Record renewables growth and EV uptake sends global clean energy investment to new high in 2024

Global investment in the low-carbon energy transition grew 11 per cent in 2024 to hit a record $US2.1 trillion, or around $A3.4 trillion, according to a report published by energy analysts BloombergNEF (BNEF), even as the pace of growth slumped dramatically.

Specifically, according to BNEF, while 2024 investment in the energy transition hit a record high in 2024, annual investment grew at a much slower pace than previous years, up 11 per cent, compared to between 24 to 29 per cent annually.

This slump in the pace of investment growth is bad news for global efforts to reach global net zero targets as set out in the Paris Agreement.

BNEF finds that global energy transition investment must average $US5.6 trillion annually between 2025 to 2030 to remain on track with net zero targets. Put another way, current investment levels are only 37 per cent of that which is required to get on track.

As has been the case for several years, then, record levels of investment and capacity deployment remain consistently behind where they need to be.

For example, as was highlighted earlier this year by Albert Cheung, deputy CEO of BNEF, “despite years of continuous and rapid acceleration, it is never enough.”

For example, in 2024, Cheung highlighted that “record numbers of electric vehicles were sold in 2024, record amounts of clean power capacity were installed, [and] new energy storage technologies gained traction”.

As was obvious to Cheung in early January, “global energy transition investment is running well below the level required to get on track for net zero by mid-century.”

“Our report shows just how much growth we’ve seen in the energy transition over the past few years, despite political uncertainty and high interest rates,” said Albert Cheung, speaking last week after the release of BloombergNEF’s Energy Transition Investment Trends 2025.

“There is still much more that needs to be done, especially in emerging areas like industrial decarbonisation, hydrogen and carbon capture, in order to reach global net-zero goals. True partnership between the private and public sectors is the only solution to unlock the potential of these technologies.”

Despite the contrast with where society needs to be to hit its 2050 net zero targets, there remain glimmers of hope.

Electrified transport – including passenger electric vehicles (EVs), electric two- and three-wheelers, commercial electric vehicles, public charging infrastructure, and fuel cell vehicles – remained the largest driver of energy transition investment in 2024, reaching $US757 billion in 2024.

Renewable energy investments reached $US728 billion, including investment in onshore and offshore wind, solar, biofuels, biomass and waste, marine, geothermal, and small hydro. Meanwhile, investment in power grids totalled $US390 billion, including investment in transmission and distribution lines, substation equipment, and the digitalisation of the grid.

Investment in mature clean energy technologies such as renewables, energy storage, electric vehicles, and power grids, accounted for the lion’s share of investment in 2024, totalling $US1.93 trillion, an increase of 14.7 per cent – and this, despite what BNEF describes as “hindrance from policy decisions, higher interest rates and expected slower consumer purchasing.”

Contrasting this, investment in emerging technologies reached only $US155 billion in 2024, an overall drop of 23 per cent on 2023 levels.

Maintaining its dominance as the planet’s fiercest clean energy transition player, China accounted for $US818 billion worth of energy transition investment in 2024, up 20 per cent from 2023. In fact, according to BNEF, “China’s investment growth was equivalent to two-thirds of the total global increase in the year, with all sectors reviewed in the report showing solid growth.”

Conversely, drivers of investment growth in 2023 – the European Union (EU), United States (US), and United Kingdom (UK) – all slumped in 2024. Investment in the US stagnated, reaching only $US338 billion, while investment was down in both the EU and UK, hitting only $US381 billion and $US65.3 billion, respectively.

Demonstrating its dominance over its Western rivals, China’s total investment in 2024 was greater than the combined investments of the EU, US, and UK.

Outside of these big four, both India and Canada increased their own investment in the energy transition, up by 13 per cent and 19 per cent, respectively.