Page 4 - AfrElec Week 03 2021

AfrElec COMMENTARY AfrElec

Green investment breaches

$500mn barrier in 2020

Green investment continued to rise in 2020, with offshore wind and EVs
showing the most dynamic growth, writes Richard Lockhart

GLOBAL INVESTMENT in the energy transmission rose increases in spending as costs fall. Technologies
by 9% to a record $501.3bn in 2020, the first time such as electric heat, CCS and hydrogen are only
WHAT: that annual spending has breached the $500mn attracting a fraction of the investment they will
Green investment rises barrier. need in the 2020s to help bring emissions under
9% to $501.3bn in 2020 Figures from BloombergNEF (BNEF) control. We need to be talking about trillions per
showed that governments and households year if we are to meet climate goals.”
WHY: invested $303.5bn in new renewable energy
The world invested capacity in 2020, up 2% on the year. Regional breakdown
unprecedented amounts Spending on electric vehicles (EVs) and In terms of geography, Europe accounted for the
in low-carbon assets last associated charging infrastructure rose by 28% biggest slice of global investment at $166.2bn (up
year, from renewables to to $139bn, also a new record. 67%), with China at $134.8bn (down 12%) and
cleaner transport, energy Other areas of energy transition investment the US at $85.3bn (down 11%).
storage to electric heat also showed strength. Domestic installation of Europe’s impressive performance was driven
energy-efficient heat pumps came to $50.8bn, up by a record year for EV sales, and the best year in
WHAT NEXT: 12%, while investment in stationary energy stor- renewable energy investment since 2012.
This growth occurred age technologies such as batteries was $3.6bn, Jon Moore, chief executive of BNEF, said:
during the pandemic, so level with 2019 despite falling unit prices. “The coronavirus [COVID-19] pandemic has
investment is well-placed Global investment in carbon capture and held back progress on some projects, but overall
to grow once restrictions storage (CCS) tripled to $3bn, and that in hydro- investment in wind and solar has been robust
subside and countries put gen was $1.5bn, down 20% but the second-high- and electric vehicle sales jumped more than
in place green stimulus est annual number to date (see Figure 1). expected. Policy ambition is clearly rising as
programmes Albert Cheung, head of analysis at BNEF, more countries and businesses commit to net-
said: “Our figures show that the world has zero targets, and green stimulus programmes are
reached half a trillion dollars a year in its invest- starting to make their presence felt. Some 54% of
ment to decarbonise the energy system. Clean 2016 emissions are now under some form of net-
power generation and electric transport are zero commitment, up from 34% at the start of
seeing heavy inflows, but need to see further last year. This should drive increasing investment

P4 www. NEWSBASE .com Week 03 21•January•2021