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U.S. clean energy investment hits record growth: report

May 31, 2024
A column chart that displays annual Q1 low-carbon investment in the U.S. from 2018 to 2024. The y-axis represents capital invested in billions, ranging from $15 billion in 2018 to $71 billion in 2024. The chart shows a consistent upward trend, with a significant jump from $51 billion in 2023 to $71 billion in 2024.
Data: Rhodium Group-MIT/CEEPR Clean Investment Monitor; Chart: Axios Visuals

Clean energy investment hit a first-quarter record, led by dollars going into the electric vehicle supply chain, according to a new report.

Why it matters: The report shows that issues around renewable energy production and electric car output are not stopping investors from continuing to back the space.

Zoom in: Clean energy and transportation investment in the U.S. grew 40% to $71 billion in Q1, hitting a record, according to the Clean Investment Monitor.

  • Clean investment accounted for 5.1% of total U.S. private investment in structures, equipment, and durable consumer goods in the U.S., compared with 3.7% in Q1 2023.
  • Investment in manufacturing clean energy and transportation technology continued to be the main driver of clean investment, according to the report, a joint effort of Rhodium Group and MIT's Center for Energy and Environmental Policy Research.

Between the lines: The report doesn't break out different types of private investment. The amount of venture capital invested in Q1, for example, rebounded from 2023 — but the number of deals fell to its slowest pace in five years, per PitchBook data.

Meanwhile, investment in deploying technology to decarbonize energy and industrial production slipped 3% quarter-on-quarter but is still up 51% compared to the same period last year, CIM said.

  • The report said investment in the deployment of clean hydrogen, carbon management, and sustainable aviation fuels grew 37% from the fourth quarter and five-fold from the year-ago period.
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