Clean energy and transportation investments in the United States soared to unprecedented levels in the fourth quarter of 2023, reaching $67 billion, according to the latest report from Rhodium Group and MIT CEEPR’s Clean Investment Monitor database. This represents a remarkable 40% increase from the corresponding period in 2022.
Clean investments, the report reveals, now constitute 5% of all private investments in structures, equipment, and durable consumer goods in the country, marking a significant uptick from 3.7% recorded at the close of 2022. Throughout 2023, total clean investment amounted to $239 billion, reflecting an impressive 38% surge compared to the previous year.
Retail investment emerged as a significant driver, accounting for nearly half of the total clean investment in 2023. This growth was primarily fueled by a robust 52% year-on-year increase in electric vehicle sales.
The deployment of utility-scale solar and storage systems investments also experienced substantial growth, surging by over 50% to reach $53 billion.
A particularly noteworthy trend highlighted in the report is the exponential growth in investment in emerging climate technologies, which skyrocketed from $0.9 billion in 2022 to $9.1 billion in 2023 — an astonishing ten-fold increase. Similarly, investment in the manufacturing of clean technology surged by 153% to $49 billion in 2023, the report found.
However, amidst the overall positive trajectory, wind investment experienced a setback, declining to $9 billion in 2023 — a significant 37% decrease from the previous year. This decline, despite a minor uptick in the fourth quarter of 2023, highlights challenges within the wind sector that warrant further examination.
For the first time in 2023, both annually and in the fourth quarter, investments in emerging climate technologies, — clean hydrogen, sustainable aviation fuels, and carbon capture — surpassed investments in wind.
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The report also sheds light on federal government investments in clean energy and transportation projects, estimating a total of $34 billion allocated in fiscal year 2023. This includes mechanisms like tax credits, grants, and the fiscal cost of government loans, contributing to the overall $220 billion invested in clean energy and transportation initiatives during the same period.
Despite challenges within specific sectors such as wind and retail investment in heat pumps, the overarching trends depicted in the report underscore a resounding commitment to advancing clean energy and sustainable transportation in the United States.
As investment continues to surge and diversify, stakeholders across various industries are poised to leverage these opportunities to drive meaningful progress towards a greener and more resilient future.
