Investments in low-carbon projects are expected to grow by about 10% globally in 2023, according to projections by the energy consulting firm Rystad Energy, reaching US$620,000 million. The sectors included are geothermal, wind and solar power generation, carbon capture, utilization, and storage (CCUS), hydrogen, hydropower, and nuclear energy.

The segment that will attract the most investment is onshore solar and wind power generation, with an estimated US$250,000 million. However, the greatest growth will be in investments in hydrogen projects (149%) and CCUS (136%), though starting from a small base. Investments in hydrogen will total US$7.8 billion, and those in CCUS projects will total US$7.4 billion.

Asia is attracting the bulk of these investments, reflecting the strong momentum in China for the development of solar and wind power generation facilities, followed by Europe and North America. In North America, these investments are expected to grow by 9% in 2023, driven by President Joe Biden’s green energy incentive plan known as the Inflation Reduction Act (IRA).