The world spent a lot of money on fossil fuels last year - but it spent just as much trying to replace them.
According to a new analysis from the research firm BloombergNEF, global investments in renewable energy technologies surged to $1.1 trillion in 2022, roughly matching investments in coal, oil, and gas for the first time. It's also the first time global investment in the transition away from fossil fuels rose past $1 trillion, representing a 31 percent increase over 2021. Few doubt that next year, investment in clean energy will comfortably outstrip dirty fossil fuels this year.
In 2022, solar and wind accounted for about $495 billion of the total, followed by EVs and charging infrastructure at $466 billion. And, for the first time, electric vehicles accounted for 10% of global car sales.
Who spends the most on clean energy? China, by far. It accounted for about half of the world’s total clean energy investments last year. Europe, if counted as a single state, came a distant second at $180 billion, with the United States claiming third spot with $141 billion of investment. However, BloombergNEF noted that new climate legislation - such as President Joe Biden’s landmark climate spending bill - could drive a “rapid acceleration” in the next few years. Let's hope so.