Global clean energy investment has accelerated significantly

The world energy pattern has undergone important changes, and new trends in energy investment are taking shape
.
Global energy investment will grow by 8% this year to $2.
4 trillion, with growth mainly coming from the clean energy sector.
The development of renewable energy is at the core of future energy investment, and electrification is a key factor in increasing the end-use of clean energy
.
Major economies have increased financial support for clean energy, and financial innovation has also boosted new energy investment and financing
.

The world energy pattern has undergone important changes, and new trends in energy investment are taking shape
.
With increasing investment in clean energy, a path to cleaner, safer energy is on the way
.

Relevant research shows that to solve the two major crises in the world today, namely the energy crisis and the climate crisis, the lasting solution is to accelerate the clean energy transition and invest heavily
.
In fact, this investment is accelerating, with the prospect of achieving global net-zero carbon emissions climate goals by 2050
.
In the five years after the Paris Agreement was signed in 2015, clean energy investment grew at an average annual rate of only 2%, but since 2020, the growth rate has accelerated to 12%
.
According to the latest report of the International Energy Agency (IEA), global energy investment will increase by 8% this year, reaching 2.
4 trillion US dollars, mainly from the clean energy sector
.
Among them, the fastest growing is renewable energy and grid, and related energy efficiency technologies
.

The strong growth in investment is due to increased financial support for clean energy in major economies
.
Investments are focused on renewable energy, grids and storage, and some emerging technologies are growing rapidly, especially batteries, low-emission hydrogen, carbon capture utilization and storage
.
Investment in battery storage is expected to more than double this year to nearly $20 billion
.
Investments in areas such as solar photovoltaics and electric vehicles have also increased markedly
.

Currently, investment in clean energy is well above pre-pandemic levels, while investment in oil, gas, coal and low-carbon fuel supplies is below pre-2019 levels
.
Despite rising fuel prices and even forecasts that the world's oil and gas producers' net income could double to $4 trillion this year, all parties are cautious about investing in the traditional fossil sector
.
This is because energy investment has a long cycle and is slow to bear fruit, especially due to multiple supply chain pressures, a tight market for professional labor and services, and the impact of rising energy prices on basic building materials such as steel and cement, making it difficult to secure investment returns
.
High inflation, which has not been seen for many years, has also curbed the investment impulse of companies
.

The IEA report predicts that the total global energy consumption expenditure will exceed 10 trillion US dollars for the first time this year.
The broad market prospects and ultra-high energy prices have attracted some countries to increase investment in fossil fuels, mainly to ensure the security of supply sources and Diversification, after all, the world energy market is likely to be in short supply for many years
.
Most traditional oil and gas companies have been slower to diversify their investments and are largely driven by European companies
.
Overall, clean energy investment accounts for about 5% of the total capital expenditure of global oil and gas companies, a significant increase from 1% in 2019
.

From the perspective of the overall investment distribution of clean energy, it is expected that the investment will exceed 1.
4 trillion US dollars this year, accounting for about three-quarters of the growth in global energy investment
.
Statistics show that in 2021, China's clean energy investment will reach $380 billion, topping the list; followed by the European Union with $260 billion and the United States with $215 billion
.
Many countries and regions have included the development of clean energy as an important part of their policies to stimulate economic recovery
.

Clean energy technology requires a large amount of key minerals, and related investment and competition are becoming increasingly fierce
.
Data show that in 2021, the combined operating profits of 18 major mining companies in energy transition mineral development have more than doubled
.
The overall investment in non-ferrous metal production in the world increased by 20% last year, of which the investment in lithium mines increased by 50%, hitting a record high
.
Mineral investment is still expected to grow strongly in 2022
.
Global spending on key mineral exploration rose 30 percent last year, with the U.
S.
, Canada and Latin American countries leading the way
.
In particular, the United States has just announced the establishment of a Mineral Security Partnership (MSP) with some countries.
Its strategic intention is to strengthen the security of key mineral supply chains and thus maintain its dominant and monopoly position
.

The development of renewable energy is the core of future energy investment
.
Clean technologies such as wind and solar photovoltaics remain the most economical power generation options in many countries
.
Solar PV accounted for nearly half of new investment in renewable energy
.
The focus of wind power is shifting to offshore, where more than 20 gigawatts of wind power was commissioned last year, with an investment of around $40 billion
.
China still tops the list, accounting for more than half of new wind energy additions
.

Electrification is a key factor in increasing clean energy end uses
.
Investment in the power industry is the closest to a sustainable development trajectory, with annual investment in the power industry now reaching $900 billion a year, and if it continues to grow at the same rate as the past three years in the future, it will reach $1.
2 trillion by 2030
.
Meanwhile, global EV sales more than doubled year-on-year in 2021, and continued strong growth this year
.
A decade ago in 2012, just 120,000 electric vehicles were sold globally, and last year more than that was sold every week
.
This year's orders are too large to meet demand
.
More than 80% of electric vehicle sales are concentrated in China and Europe; more than 90% of the world's public electric vehicle charging infrastructure is built in China, Europe and the United States
.
Sales of electric two- and three-wheelers are booming, and investments in electrification of passenger cars and commercial vehicles are also favored
.
China plans to reach more than 30 gigawatts of new energy storage capacity by 2025, and the scale of grid projects planned or under construction in the United States exceeds 20 gigawatts, with huge potential in the future
.

In terms of clean hydrogen, the cumulative global capital investment is expected to total approximately US$600 billion by 2030, of which 60% will be used for infrastructure development outside the EU
.
The development path of hydrogen energy in Europe and the United States has basically taken shape, and public financial support for energy innovation has continued to increase
.
U.
S.
and European startups have raised record funding, especially for energy storage, hydrogen and renewable energy technologies
.

Investment is also inseparable from financial innovation
.
At present, environmental, social and corporate governance (ESG) investment is surging, and the scale of investment and financing in the field of renewable energy is expanding rapidly
.
In 2021, sustainable bond issuance exceeded $1.
7 trillion, with the vast majority of green bonds aimed at financing renewable energy, low-carbon buildings and green transportation
.
It is expected that under the global vision of pursuing sustainable green energy this year, major economies will increase policy guidance, which will attract more private investment to join the development and application of new energy
.