Global renewable investment reaches record-high $500b in 2022
Energy transition technologies investments also reached a record $1.3t.
The total investment in renewable energy globally posted a record-high $500b in 2022, but this is still 40% below the average of $1.3t needed annually between 2021 to 2030 to achieve limiting the temperature increase to 1.5 degrees Celcius.
In a report, the International Renewable Energy Agency and the Climate Policy Initiative said the investments are also not on track to reach the goals under the 2030 Agenda for Sustainable Development, noting that the investments in off-grid renewable energy were only at $500m, far from the $2.3b annual average during the period to ramp up energy access.
Investments are also concentrated in specific technologies such as solar photovoltaic which accounted for 43% of the total renewable investments in 2020, followed by onshore and offshore wind at 35%, ad 12%, respectively.
However, only 15% of the investments in 2020 went to around 70% of the world’s population which are mostly in developing and emerging markets.
In terms of investment in energy transition technologies including energy efficiency, it also reach a record high of $1.3t, which is 19% higher than in 2021 and 50% from before the pandemic.
“For the energy transition to have a positive impact, governments and development partners need to play a more active role in ensuring a more equitable flow of finance recognising the different endowments and starting conditions of countries,” the report read.
“More public funds need to flow to regions and countries that have a lot of untapped potentials but find it difficult to attract investment. These funds need to go into supporting energy transition infrastructure development, enabling policy frameworks as well as addressing persistent socio-economic gaps,” it added.