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Canary Media’s chart of the week translates crucial data about the clean energy transition into a visual format.
Nearly $2.1 trillion was invested in the global energy transition in 2024 — the highest-ever annual amount.
Last year’s total energy-transition investment was 11% higher than in 2023 and more than double what was spent in 2020, per BloombergNEF.
Most of this money is flowing to two energy-transition sectors: electrified transportation and clean energy.
More than $757 billion was invested in passenger and commercial EVs, electric two- and three-wheelers, and public EV-charging stations. That’s a 20% increase from 2023. Another $728 billion was spent on renewable energy projects ranging from wind to solar to hydropower, a record high but only about 8% more than in 2023. Energy-storage spending, meanwhile, surged 36% last year to nearly $54 billion.
The third-biggest category was power grids, which need to grow in every country to accommodate the rapid expansion of clean energy. Just over $390 billion was invested in 2024 on expanding and retooling grids across the world, up about 15% compared with the year prior.
While funding for these mature energy-transition technologies reached new heights in 2024, earlier-stage climate technologies had a rougher year. Spending on carbon capture and storage was less than half of what it was in 2023. Investment in hydrogen and clean-industry projects was also cut almost in half.
China alone accounted for nearly 40% of last year’s energy-transition investment, outpacing the U.S., EU, and U.K. combined. China also grew its spending faster than any other major country or region last year, while in the EU and the U.K., the sector attracted less money than in the prior year.
By a different measure, from the International Energy Agency, energy-transition investment is now far exceeding funding for fossil-fuel projects. That’s a good thing for the global bid to eliminate use of planet-warming fossil fuels. But even last year’s record-setting pace is not enough to decarbonize the planet. More is needed, the IEA says, especially in developing nations.
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