In the final quarter of 2024, clean energy and transportation investment in the United States totaled $70 billion, reflecting a slight 1% decline from the previous quarter but a 6% increase from the same period in 2023. This growth trend indicates a positive trajectory despite a deceleration from previous quarters of continuous increase. Clean investment accounted for a significant portion of total US private investment, signaling a shift towards more sustainable practices in the economy.
The primary drivers of investment were consumer purchases and installations of clean technology, amounting to $36 billion. Retail investment experienced growth, while manufacturing projects, utility-scale clean electricity, and industrial decarbonization technologies faced declines. Notably, retail investment increased by 15% compared to the same quarter in 2023, showcasing a growing consumer interest in clean technologies.
This report provides insights into clean technology and infrastructure investments during the final quarter of 2024, preceding any policy changes in 2025. The period covered the US campaign season, the election, and efforts to finalize tax credit guidance and commit federal grants and loans appropriated in major climate legislation. The data presented in the report offers a comprehensive view of the clean energy landscape in the US.
Since Q3 2022, there has been substantial investment totaling $289 billion in the construction and installation of facilities manufacturing or deploying clean technologies. Republican-led districts have benefitted significantly from this investment, with $223 billion compared to $66 billion in Democrat-led districts. Looking ahead, there is a substantial pipeline of outstanding investment, with $402 billion expected in Republican districts and $122 billion in Democrat-led districts.
Breaking down the investment trends further, retail investment drove the growth in clean energy and transportation investment, accounting for 51% of total clean investment in Q4. Actual retail investment increased by 4% from the previous quarter and 15% from the same period in 2023. On the other hand, investments in energy & industry and manufacturing projects experienced fluctuations but showed overall increases compared to the previous year.
Within the manufacturing sector, the electric vehicle (EV) supply chain dominated investments, reflecting a shift towards cleaner transportation options. Battery manufacturing saw significant growth, while solar manufacturing experienced fluctuations but showed an overall increase compared to the previous year. The pipeline of new clean energy and transportation manufacturing investments remained steady, with most announcements in battery manufacturing projects.
Energy & industry investments focused on clean electricity production and industrial decarbonization, with utility-scale solar and storage projects leading the way. Despite some quarterly declines in certain technologies, the full year of 2024 saw an overall increase in energy & industry investments compared to 2023. New investment announcements in this sector also showed promising growth trends, particularly in utility electricity projects.
Consumer purchases of zero-emission vehicles, distributed renewable electricity, and heat pumps drove retail investments, with total retail investment reaching $131 billion in 2024. Zero-emission vehicle sales experienced growth, particularly in battery electric vehicles, showcasing a shift towards sustainable transportation options. Distributed electricity generation and storage investments remained relatively stable, while heat pump investments showed fluctuations but indicated an overall upward trend compared to previous years.
The Clean Investment Monitor data offers valuable insights into the evolving landscape of clean energy investments in the US. With a focus on sustainability and innovation, these investments play a crucial role in driving economic growth, reducing carbon emissions, and shaping the future of energy and transportation sectors.
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