Global clean industry investment fell sharply in 2024

AI generated summary

In 2024, global investment in decarbonizing heavy industries plummeted to $31 billion, a nearly 60% decrease from the previous year, despite a record $2.1 trillion investment in the broader energy transition. This disparity highlights a 'two-speed transition' in which funding is primarily directed towards established technologies like renewable energy and electric vehicles, while heavy industries such as steel and cement struggle with challenges related to affordability and scalability.

Clean steel projects experienced the most significant financial downturn, with investments dropping from $40.2 billion in 2023 to approximately $17.3 billion in 2024. Factors contributing to this decline include the high costs and limited availability of green hydrogen, which is essential for hydrogen-based steelmaking. The future of clean industry investments in 2025 hinges on key policy developments in the U.S., EU, and China, which could either stimulate or further hinder investment in these critical sectors.