US spending surges on cutting-edge climate technology.

February 29, 2024


US clean energy and transport investments surged by 38% in 2023, reaching $239 billion, driven by President Joe Biden’s climate law. Fourth quarter investments hit a record $67 billion, with a tenfold increase in funding for emerging climate technologies like green hydrogen and carbon capture. The US Infrastructure Investment and Jobs Act and the Inflation Reduction Act have catalyzed this growth.

Next-Generation Climate Technology Sees Surge in US Spending

Investments in carbon capture, hydrogen, and other nascent technologies rose tenfold in 2023, hitting $9.1 billion. Nearly half of this investment came in the fourth quarter, driven by the US Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) signed in 2021 and 2022 respectively.

The legislation accelerated the pace of growth for these technologies, signaling their importance in meeting US climate goals. Technologies like green hydrogen and carbon capture now enjoy US-backed mechanisms designed to encourage deployment. Electric vehicle sales grew significantly, making up almost half of the year’s total investments.

Clean tech now accounts for 5% of private US investment in fixed assets and durable consumer goods, up from under 4% a year ago. Despite progress, global investments in clean technology fall short of what’s needed to achieve net zero emissions. The possibility of Republicans rolling back Biden’s climate law could impact future spending.

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