According to the International Energy Agency (IEA), global energy investments are projected to reach an unprecedented $3.3 trillion by 2025, fueled primarily by heightened clean energy spending.
The latest IEA report highlights that investments in clean technology, such as renewables, nuclear energy, electricity grids, storage, low-emission fuels, efficiency improvements, and electrification, are expected to total a record $2.2 trillion this year. This surge reflects not only environmental targets but also energy security needs and the increasing cost-effectiveness of electricity-based solutions. Meanwhile, investment in oil, natural gas, and coal is anticipated to reach $1.1 trillion.
Insights from the World Energy Investment Report
In its tenth iteration, the World Energy Investment report delves into significant changes in the energy investment landscape, impacted by varying geopolitical and economic challenges.
"Amid the geopolitical and economic uncertainties that are clouding the outlook for the energy world, we see energy security coming through as a key driver of the growth in global investment this year to a record $3.3 trillion as countries and companies seek to insulate themselves from a wide range of risks," commented IEA Executive Director Fatih Birol. Despite evolving economic conditions, many investors remain committed to existing projects, although some have taken a cautious approach to approving new initiatives.
The Rise of Global Clean Energy Spending
China's influence in the global clean energy market has grown remarkably, now accounting for nearly a third of worldwide spending.
Dr. Birol noted, "When the IEA published the first ever edition of its World Energy Investment report nearly ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United States. Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union—and almost as much as the EU and United States combined." China's investments span solar, wind, hydropower, nuclear, batteries, and electric vehicles, while global oil and gas investment is increasingly focused in the Middle East.
Current Investment Trends
Fossil fuel investments surpassed those in electricity generation by 30%
Recent investment trends highlight the progression towards an 'Age of Electricity.' Historically, fossil fuel investments surpassed those in electricity generation by 30%.
However, by 2025, investments in electricity are projected to be 50% higher than those in oil, natural gas, and coal. Globally, spending on low-emission power generation has surged, notably in solar photovoltaics (PV), with investments slated to reach $450 billion, making it a leading investment category. Battery storage investments are climbing as well, expected to surpass $65 billion this year.
Nuclear Energy Developments
Nuclear energy investment has increased by 50% over the past five years, projected to reach around $75 billion. This growth is driven by rising electricity demand, maintaining coal supplies predominantly in China and India.
Despite these advancements, investment in infrastructure such as grids has not kept pace, highlighting the need for increased spending to ensure electricity security. Grid investment, currently at $400 billion annually, struggles due to regulatory hurdles and supply chain limitations.
Shifts in Oil Investments
The global LNG market is predicted to see significant capacity expansions between 2026 and 2028
The report anticipates a 6% decline in upstream oil investment, spurred by reduced spending on US tight oil.
However, investments in liquefied natural gas (LNG) facilities are on the rise, driven by new projects in the US, Qatar, and Canada. The global LNG market is predicted to see significant capacity expansions between 2026 and 2028.
Spending Discrepancies
Energy investment patterns remain uneven globally, with many developing regions, particularly Africa, facing challenges in capital mobilization for energy infrastructure. Africa's share of global clean energy investment is a mere 2%, despite accounting for 20% of the world's population. To address this disparity, the report suggests increasing international public financing to attract private investment, especially in emerging economies.
Interactive Data Explorer
This year's World Energy Investment report includes an interactive tool for analyzing energy investments across sectors and technologies from 2016 to 2025, offering insights into global trends as well as data for 19 specific countries and regions.
Global energy investment is set to increase in 2025 to a record $3.3 trillion despite headwinds from elevated geopolitical tensions and economic uncertainty, a new IEA report says, with clean energy technologies attracting twice as much capital as fossil fuels.
Investment in clean technologies – renewables, nuclear, grids, storage, low-emissions fuels, efficiency and electrification – is on course to hit a record $2.2 trillion this year, reflecting not only efforts to reduce emissions but also the growing influence of industrial policy, energy security concerns and the cost competitiveness of electricity-based solutions, according to the 2025 edition of the IEA’s annual World Energy Investment report. Investment in oil, natural gas, and coal is set to reach $1.1 trillion.
World Energy Investment report
In addition to a comprehensive assessment of the current investment landscape across fuels, technologies and regions, this 10th edition of the World Energy Investment report explores some of the major changes over the past decade.
“Amid the geopolitical and economic uncertainties that are clouding the outlook for the energy world, we see energy security coming through as a key driver of the growth in global investment this year to a record $3.3 trillion as countries and companies seek to insulate themselves from a wide range of risks,” said IEA Executive Director Fatih Birol.
“The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas, we have yet to see significant implications for existing projects.”
Global clean energy spending
China’s share of global clean energy spending has risen from a quarter to almost a third
“When the IEA published the first ever edition of its World Energy Investment report nearly ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United States,” Dr Birol added.
“Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union – and almost as much as the EU and United States combined.”
Over the past decade, China’s share of global clean energy spending has risen from a quarter to almost a third, underpinned by strategic investments in a wide range of technologies, including solar, wind, hydropower, nuclear, batteries and EVs. At the same time, global spending on upstream oil and gas is gravitating towards the Middle East.
Current investment trends
Current investment trends clearly show a new Age of Electricity is drawing nearer. A decade ago, investments in fossil fuels were 30% higher than those in electricity generation, grids and storage.
This year, electricity investments are set to be some 50% higher than the total amount being spent bringing oil, natural gas and coal to market.
Globally, spending on low-emissions power generation has almost doubled over the past five years, led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in 2025, making it the single largest item in the global energy investment inventory. Battery storage investments are also climbing rapidly, surging above $65 billion this year.
Nuclear power
Capital flows to nuclear power have grown by 50% over the past five years
Capital flows to nuclear power have grown by 50% over the past five years and are on course to reach around $75 billion in 2025. Rapid growth in electricity demand also underpins continued investment in coal supply, mainly in China and India.
In 2024, China started construction on nearly 100 gigawatts of new coal-fired power plants, pushing global approvals of coal-fired plants to their highest level since 2015. In a worrying sign for electricity security, investment in grids, now at $400 billion per year, is failing to keep pace with spending on generation and electrification.
Maintaining electricity security would require investment in grids to rise towards parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables.
Fall in upstream oil investment
The expected 6% drop is driven mainly by a sharp decline in spending on US tight oil
Lower oil prices and demand expectations are set to result in the first year-on-year fall in upstream oil investment since the Covid slump in 2020, according to the report.
The expected 6% drop is driven mainly by a sharp decline in spending on US tight oil. By contrast, investment in new liquefied natural gas (LNG) facilities is on a strong upward trajectory as new projects in the United States, Qatar, Canada, and elsewhere prepare to come online. Between 2026 and 2028, the global LNG market is set to experience its largest-ever capacity growth.
Spending patterns
Spending patterns remain very uneven globally – with many developing economies, especially in Africa, struggling to mobilize capital for energy infrastructure, the report finds.
Presently, Africa accounts for just 2% of global clean energy investment. Despite being home to 20% of the world’s population and rapidly growing energy demand, total investment across the continent has fallen by a third over the past decade due to declining fossil fuel spending and insufficient growth in clean energy.
To close the financing gap in African countries and other emerging and developing economies, international public finance needs to be scaled up and used strategically to bring in larger volumes of private capital, according to the report.
Interactive data explorer
This year’s edition of the World Energy Investment report features an interactive data explorer that enables users to compare energy investments across multiple sectors, fuels and technologies between the periods 2016–2020 and 2021–2025, covering global trends as well as data for 19 individual countries and regions.
