Investments in low-carbon projects will grow by around 10% in 2023 globally, according to projections by energy consultancy Rystad Energy, reaching US$620 billion. The sectors considered are geothermal, wind and solar generation, carbon capture, utilization and storage (CCUS), hydrogen, hydroelectricity and nuclear energy.

The segment that will capture the largest investments is offshore wind and solar generation, with an estimated US$250 billion. However, the largest growth will be in investments in hydrogen (149%) and CCUS (136%) projects, but from a small base. Hydrogen investments will total US$7.8 billion and those dedicated to CCUS projects will total US$7.4 billion.

Asia is taking the bulk of these investments, reflecting the strong momentum seen in China for the development of solar and wind power generation facilities, followed by Europe and North America. In the latter territory, a 9% growth in these investments is expected during 2023, driven by President Joe Biden's green energy incentive plan known as the Inflation Reduction Act (IRA).