Page 4 - AfrElec Week 05 2022

AfrElec COMMENTARY AfrElec

BNEF: global investment in energy

transition reached $755bn

GLOBAL GLOBAL investment in the energy transition Energy Transition Investment Trends is
totalled $755bn in 2021, a new record, according BNEF’s annual accounting of how much busi-
to a new report by London-based research firm nesses, financial institutions, governments and
BloombergNEF (BNEF). end-users are committing to the low-carbon
China was yet again the largest single coun- energy transition.
try for such transition investment, committing Renewable energy is again the largest sector
$266bn in 2021. The United States came in sec- in investment terms, achieving a new record of
ond place as a single country, with $114bn. That’s $366bn committed in 2021, up 6.5% from 2020.
although EU member states as a bloc pledged Electrified transport, which includes spend-
more, at $154bn. ing on EVs and associated infrastructure, was
Germany, the United Kingdom and France the second-largest sector with $273bn invested.
rounded out the top five countries for energy With EV sales surging, this sector grew at a
transition investment in 2021. breakneck rate of 77% in 2021 and could over-
Asia-Pacific countries now hold four of take renewable energy in dollar terms in 2022,
the top 10 places in terms of energy transition predicted BNEF.
investment levels, with India and South Korea Together, clean power and electrification
joining China and Japan, said BNEF. (comprising renewables, nuclear, energy stor-
The news is important because of how much age, electrified transport and electrified heat)
the energy transition is sky-rocketing, as the accounted for the vast majority of investment at
world moves to clean energy – renewables such $731bn. Hydrogen, CCS and sustainable materi-
as wind and solar, nuclear, storage, sustainable als made up the rest, totalling $24bn.
materials, and electric vehicles (EVs) – and away “The global commodities crunch has created
from fossil fuels. new challenges for the clean energy sector, rais-
Only carbon capture and storage (CCS) ing input costs for key technologies like solar
recorded a dip in investment, though there were modules, wind turbines and battery packs,” said
many new projects announced in the year. CCS Albert Cheung, head of analysis at BNEF.
is not yet commercially viable. “Against this backdrop, a 27% increase in

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