(BloombergNEF, 10.Apr.2024) — Despite posting only modest growth in 2023, China remains by far the largest market for energy transition spending, reaching $676bn in 2023, according to a report by BloombergNEF. This is 38% of the global total.
The US is the second-largest funding destination for energy transition technologies, with a total of $303bn spent in 2023. The effects of the Inflation Reduction Act (IRA) are starting to be felt, and the gap to China has narrowed.
Germany retained third position among individual economies with a total of $96bn. Its investment mix is now heavily dominated by electrified transport.
There are five European countries in the top 10, of which four are EU member states. The EU as a whole invested more than the US at $341bn in 2023, and the UK’s $74bn puts the European total well above $400bn.
This means that together, the US, EU and UK invested more than China in 2023, which was not the case in 2022.
Brazil, Japan and India all feature in the top 10, with more than $30bn invested in each country.
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