(Oil & Gas 360) – The International Energy Administration (IEA) released its Government Energy Spending Tracker late last month detailing the nearly $3 trillion in global investment in decarbonization efforts.
The United States accounts for roughly one-sixth of that number with nearly $ 600 billion allocated across six categories (outlined below). The figure equates to an approximate federal spend on the effort of around $1,800 per U.S. citizen.
The biggest U.S. energy transition expenditure of $240 billion is for low carbon electricity which, aside from the IEA’s general low carbon power category, includes nuclear, solar and onshore and offshore wind.
Some $145 billion goes for low carbon and efficient transportation with approximately $66 billion allotted for high-speed rail with another $50 billion for urban transit. Electric vehicles and charging infrastructure combine alternative vehicles and fuels for about $30 billion.
A third category, fuels and technology innovation, gets $90 billion. Carbon capture is nearly $24 billion expenditure. Hydrogen and batteries collectively amount to $34 billion, with “other innovation” receiving $13 billion, a figure essentially matched by biofuels and thermal storage. Critical minerals are allocated about $5.5 billion.
Fourth, the energy efficient buildings and industry category include retrofits, heat pumps, appliances, and efficient building for a total of over $60 billion.
The country’s strained electrical transmission and grid are due $50 billion; $10 billion of that is for the grid.
The final category in the government spending tracker, people-centered (aka “just”) transitions is to get $17 billion.
The United States’ $594 billion is essentially twice that of China’s expenditure. Germany is second in energy transition spending at $466 billion, a figure roughly three times the per capita of the United States.
Germany is often cited as having the highest energy prices in the world.
In addition to tracking all government spending to increase levels of clean energy investment, the Government Energy Spending Tracker also includes consumer energy affordability measures. The Tracker cites the COVID outbreak and Russia’s invasion of Ukraine among the major causes of what it calls the global energy crisis.
A link to the EIA’s spending tracker is: Government Energy Spending Tracker: Policy Database – Data Tools – IEA
By Jim Felton for oilandgas360.com
