Clean Energy: Driver of Economic Growth and Global Innovation in 2023

Clean energy is taking on an increasingly prominent role in the global energy landscape, highlighting the emergence and development of a new sustainable economy based on renewable energy.

Throughout 2023, electricity from clean sources accounted for about 80% of the new capacities added to the global electricity system. At the same time, electric vehicles achieved a significant share of global sales, with one in five vehicles belonging to this category.

These figures underline a significant shift in consumer behavior and market trends.

Impact of Clean Energy on the Global Economy: Analysis and Prospects for 2023

Simultaneously, investments in the clean energy sector are essential for understanding the dynamics and potential of this expanding sector. The detailed analysis by the IEA revealed that in 2023, the clean energy sector added about $320 billion to the global economy.

This contribution represents 10% of the overall global GDP growth for the year, a figure comparable to the contribution of the aerospace industry or the equivalent of adding an economy the size of the Czech Republic.

The analysis was structured into three main categories:

The production of clean energy technologies;
The development of clean energy generation capacities;
The sale of sustainable equipment, such as electric cars and heat pumps.
The detailed results were presented for four of the world's major economies: the USA, EU, China, and India. These economies together represent two-thirds of the global GDP and provide a clear picture of the impact and potential of clean energy.

Clean Energy: USA, China, EU, and India in 2023

In particular, in the USA, clean energy contributed about 6% to GDP growth, driven by major legislative initiatives such as the Inflation Reduction Act and the Bipartisan Infrastructure Law. In China, clean energy accounted for one-fifth of GDP growth, which in turn saw a 5.2% increase in 2023.

The EU saw the highest share of clean energy contribution to GDP growth, almost one-third, thanks to overall more moderate growth. In India, clean energy contributed to nearly 5% of GDP growth, with a strong increase in investments, especially in solar capacity.

These figures not only demonstrate the rapid growth of the clean energy sector but also its consolidation as a significant economic force. As the energy transition continues, the importance of clean energy for global economies is set to increase.

Modernizing energy and industrial systems to support these transitions involves massive investments and the transformation of large markets. In addition to reducing greenhouse gas emissions and pollution, these changes offer numerous economic and social benefits.

Overall, the clean energy sector is driving a substantial part of investment growth in the analyzed economies, especially in China and the USA. In 2023, it is estimated that about $200 billion was invested in the production of clean energy technologies, marking a 75% increase compared to the previous year.

This growth underscores the importance of fully assessing the scale of the clean energy economy when designing energy, climate, and industrial policies.