Clean tech investment hits record highs despite market volatility – reports
NEW YORK, UNITED STATES — Despite recent stock market volatility and supply chain disruptions, investments in clean technology surged to new heights, according to two reports released last week.
In the United States, investments in clean tech hit a record $67 billion in the fourth quarter of last year, a 40% jump from the same period in 2022, the Rhodium Group and MIT revealed.
The boom was driven by electric vehicles, with U.S. EV sales soaring 52% to 1.4 million vehicles in 2023. Emerging climate technologies like clean hydrogen, sustainable aviation fuel, and tools to capture and manage carbon also saw investments increase tenfold.
Globally, the International Energy Agency stated that clean energy investments reached $1.8 trillion last year, continuing nearly 10% annual growth since 2019. A fifth of all vehicles sold worldwide were electric, buoyed by massive investments across the EV supply chain.
“China again led the way, with one-in-three cars sold being electric, while in the European Union it was one-in-four,” the IEA report said.
We just released 2️⃣ new important reports — showing the major growth of clean energy limited the rise of global carbon dioxide emissions in 2023.
Explore the analysis 👇
CO2 Emissions in 2023: https://t.co/EIfXge1HPq
Clean Energy Market Monitor: https://t.co/K368lPGThh pic.twitter.com/zktrRFAkGZ— International Energy Agency (@IEA) March 1, 2024
The robust investment trends align with emissions reduction targets outlined in the U.S. Inflation Reduction Act to cut greenhouse gases 40% by 2030. However, Rhodium warned that consumer spending on home solar and batteries has stagnated recently. Additionally, the wind sector saw investments plunge 40% due to ongoing supply chain woes.
While the clean tech expansion remains concentrated in wealthier nations, the reports underscore the complexity of transitioning from fossil fuels.
“To my mind, the recent focus on headwinds amid promising data are important reminders of a key reality of the energy transition: shifting the economy away from fossil fuels is going to be complicated, with ups and downs,” said Justin Worland, senior TIME journalist covering climate change.
“While it’s important to understand what’s happening with particular companies and technologies, it’s also important to keep an eye on the broader trend.”
Meanwhile, The International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO) reported significant growth in the renewable energy sector with 13.7 million employed individuals globally in 2022.
A landmark study by workforce solutions provider ManpowerGroup and global energy company Cepsa also predicts that over 1.7 million new green jobs will emerge across Europe by 2040.
