It’s a big week for the global energy transition. Major governmental players, representatives of international organizations and the private sector, and academic researchers are heading to Foz do Iguaçu, Brazil, for the 15th annual Clean Energy Ministerial and 9th annual Mission Innovation conferences.
For the occasion, BloombergNEF has published a new edition of its Energy Transition Factbook. This flagship report identifies major trends – and offers critical solutions – in the transition to a net-zero world by showcasing progress made in three sectors: clean power, electrified transport and industry.
Here are key takeaways from each of these categories, plus an overview of the investment needed to push the energy transition forward.
Clean power
At the COP28 conference last year, world leaders made headlines by agreeing to a goal of tripling of renewables by 2030. That target aligns with BNEF’s analysis on what is needed to get on track for net zero. Cleaner power generation can drive much-needed emission cuts this decade, buying time for ‘hard-to-abate’ sectors like steelmaking and aviation, for which decarbonization solutions are still emerging.
The good news is that capacity additions are swinging toward renewables – and fast. Globally, zero-emission technologies accounted more than 90% of added capacity last year. Members of the Clean Energy Ministerial are doing even better, with renewables now accounting for over 95% their net capacity additions, up from 46% a decade and a half ago.
Electrified transport
Transportation is also changing drastically, with electric vehicles now representing 18.6% of the passenger vehicle sales around the globe. CEM members slightly beat this global trend, with EVs accounting for 19.4% of autos sold in these markets last year.
Globally, EVs are on track to account for a third of new passenger vehicles sold in 2027, up from just over a sixth in 2023. That’s critical, since direct electrification via batteries is the most efficient, cost-effective and commercially viable route to decarbonizing road transport.
Industry
Decarbonization initiatives in industry are also accelerating, but they face a steeper hill than either power or transport. The technologies needed to decarbonize steel, cement and petrochemicals are still at an early stage and will take time to scale.
Among industrial sectors, steel decarbonization is relatively advanced, with low-emission iron and steel supply set to grow eightfold globally between now and 2030.
Hydrogen is also faring well within the CEM. Of the 54 markets that had a hydrogen strategy at the beginning of 2024, 25 were CEM members.
Investment
Over the last 15 years, CEM members have attracted more than 90% of worldwide investment in energy transition, or a cumulative $8.3 trillion. That’s a huge sum, but much more is needed.
According to BNEF analysis, over $215 trillion is needed to reach net zero by 2050. Investment will be needed not only to deploy technologies but to also address barriers and incentivize the solutions that will allow the energy transition to unfold.
The Energy Transition Factbook 2024 was produced in partnership with the CEM for the fourth consecutive year. Copies will be distributed on site in Foz do Iguaçu over the course of the event, and the link to read the full report can be found here.
About Clean Energy Ministerial
The Clean Energy Ministerial (CEM) is a high-level global forum to promote policies and programs that advance clean energy technology, to share lessons learned and best practices, and to encourage the transition to a global clean energy economy. Initiatives are based on areas of common interest among participating governments and other stakeholders. It brings together a community of the world’s largest and leading countries, companies and international experts to achieve one mission – accelerate clean energy transitions. The CEM is an international clean energy leadership platform, a convening platform, an action platform, and an acceleration platform. For more information, visit: www.cleanenergyministerial.org
About Bloomberg Philanthropies
Bloomberg Philanthropies invests in 700 cities and 150 countries around the world to ensure better, longer lives for the greatest number of people. The organization focuses on creating lasting change in five key areas: the Arts, Education, Environment, Government Innovation, and Public Health. Bloomberg Philanthropies encompasses all of Michael R. Bloomberg’s giving, including his foundation, corporate, and personal philanthropy as well as Bloomberg Associates, a philanthropic consultancy that advises cities around the world. In 2023, Bloomberg Philanthropies distributed $3 billion. For more information, please visit bloomberg.org, sign up for our newsletter, or follow us on: Instagram, LinkedIn, YouTube, Threads, Facebook, and X.