The Worldwide Vitality Company simply revealed its annual report on world funding in power, the place it tallies up all that money. The world noticed about $2.8 trillion of investments in power in 2022, with about $1.7 trillion of that going into clear power. 

That’s the most important single-year funding in clear power ever, and the place it’s all going is fairly attention-grabbing. I’ve some excellent news, some dangerous information, and a few stunning tidbits to share. So seize some popcorn and let’s dive into the info. 

Fossil fuels are faltering

Let’s begin with what I take into account to be excellent news: there’s some huge cash going into clear power—together with renewables, nuclear, and issues that assist reduce emissions, like EVs and warmth pumps. And never solely is it some huge cash, but it surely’s greater than the quantity going towards fossil fuels. In 2022, for each greenback spent on fossil fuels, $1.70 went to wash power. Simply 5 years in the past, it was useless even. 

Clear power’s rising dominance is very clear in terms of solar energy. In 2023, for the primary time, funding in photo voltaic power is predicted to beat out funding in oil manufacturing. It’s a stark distinction from what the image appeared like a decade in the past, when oil spending outpaced photo voltaic spending by almost six to 1.  

Whereas we’re on oil and fuel, I believe it’s value stating one actually attention-grabbing level: whereas there’s some huge cash flowing to wash power, it doesn’t make up an enormous share of spending by fossil-fuel corporations. 

See these tiny darkish slivers in 2021 and 2022? That’s the share of oil and fuel corporations’ spending that went towards clear power. Spending on oil infrastructure has fallen (which is what’s allowed photo voltaic to catch up), however corporations are making up for it by paying out dividends, shopping for again inventory, and paying again debt slightly than placing extra into low-emissions tech. 

Any funding and a spotlight going to renewables and improvements that would assist reduce emissions is nice, and I do assume oil and fuel corporations can play a task in boosting new applied sciences, particularly these the place they’ve experience (I’m taking a look at you, geothermal!). However I believe it’s necessary to maintain that spending in context—oil and fuel corporations are placing much less cash into renewables than advert campaigns would have you ever assume. 

Convey it on

Inside clear power, the overwhelming majority of spending goes into renewables like wind and photo voltaic, grid upgrades, and efforts to enhance power effectivity.