Global landscape of renewable energy finance, 2023

Global investments in energy transition technologies reached a record USD 1.3 trillion in 2022, yet this remains insufficient to meet climate goals, with annual needs estimated at over USD 5 trillion. While renewable energy investments are growing, they are heavily concentrated in a few regions—primarily East Asia and the Pacific—and specific technologies like solar PV and wind. Conversely, fossil fuel investments continue to rise, and subsidies remain high, particularly in Europe and the MENA region. The report emphasizes the need for a fundamental shift in financing for the Global South, calling for more innovative public finance instruments, the mobilization of institutional capital, and a transition away from fossil fuel funding to ensure a just and inclusive energy transition.

• Global investments in energy transition technologies, including renewable energy, energy efficiency, electrified transport and heat, energy storage, hydrogen, and carbon capture and storage (CCS), reached a record USD 1.3 trillion in 2022, representing a 19% increase from 2021.
• Current investment levels are inadequate for the 1.5°C Scenario, which requires average annual investments of more than USD 5 trillion between 2023 and 2030. This would necessitate redirecting USD 1 trillion per year from fossil fuels to transition technologies.
• Fossil fuel investments are increasing despite climate goals, reaching USD 953 billion in 2022. Between 2016 and 2022, outstanding debt for fossil fuel companies in emerging markets and developing economies rose by 400% for coal and 225% for oil and gas.
• Renewable energy investments are highly concentrated geographically and technologically. In 2022, the East Asia and Pacific region attracted two-thirds of global investment, led by China. Technologically, solar PV and wind dominate, while investments in end uses like heat and transport are lagging.
• There is a significant disparity in per capita investment between developed and developing regions. By 2021, renewable energy investment per capita in Europe was 41 times higher than in Sub-Saharan Africa, and 57 times higher in North America (excluding Mexico).
• The off-grid renewable energy sector is primarily concentrated in Sub-Saharan Africa, which attracted over 70% of global off-grid investments between 2010 and 2021 (USD 2.2 billion). However, these investments are increasingly concentrated among seven large incumbent companies.
• Private finance provides the majority of renewable energy investment (approximately 75% between 2013-2020), with a shift from equity to debt financing as technologies like solar PV and onshore wind mature.

APA

Hawila, D., Rana, F., Strinati, C., Stout, S., Connolly, J., Fajrian, S., Barbalho, A., & Lozo, S. (2023). Global landscape of renewable energy finance, 2023. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/02/Executive-Summary.pdf

Chicago

Hawila, Diala, Faran Rana, Costanza Strinati, Sean Stout, Jake Connolly, Sandy Fajrian, Antonio Barbalho, and Sandra Lozo. Global landscape of renewable energy finance, 2023. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/02/Executive-Summary.pdf.

Wikipedia

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BibTeX

@techreport{hawila2023global, author = {Hawila, Diala and Rana, Faran and Strinati, Costanza and Stout, Sean and Connolly, Jake and Fajrian, Sandy and Barbalho, Antonio and Lozo, Sandra}, title = {{Global landscape of renewable energy finance, 2023}}, institution = {Climate Policy Initiative}, year = {2023}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/02/Executive-Summary.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }