The energy transition garnered record investment last year, but the pace slowed

, Senior Global Correspondent
Source: BloombergNEF • Clean energy includes renewable energy, energy storage, nuclear power, hydrogen and carbon capture and storage. Transport includes electrified heat and electrified transportation. Other includes clean shipping and clean industry.

Clean energy grew virtually everywhere last year, but especially in China.

Investments in the global energy transition crossed $2 trillion for the first time in 2024, yet the pace — 11% higher than a year earlier — was slower than other recent years, according to a recent report from BloombergNEF.

What’s more, total global investment levels are running far off the pace of what would be needed to reach net-zero emissions by 2050. That would require 63% more investment than actually took place, BNEF said.

This milestone, and the revelation about how far off track the world is in its decarbonization goals, comes as the United States under President Donald Trump is retreating from the leadership role it had taken in the energy transition under former President Joe Biden. While many analysts predict market forces will keep the energy transition moving forward, Trump’s actions could slow it down at a crucial time in the race to reduce emissions and slow climate change.

The investments tracked in the report include the whole range of energy transition financing, from direct spending on the clean energy supply chain to equity in climate-tech companies and debt issuance for energy transition purposes.

Globally, the pace of investments slowed significantly last year after a breakneck growth rate of between 24% and 29% from 2021 to 2023, according to BNEF. Investments in some types of clean energy technology declined in 2024, including nuclear power, carbon capture, shipping, the electrification of heat and clean industrialization.

Yet those were outweighed by growth in electrified transport, renewable energy, power grids and energy storage — all of which climbed to new records.

The Asia Pacific region, home to some of the world’s fastest growing economies, poured 21% more investments into the clean energy sector last year compared to 2023, amounting to half the global total. Mainland China led the way, accounting for two-thirds of the total global uptick in energy transition investment. The $818 billion in Chinese investments was double any other economy and far exceeded the U.S. total of $338 billion.

With the U.S. retreating on the world stage, China is poised to take on even more of a leadership role in global climate efforts. The country already dominates cleantech manufacturing.