2021 Recap, 2022 predictions and Beyond - BloombergNEF

Welcome to the 1st edition of Race to Zero, a newsletter I designed to keep you up with the best research and news published by BloombergNEF (BNEF).

If you are not familiar with us, BloombergNEF is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities. See more at www.bnef.com

This 1st edition will cover what happened in Q1 2022 but the idea is a monthly update as the market is moving fast.

Global Investment in Low-Carbon Energy Transition Hit $755 Billion in 2021

Global investment in the energy transition totaled $755 billion in 2021 – a new record – off the back of rising climate ambition and policy action from countries around the world.

Investment rose in almost every sector, including renewable energy, energy storage, electrified transport, electrified heat, nuclear, hydrogen and sustainable materials. Only carbon capture and storage (CCS) recorded a dip in investment, though there were many new projects announced in the year.

Read the Press Release here

Some of our sector teams have published their 10 predictions for 2022, check them out below:

Wind – 10 Predictions for 2022

Read Article here

Solar – 10 Predictions for 2022

Read Article here

Gas & LNG – 10 Predictions for 2022

Read Article here

Hydrogen – 10 Predictions for 2022

Read Article here

Corporate Clean Energy Buying Tops 30GW Mark in Record Year

Corporations bought a record 31.1 gigawatts of clean energy through power purchase agreements, or PPAs, in 2021, up nearly 24% from the previous year’s record of 25.1GW. Over two thirds of this purchasing (65%) occurred in the U.S. However, also underpinning the strong growth is a surge in activity from the largest technology companies, who collectively signed over half of the deals.

Read full article here

Carbon Capture and Storage Investment Dips to $2.3 Billion

Global investment in carbon capture and storage (CCS) reached $2.3 billion in 2021, down $0.7 billion from 2020.

While last year saw a record number of announcements, investment fell behind as developers seek to get more for their money from falling capture costs. As the industry moves toward large-scale projects, total investment is determined by whether a few projects reach a final investment decision (FID).

Read full article here

Corporate Financing for Climate Tech Soars to $165 Billion

Climate-tech companies raised $165 billion across public and private markets in 2021. The energy and transport sectors attracted the most capital, at $68.5 billion and $67.3 billion, respectively.

Popular technologies for investment were wind, solar, hydrogen and fuel cells, batteries and electric vehicles — all of which need capital to scale. The largest deal was the $12 billion initial public offering (IPO) of electric truck company Rivian, backed by investors including Amazon and Ford.

Read full article here

Venture Capital, PE Invest $53.7 Billion in Climate Tech

The push to lower global greenhouse gas emissions has seen an increasing amount of early-stage capital flow to companies developing decarbonization solutions. Climate-tech startups raised $53.7 billion from venture capital and private equity (VC/PE) in 2021, according to our latest Investment Radar. Almost $22 billion of the total went to the transport sector, in technologies ranging from lithium-ion batteries to electric aviation.

BNEF defines ‘climate tech’ as technologies and business models that act to decarbonize six sectors: energy, transport, buildings and infrastructure, carbon and climate, industry and agriculture. Energy and transport have typically been the most popular areas for investment, accounting for over two-thirds of funding last year, although the nascent agriculture sector has been gaining traction.

Read full article here

Green Bond Boom Sees Issuances Double to $621 Billion

The green bond market accelerated its momentum in 2021, with issuances doubling to $621 billion. By the end of last year, over $1.8 trillion of green bonds had been sold since the label made its debut back in 2007.

The proceeds of green bonds are used to finance or refinance eligible environmental activities. Europe is still the most prolific market and $308 billion of green bonds were issued in the region in 2021. Asia is growing the fastest, however, with its share of total issuances rising from 14% in 2020 to 24% in 2021.

Read Full article here

Europe Plans Break From Russian Gas

Europe plans to urgently diversify its gas supplies, while accelerating decarbonization efforts to reduce overall gas use. In a wide range of measures, European policy-makers are scrambling to reduce gas consumption in light of soaring prices and the Russian invasion of Ukraine. The European Commission released on March 8, 2022, its ‘RePowerEU’ plan, setting out measures to cut Russian gas imports by over two thirds in 2022. Half of the 102 billion cubic meters of natural gas to be cut are to be substituted with additional imports, while the rest will rely on behavioral energy savings and ramping up renewables deployments.

Read full article here

If you have made it this far, you probably like to read, but here is a bonus for you.

In February we hosted our San Francisco Summit, focusing on Auto & Tech, here are some of the best videos form the Summit:

Last but not least, check-out 2 extra videos on Hydrogen and Sustainability, part of another event we hosted in Houston earlier this year: Barrel of Tomorrow

Please comment, provide feedback and don't hesitate to share this newsletter, we are all on the same boat racing to get to NetZero emissions ASAP.

Merci

Guillaume Fouché

BloombergNEF