Renewed ambition

Earlier this week at the climate change summit COP28 in Dubai, more than 100 countries committed to tripling renewable energy generation capacity by 2030. To achieve the commitment, substantial investments in energy generation equipment, electricity grids and energy storage must be made by governments themselves and/or by companies who are incentivized by reduced regulation, subsidies and tax credits. Global energy transition investments have already increased threefold from USD 391 billion in 2015 to USD 1,179 billion in 2022, according to BloombergNEF. Most investments have gone into renewable energy and electrified transportation. Despite the deployment of renewable energy generation surging in the past decade rising costs, labor shortages and supply chain issues led to several project delays and cancellations in the past few months, costing several developers billions of dollars in impairments.

 Source: BloombergNEF, December 2023.