TLDR:
- Clean technology investment in the U.S. set records in 2023, despite some setbacks in the wind industry and electric vehicle sales.
- The 2022 Inflation Reduction Act spurred clean technology investment, with clean energy and transportation investment reaching $239 billion in 2023.
The clean technology investment landscape in the U.S. experienced a record-setting year in 2023, despite facing minor setbacks in sectors such as the wind industry and electric vehicles. The passage of the 2022 Inflation Reduction Act played a significant role in driving clean technology investment, leading to almost $118 billion in capital investment in the clean energy space alone. The independent research firm Rhodium Group reported a 40% increase in clean energy and transportation investment in Q4 of 2023 compared to the previous year, amounting to $67 billion. Electric vehicle sales, although reported to have slowed down, actually saw a 50% increase in 2023, indicating sustained growth in the sector. The wind industry, on the other hand, experienced a decline in investment, but signs of a better 2024 emerged with repowering projects and new tax credits driving growth. While retail heat pump investments declined in 2023, there was an increase in market share in the residential construction market, pointing towards future growth potential. Overall, the diverse field of clean technology presents numerous opportunities for investors, with emerging climate technologies, sustainable aviation fuels, and carbon capture drawing increased investment in 2023.