The investment landscape for clean energy and transportation in the United States has hit a new high, reaching an impressive $71 billion in the first quarter of 2024. This milestone, detailed in the latest Clean Investment Monitor report, showcases the remarkable growth and sustained interest in sustainable technology investments. Here’s a closer look at the key highlights from the report.
Key Highlights
- Total Investment: $71 billion in Q1 2024, a 40% increase from Q1 2023.
- Share of Private Investment: Clean investments accounted for 5.1% of total US private investment.
- Manufacturing Growth: 28% quarter-on-quarter increase, driven mainly by the electric vehicle (EV) supply chain.
- Decarbonization Technologies: 51% year-on-year growth in technology deployment to decarbonize energy and industrial production.
- Emerging Climate Technologies (ECT): Investment surged by 37% quarter-on-quarter and increased five-fold year-on-year.
Investment Segments
Manufacturing
Manufacturing continues to be the driving force behind clean investment. In Q1 2024, investment in manufacturing clean energy and transportation technologies reached $17 billion, marking a 28% increase from the previous quarter and a significant 115% rise from Q1 2023. Key areas include:
- Electric Vehicle Supply Chain: Dominated investments with $14 billion, encompassing critical minerals, batteries, vehicle assembly, and charging equipment.
- Solar Manufacturing: Saw a 248% year-on-year increase, totaling $2 billion.
- Battery Manufacturing: Increased by 36% quarter-on-quarter, reaching $11 billion.
- Wind Manufacturing: Recovered to a record $334 million after a dip in Q4 2023.
Energy & Industry
The energy and industry segment saw $24 billion in new investments, slightly down by 3% from the previous quarter but up 51% compared to Q1 2023. Noteworthy trends include:
- Utility-Scale Solar and Storage: Accounted for the majority with $15 billion.
- Grid-Scale Storage: Grew by 7% quarter-on-quarter and 48% year-on-year, reaching a record $5.8 billion.
- Wind Investment: Decreased by 32% quarter-on-quarter, totaling $1.9 billion, a 5% decline from Q1 2023.
- Emerging Climate Technologies: Investments in clean hydrogen, carbon management, and sustainable aviation fuels surged, totaling $6.3 billion—a 37% increase quarter-on-quarter and a five-fold increase year-on-year.
Retail
Retail investments, including zero-emission vehicles (ZEVs), distributed renewable electricity, storage, and heat pumps, totaled $31 billion. This represents a 3% decline from Q4 2023 but a 12% increase from Q1 2023. Detailed trends include:
- Zero-Emission Vehicles (ZEVs): Registrations fell by 9% quarter-on-quarter but rose 14% year-on-year.
- Distributed Electricity and Storage: Declined by 3% quarter-on-quarter but up 5% from Q1 2023.
- Heat Pumps: Investment grew by 36% quarter-on-quarter to $4.7 billion, despite being down 9% year-on-year.
Figures and Trends
Clean Investment by Quarter
Clean energy and transportation investments have shown consistent growth since 2021. The first quarter of 2024 continues this trend with significant investments across various segments.
Actual Clean Investment Share
Clean investment now represents a significant share of total US private investment in structures, equipment, and durable consumer goods, growing from 3.7% in Q1 2023 to 5.1% in Q1 2024.
Manufacturing Investment by Technology
The dominance of the EV supply chain in manufacturing investments highlights the sector’s critical role in the transition to clean energy.
Energy & Industry Investment
Utility-scale solar and storage continue to be significant, while emerging climate technologies gain momentum.
Conclusion
The first quarter of 2024 has set a new benchmark for clean energy and transportation investments in the US. With continued growth across manufacturing, energy, industry, and retail segments, the momentum towards a more sustainable future shows no signs of slowing. These investments are not just numbers but represent significant steps towards decarbonizing our economy and combating climate change.
