Climate tech has come to the fore like never before with its potential to be a safe haven investment in a macroeconomic environment of uncertainty. For more, read Booming Investment In Renewables Is Set To Continue In 2023 And Beyond.
- Clean energy investment significantly accelerated and is expected to surpass $1.4 trillion in 2022, says the World Economic Forum.
- Three-quarters of overall growth in energy investment is attributable to clean energy, which has been growing at an average annual rate of 12% since 2020.
- Governments across Europe are doing their part to assist in the energy transition in a meaningful way, with the EU accelerating the speed at which permits are given to renewable energy projects.
- Germany approved plans for each state to allocate a minimum amount of land for onshore wind farms and EU energy ministers backed laws with targets to get 40% of energy from renewable sources by 2030.
- Deloitte’s Renewable Energy Outlook for 2023 report forecasts that the Inflation Reduction Act’s (IRA) extension of tax credits for renewable energy projects will lead to up to 550 gigawatts of additional clean energy by the end of the 2020s.
- Private investment in renewables in the U.S. reached a record high of $10 billion in 2022, investment levels that Deloitte forecasts are expected to continue into 2023 as investors are attracted by transparent and predictable returns on mature technologies that are backed by the IRA’s 10-year tax credits.
Path to 100% Perspective
Recent investments in clean energy make it abundantly clear that the renewable revolution is here. Increasing and being consistent in these investments is necessary to realize a 100% renewable energy future. As energy leaders take stock post-COVID and restructure their models, now is a key moment to set clear frameworks for achieving net zero. For most, it’s not about starting from scratch, but understanding where and how to invest to drive future resilience.