Despite the economic downturn in 2020 caused by the coronavirus pandemic, global investment in assets aimed at cleaner energy and environment was largest that year, a report by the Bloomberg New Energy Finance has revealed.
The report published on Tuesday said the world yielded a record $501.3 billion to decarbonization in 2020.
Of that amount, companies, governments and households invested $303.5 billion in new renewable energy capacity, two per cent higher than the previous year.
That climb was helped by the biggest-ever build-out solar projects and a $50 billion surge for offshore wind.
Also, entities globally spent $139 billion on electric vehicles and associated charging infrastructure, up 28 per cent on the previous year, setting a new record.
The report said Europe accounted for the biggest slice of global investment, at $166.2 billion (up 67 per cent), an amount linked to sales of electric cars.
While China was at $134.8 billion (down 12 per cent), the U.S. stood at $85.3 billion (down 11 percent).
“Renewable Energy Investment”
The report said global investment in renewable energy capacity moved up two per cent to $303.5 billion in 2020, the second-highest annual figure ever (after 2017’s $313.3 billion), and the seventh consecutive total of more than $250 billion.
“Falling capital costs enabled record volumes of both solar (132GW) and wind (73GW) to be installed on the basis of the modest increase in dollar investment,” it said.
“Highlights of the renewables investment total included a leap of 56 percent in financings of offshore wind projects to $50 billion, including the largest deal ever in that sub-sector – $8.3 billion for the 2.5GW Dogger Bank project in the U.K. North Sea.”
In 2020, the world saw the largest single solar park ever funded — the 2GW Al Dhafrah in the United Arab Emirates, at a cost of $1.1 billion.
“Overall, solar capacity investment was up 12 percent at $148.6 billion, and wind (onshore and offshore) down 6 percent at $142.7 billion. Biomass and waste-to-energy financings were down 3 percent at $10 billion,” the report highlighted.
A breakdown showed that in renewable energy, Europe was at $81.8 billion, up 52 per cent, China at $83.6 billion, down 12 per cent.
It said the U.S. fell 20 per cent to $49.3 billion, as wind investment almost halved, and India slipped 36 percent to $6.2 billion.
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