• 31% increase over the previous year.
• The surge was caused by the energy crisis that followed Russia’s invasion of Ukraine.
• Hydro and nuclear power continued to contribute 32% of total electricity generation in the 27-nation bloc.

PARIS: After hitting $1 trillion last year, investment in clean energy is on the verge of surpassing spending on fossil fuels for the first time.

Despite the achievement, BloombergNEF estimates that spending on energy transition technology must instantly increase to fulfill the aim of net-zero emissions by 2050 to mitigate climate change.

Renewables, nuclear, zero-emission vehicles, and recycling initiatives received $1.1 trillion in investment last year, matching spending on fossil fuels, according to the report.

This represents a 31% increase over the previous year and the first time the investment amount has been calculated in trillions.

According to the research, the surge was caused by the energy crisis that followed Russia’s invasion of Ukraine.

“Investment in clean energy technology is on the verge of overtaking fossil fuel investments and will not look back,” said Albert Cheung, BloombergNEF’s head of global analysis.

Top polluter

China, the world’s top polluter, was by far the largest investor in energy transition, with the US trailing far behind.

China accounted for about half of the total worldwide investment, mainly in the steel recycling, renewable energy, and electric vehicles (EV) sectors.

Germany has maintained its third-place ranking, owing partly to a strong EV market.

However, a reduction in offshore wind projects caused investment in the UK to plummet by about a fifth, according to the research.

Renewable energy was the most heavily invested in the sector globally, accounting for $495 billion, followed by electrified transportation projects.

With the exception of nuclear power, all other sectors received unprecedented levels of investment, according to the experts.

The advancement of energy transition technologies coincides with an increase in fossil fuel investment in many countries in an effort to ensure energy security.

The war in Ukraine disrupted worldwide power supply because Russia, a major supplier of fossil fuels, curtailed gas supplies to European Union (EU) countries and was sanctioned for the invasion.

According to a separate analysis released on Tuesday by Ember, an energy think tank, wind, and solar energy generated 22% of EU electricity, exceeding gas (20%) for the first time.

Hydro and nuclear power continued to contribute 32% of total electricity generation in the 27-nation bloc.

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