Retailers have emerged as unexpected leaders in green investments among different U.S. industries, contributing almost $33.6 billion in green technology or clean energy in Q2 of 2024.

A study by the Clean Investment Monitor by Rhodium Group and the Center for Energy and Environmental Policy Research at the Massachusetts Institute of Technology found that the retail sector in the U.S. has invested in green technologies more than the energy, industry, and manufacturing sectors.

Namely, in Q2 2024, retailers invested over $33.6 billion in eco-technologies, while the energy and industry sectors contributed about $23.5 billion, and manufacturing – $19.2 billion.

The publication has been analysing initiatives such as the production and adoption of electric vehicles (EVs), expansion of renewable energy infrastructure, advancements in carbon management, and developments in battery technology, energy storage systems, and heat pumps. Practices like that showcase corporate commitment to addressing climate change while meeting consumer demand for sustainable business practices.

The retail sector’s investments are largely directed toward electric vehicles (EVs) and other zero-emission options, offering a straightforward and practical way to clean energy adoption. In contrast, other industries often leverage costlier, customised solutions that can delay or complicate green investments.

Nevertheless, the manufacturing sector has seen a sharp increase in spending, driven by significant investments in U.S. battery production, which gained momentum at the end of 2022 and continues to grow. Due to this fact, manufacturing investments have quadrupled in the past two years compared to the two years before.

Compared to the manufacturing green investment surge, retail, energy, and industry investments have been rising slower but have remained more steady over the years. The industry maintained stable investment levels until the last two quarters when volumes declined. It was primarily driven by reduced spending on wind and solar projects, attributed to higher interest rates, supply chain disruptions, and challenges with siting and permitting.

Nevertheless, there still was increased investment in smaller subsectors like energy storage, clean hydrogen, and carbon management, indicating a shift in focus within the overall green energy landscape. This is true not only for the U.S. but for other countries as well. For instance, China today intends to make green hydrogen one of the pillars of its economy.

Green investment globally has seen tremendous growth over the last few years. It reached the levels of funding put into producing fossil fuels for the first time in 2022. The important milestone was enabled by dramatic growth in carbon capture investments.