Growth in global low-carbon project spending is slated to slow in 2023 as developers “tighten their purse strings after two years of soaring prices,” the consultancy Rystad Energy said, Ben writes.
Why it matters: Faster deployment of renewables and other climate-friendly energy sources is likely needed to reach or stay close to Paris Agreement goals.
Driving the news: Rystad estimates combined spending across eight types of low-carbon projects will grow 10% this year to $620 billion, a tally that includes solar, wind, carbon capture, geothermal and more. Spending grew by 21% in 2022.
What they’re saying: “Rampant inflation typically triggers fiscal restraint across industries, and spending will likely bounce back in the coming years,” Rystad’s Audun Martinsen said in a statement.
Zoom in: Growth in percentage terms will vary.
- Two mature technologies, solar and onshore wind, see 6% and 12% increases, respectively.
- Carbon capture (136%) and hydrogen (149%) soar, but from vastly lower starting points.
What we’re watching: Electric vehicles. BloombergNEF, in a new report, estimates that sales growth will slow slightly this year compared to the pace in 2022 and 2021.
- It estimates a record-shattering 13.6 million sales this year, up from 10 million in 2022.
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