section_path: Finance
section_name: Finance
paragraph_text: Finance
  
  The International Renewable Energy Agency 's (IRENA) 2023 report on renewable energy finance highlights steady investment growth since 2018: USD 348 billion in 2020 (a 5.6% increase from 2019), USD 430 billion in 2021 (24% up from 2020), and USD 499 billion in 2022 (16% higher). This trend is driven by increasing recognition of renewable energy's role in mitigating climate change and enhancing energy security, along with investor interest in alternatives to fossil fuels. Policies such as feed-in tariffs in China and Vietnam have significantly increased renewable adoption. Furthermore, from 2013 to 2022, installation costs for solar photovoltaic (PV), onshore wind, and offshore wind fell by 69%, 33%, and 45%, respectively, making renewables more cost-effective.
  
  Between 2013 and 2022, the renewable energy sector underwent a significant realignment of investment priorities. Investment in solar and wind energy technologies markedly increased. In contrast, other renewable technologies such as hydropower (including pumped storage hydropower), biomass, biofuels, geothermal, and marine energy experienced a substantial decrease in financial investment. Notably, from 2017 to 2022, investment in these alternative renewable technologies declined by 45%, falling from USD 35 billion to USD 17 billion.
  
  In 2023, the renewable energy sector experienced a significant surge in investments, particularly in solar and wind technologies, totaling approximately USD 200 billion—a 75% increase from the previous year. The increased investments in 2023 contributed between 1% and 4% to the GDP in key regions including the United States, China, the European Union, and India.
  
  The energy sector receives investments of approximately USD 3 trillion each year, with USD 1.9 trillion directed towards clean energy technologies and infrastructure. To meet the targets set in the Net Zero Emissions (NZE) Scenario by 2035, this investment must increase to USD 5.3 trillion per year.