Global investment in low-carbon energy to reach parity with fossil fuels for the first time in 2022

Investment in low-carbon energy is booming, according to a report released on Jan. 26 by research firm BloombergNEF (BNEF). Global investment in shifting from carbon-emitting energy sources to environmentally friendly alternatives will soar to $1.1 trillion in 2022.

For the first time, investment in cleaner energy is on par with investment in fossil fuels, the report concludes. Burning fossil fuels is a major contributor to climate change. Renewable energy, energy storage, electrified transport, electrified heat sources, carbon capture and storage (CCS), hydrogen and sustainable materials will all see record investment in 2022, according to the report. reached the level of

The renewable energy sector consists of technologies such as wind and solar power generation and biofuels. Investment in the renewable energy sector will reach $495 billion in 2022, up 17% from 2021, the report said.

The future of clean energy looks promising, but more investment is needed if the world is to reach net zero. Net-zero is an international goal to reduce CO2 emissions to net zero by 2050 in order to limit the global temperature rise to 1.5°C. Further increases in temperature could significantly increase the damage from drought, hunger, loss of wildlife and habitat, and increased poverty.

BNEF says the amount of money invested in low-carbon technologies is “severely inadequate” to combat climate change. Global investment will need to reach $4.55 trillion by 2030 to reach net zero, the report said.

“Investments in clean energy technologies are on the verge of overtaking fossil fuel investments, and this trend is irreversible,” said Albert Cheung, BNEF’s head of global analytics, in a report. “These investments will boost short-term job creation and help meet medium-term energy security goals. (Mr. Cheung)

The BNEF website says the agency has been producing reports and data on the future of energy for more than a decade.