This is an abridged version of BloombergNEF’s annual accounting of global investment in the low-carbon energy transition. BNEF clients can find the full version on Bloomberg Terminal or bnef.com
Previously focused on renewables, the report now includes investment figures for a wider scope of transition areas, including energy storage, electrified vehicles and heating, hydrogen, and carbon capture and storage. We also cover thematic highlights such as the rise of green finance, performance of clean energy stocks and investment by oil majors.

For large infrastructure projects such as renewables, stationary energy storage, hydrogen production, EV charging and CCS, our figures are built based on bottom-up intelligence on individual projects and financial commitments. In general, we account for money that has been committed to a specific project, whether through a final investment decision, a government grant allocation, or a project proceeding to construction and commissioning. We don’t include money that hasn’t been explicitly committed to a known project (such as unallocated government grant funding), or projects that have not yet reached final investment decision. We apply cost estimates where project values are not disclosed.

In 2020, global investment in the low-carbon energy transition totalled $501.3 billion, up from $458.6 billion in 2019 and just $235.4 billion in 2010. This figure includes investment in projects,
such as renewable power, energy storage, EV charging infrastructure, hydrogen production and CCS projects – as well as end-user purchases of low-carbon energy devices, such as smallscale solar systems, heat pumps and zero-emission vehicles.

– The largest sector in 2020 was renewable energy, which attracted $303.5 billion for new projects and small-scale systems. This was up 2% on 2019, despite Covid-related delays to some deals.

– The second-biggest was electric transport, which saw $139 billion of outlays on new vehicles and charging infrastructure, up 28%. Electric heat got $50.8 billion of investment, up 12%.

– Hydrogen and CCS are small sectors for now, but are expected to grow. In 2020, they received investment of $1.5 billion and $3 billion, respectively down 20% and up 212%.

– Europe and China are currently vying for top position among markets active in energy transition investment.