In transition

Despite a tough year in the markets, investment spending on the energy transition jumped 31% year on year in 2022, to USD 1.1 trillion according to Bloomberg New Energy Finance (BNEF). Notably, that strong progress came before initiatives like the US Inflation Reduction Act came into effect. Renewable energy, including wind and solar, remained the leading sector within the transition, rising 17% year on year to USD 495 billion. Coming up fast, rising 54% to USD 466 billion, were investments in electrified transport including passenger and commercial vehicles as well as charging infrastructure. These investments come at a time when the world is not only seeking to address climate change, but also to bolster energy independence and security.