition investment in 2021 is an sector has the best chance of getting on track for
encouraging sign that investors, governments such investment levels; other sectors look less
and businesses are more committed than ever likely to get on track.
to the low-carbon transition, and see it as part Matthias Kimmel, head of energy economics
of the solution for the current turmoil in energy at BNEF, said: “The world is rapidly running out
markets.” of carbon budget to meet the goals of the Paris
Record amounts were invested in all three Agreement. The energy transition is well under-
regions covered in the report: Asia Pacific way, and moving faster than ever, but govern-
(APAC), Europe, Middle East & Africa (EMEA), ments will need to mobilise much more finance
and the Americas (AMER). APAC was both the in the next few years if we are to get on track for
largest region for investment at $368bn – nearly net zero by 2050.”
half the global total – and the region with the The report also finds that climate-tech corpo-
highest growth at 38% in 2021. Energy transi- rate finance reached $165bn in 2021. This cate- Investment needs
tion investment in EMEA grew by 16% in 2021, gory of investment, not included in the $755bn,
reaching $236bn, while the Americas – which describes new equity financing raised by com- to increase
are lagging – saw investment grow by 21% to panies in the climate-tech space, either from dramatically to
$150bn. public markets or private investors.
This capital will be used in the coming years reach the goal of
What next? to scale up these companies’ operations and fur-
BNEF’s 2021 New Energy Outlook (NEO) has ther develop their technologies. Two-thirds of 1.75 degrees.
previously mapped out three alternative scenar- this funding came from public markets, includ-
ios – dubbed green, red and grey-- for reaching ing SPAC reverse mergers, and the vast majority
global net zero by 2050, in line with 1.75 degrees went to companies focused on the energy and
of global warming, a more lx goal than the 1.5 transport sectors.
degrees of the Paris Agreement. “There has never been more capital available
Investment needs to increase dramatically to to companies tackling the hardest aspects of the
reach the goal of 1.75 degrees. climate challenge,” said Claire Curry, head of
The new report, when compared with NEO, technology and innovation at BNEF.
shows that investment levels need to triple “It is true that we have solutions ready to
approximately, such that they average $2.1 tril- deploy today, but there is still the need for
lion per year between 2022-2025, in order to get continued innovation. All forms of corpo-
on track for any of those three scenarios. rate finance will play an important role in
They then need to double again, to an aver- helping develop and scale climate-tech in the
age of $4.2 trillion between 2026 and 2030. At coming decade.”
Week 05 03•February•2022 www. NEWSBASE .com P9
