Page 12 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 3: Global energy transition investment

Source- Bloomberg NEF

• Electrified transport remained the largest investment driver, reaching $757 billion in 2024. This
figure includes spending on passenger EVs, electric two- and three-wheelers, commercial electric
vehicles, public charging infrastructure and fuel cell vehicles.

• Investments in renewable energy hit $728 billion, which includes investment in wind (both on-
and offshore), solar, biofuels, biomass and waste, marine, geothermal, and small hydro.

• Finally, investment in power grids totaled $390 billion, which includes investment in transmission
and distribution lines, substation equipment, and the digitalization of the grid.

The report also reveals a marked difference between investment in mature and emerging sectors of the
clean energy economy. Technologies that are proven, commercially scalable and have established
business models, like renewables, energy storage, electric vehicles, and power grids, accounted for the
vast majority of investment in 2024. These sectors drew $1.93 trillion, growing 14.7%, despite hindrance
from policy decisions, higher interest rates and expected slower consumer purchasing.

In contrast, investment in emerging technologies, like electrified heat, hydrogen, carbon capture and
storage (CCS), nuclear, clean industry and clean shipping, reached only $155 billion, for an overall drop of
23% year-on-year. Factors that discourage investment in these sectors include affordability, technology
maturity, and commercial scalability.

February 2025 Page | 11