Global investment in the energy transition totalled $755bn in 2021, setting a new record, according to BloombergNEF (BNEF).
BNEF’s Energy Transition Investment Trends 2022 found investment rose in almost every sector covered in the report, including renewable energy, energy storage, electrified transport, electrified heat, nuclear, hydrogen and sustainable materials.
Renewable energy, which includes wind, solar and other renewables, remains the largest sector in investment terms, achieving a new record of $366bn committed in 2021, up 6.5% from the year prior.
Electrified transport, which includes spending on electric vehicles and associated infrastructure, was the second-largest sector with $273bn invested.
With electric vehicle sales surging, this sector grew at a “breakneck” rate of 77% in 2021, and could overtake renewable energy in dollar terms in 2022.
Only carbon capture and storage (CCS) recorded a dip in investment, though there were many new projects announced in the year.