A separate report earlier this year, Energy Transition Investment Trends 2022, found global investment in low-carbon energy hit a new record of $755 billion in 2021, up by 27% on the year before.
At the same time, the world’s 60 biggest banks provided almost the same amount to fossil fuel companies in 2021 – $742 billion – according to data from environmental organization the Rainforest Action Network.
The energy team at the World Economic Forum says “decoupling” from fossil fuels is more important than ever, especially with heightened risks over the security of world energy supplies.
“Following Russia’s invasion of Ukraine, many countries have raised their renewable energy ambitions further,” says Harsh Vijay Singh, Project Lead at the Forum’s System Initiative on Shaping the Future of Energy. “However, bottlenecks remain – mainly on the supply chain side, and on project implementation.”
Clean energy investment
Delays in areas like the permitting of facilities and setting up electricity interconnections between countries will need to be addressed, Singh says.
Progress on developing grids to support high levels of renewable energy has also been slow.
“Governments are beginning to look into this,” Singh adds. The Bipartisan Infrastructure Deal in the United States is one example. This includes a $65 million investment in clean energy transmission and the country’s electricity grid – the largest investment of its kind in American history, the White House said.
This article was first published by the World Economic Forum.
Victoria Masterson is Senior Writer at Formative Content.