New Energy Outlook 2022, Climatescope, Battery Price Survey, Supply chain & Zero Emission Vehicles

New Energy Outlook 2022, Climatescope, Battery Price Survey, Supply chain & Zero Emission Vehicles

Hi, welcome to the 9th edition of?The Race to NetZero?Newsletter, a monthly round-up of the best research and news from?BloombergNEF.

This is the last edition of 2023, I hope you enjoy it and get ready for more content in 2023!

Last month we published a lot of valuable reports around COP27, find a selection below:

Climatescope 2022: Developing Countries Raise Their Clean Power Policy Ambitions

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Policymakers in emerging markets and developing economies are raising their sights when it comes to renewable energy, research company BloombergNEF (BNEF) finds in the latest edition of its annual?Climatescope ?survey. More than nine in 10 developing countries have made public commitments to install and consume certain volumes of renewable power with specific deadlines.

That’s up from 82% a year earlier and 67% in 2019, according to BNEF. Possible reasons for the change could include a desire to demonstrate progress ahead of the COP27 global climate talks, anxiety over energy security amid rising fossil fuel prices, fears about climate change, or simply the appeal of building renewables because they are affordable.

Access the Climatescope Public Website

Mobilizing Capital Into Emerging Markets and Developing Economies

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Emerging markets and developing economies (EM&DEs) account for nearly half of the total global greenhouse gas (GHG) emissions and over a third of energy-related emissions. However, the volume of capital currently being deployed to transition these countries to lower-carbon sources of energy is insufficient given the size of the climate challenge.

The BNEF report ‘Mobilizing Capital Into Emerging Markets and Developing Economies’, commissioned by GFANZ, offers a snapshot of current conditions for energy transition investment in EM&DEs. It analyses the slowing capital flows from wealthy to less developed nations post Covid-19. It notes that the “pipeline” of new clean energy projects under development has shrunk, that development finance institutions have deployed fewer dollars, that individual nations have implemented fewer critical policies and that the private sector scaled back investments in 2020-2021. Each major stakeholder group must raise its effort to help EM&DEs transition to lower-carbon energy.

Download the complete report here.

New Energy Outlook 2022: The $7 Trillion a Year Needed to Hit Net-Zero Goal

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Source: BloombergNEF. Note: The ‘no transition’ scenario is a hypothetical counterfactual. In the power and transport sector, it keeps the current fuel mix constant at 2021 levels, with emissions growing proportionally to forecast energy demand. For all other sectors, the counterfactual to the Net Zero Scenario (NZS) is the Economic Transition Scenario (ETS). CCS is carbon capture and storage.

The transition to a net-zero emissions world opens up an investment opportunity that totals almost $200 trillion by 2050 — or nearly $7 trillion a year.

Electric vehicles and low-carbon power will be the biggest markets for investors, followed by power grids, according to the latest?outlook?from BloombergNEF.

The research and analysis firm modeled a path to global net-zero by 2050 and found the world can limit warming to 1.77C. For that, “clean power deployment needs to quadruple by 2030, in addition to a major investment in carbon capture and storage, advanced nuclear technologies, and hydrogen,” said?David Hostert, global head of economics and modeling at?BNEF?and lead author of the?report.

Access the New Energy Outlook 2022 Executive Summary

2022 Lithium-ion Battery Price Survey: Lithium-ion Battery Pack Prices Rise for First Time to an Average of $151/kWh

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Rising raw material and battery component prices and soaring inflation have led to the first ever increase in lithium-ion battery pack prices since BloombergNEF (BNEF) began tracking the market in 2010. After more than a decade of declines, volume-weighted average prices for lithium-ion battery packs across all sectors have increased to $151/kWh in 2022, a 7% rise from last year in real terms. The upward cost pressure on batteries outpaced the higher adoption of lower cost chemistries like lithium iron phosphate (LFP). BloombergNEF expects prices to stay at similar levels next year, further defying historical trends.

Read Full Article

Localizing Clean Energy Value Chains Will Come at a Cost

Clean energy manufacturing capacity by location

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1. China dominates clean energy manufacturing

2. Localizing clean energy factories is a political priority

3. Onshoring manufacturing will come at a cost

4. The Inflation Reduction Act is a game-changer

5. Nurturing ecosystems will not be easy

Access the Full report

Zero-Emission Vehicle Adoption is Accelerating, But Stronger Push is Needed to Stay on Track for Net Zero

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Adoption of zero-emission vehicles accelerated in the past year across almost all markets and vehicle segments, according to the?2022 Zero-Emission Vehicles Factbook?published by research company BloombergNEF (BNEF) at COP27 in Egypt.

The ZEV Factbook finds that global momentum toward zero-emission road transport has continued to accelerate in 2022, with passenger electric vehicle sales on track for more than 10 million units, up from 6.6 million in 2021. Over 13% of new car sales globally in the first half of 2022 were electric, rising from 8.7% for all of 2021. Global lithium-ion battery manufacturing capacity also increased 38% since 2021 and overall spending on clean road transport worldwide is set to exceed $450 billion this year.

Access the full report

For more BNEF public content, don't hesitate to check-out our Blog?here ?or if you prefer to watch videos, there are plenty of videos in our Vimeo Channel?here

I hope you enjoyed the content and as always don't hesitate to comment and/or provide feedback to improve this newsletter.

This was my last contribution for 2022, enjoy the holidays and see you in 2023!

Best Regards, Saludos, Cordialement

Guillaume

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