Investments from record in new energies. Attracted $ 755 billion in 2021

Global spending on the low-carbon energy transition increased by more than a quarter in 2021, led by the electric vehicle and renewable energy sectors.

The total investment was $ 755 billion, up 27% from the previous year, according to a new report released by BloombergNEF, seen by Al Arabiya.net.THE record show investors’ strong appetite for essential technologies to prevent the worst effects of global warming.

However, the expenditure will have to be increased in significant way to achieve net carbon emissions zero by mid-century, as BNEF estimates that $ 2.1 trillion will be needed to invest in the clean energy transition in 2022-25, nearly 3 times the level of last year. The figures include spending on renewable electricity, electric heating, energy storage and nuclear power.

“In all areas, we need to see more investment,” said Albert Cheung, head of analysis at BNEF. “You will have to see a significant increase and this has to be driven by government policies.”

The largest share of spending in 2021 went to new renewable energy projects, such as wind farms and solar plants, as the sector attracted $ 366 billion, up 6.5% from the previous year, with the largest share concentrated part in Asia.

In the Americas, Europe, the Middle East and Africa, investments in renewables were stable compared to 2020.

Renewable energy capacity will need to grow rapidly to provide enough clean energy not only to replace fossil fuels from the world’s power grids, but also to support new sources of demand from electric vehicles.

Investments in electrified transportation, including vehicles and support infrastructure, increased 77% in 2021 to $ 273 billion. BNEF expects this number to increase further in 2022, surpassing the amount spent on renewable energy.

Read More About: Business News