The Growth of Clean Energy Investment in the American Economy

According to the Clean Investment Monitor, clean energy investment in the American economy has increased significantly, reaching $213 billion in new investment over the past year, a 37% increase compared to the previous year. This growth in investment is benefiting various sectors, with the most significant and rapid growth observed in clean energy manufacturing, driven by the electric vehicle industry, battery manufacturing, and electric vehicle assembly. Retail investment in clean energy has also seen growth, particularly in electric vehicles, heat pumps, and distributed energy such as rooftop solar. The data also highlights the economic geography of these investments, with the emergence of energy investment belts in different regions, including a battery belt from Michigan to the southeast and a hydrogen and carbon capture belt along the Gulf Coast. However, wind investment has been declining over the past eight quarters. This investment growth is contributing to changing the economic geography of the country, with investments in lower-income communities and areas that have traditionally felt left behind in prior economic expansions. Overall, the data underscores the need for a national economic strategy that leverages public investment and other policy tools to drive private investment in areas where the private sector is less likely to invest on its own.