Global investment in energy is on track to hit an all-time high of $3.3 trillion in 2025, according to the International Energy Agency’s (IEA) latest World Energy Investment report, despite ongoing geopolitical tensions and economic uncertainty. For the first time, capital flowing into clean energy technologies is set to double the amount spent on fossil fuels, marking a significant shift in global energy priorities.
Spending on renewables, nuclear, electricity grids, battery storage, low-emissions fuels, energy efficiency, and electrification is expected to total $2.2 trillion this year, the IEA says. This record-breaking level reflects not only climate goals but also national strategies aimed at bolstering energy security, leveraging industrial policy, and benefiting from the rising cost competitiveness of electric technologies.
In contrast, investment in oil, gas, and coal is projected to reach $1.1 trillion, maintaining a substantial share but falling behind the pace of clean energy spending.
“Energy security is clearly emerging as a central force driving global investment in 2025,” said IEA Executive Director Fatih Birol. “Even as some investors adopt a cautious approach to new project approvals amid uncertain economic and trade conditions, most existing projects are progressing as planned.”
The report provides a sweeping view of global energy finance trends across technologies, sectors, and regions, while also reflecting on how the investment landscape has evolved over the past decade.
China’s Energy Investment Now Outpaces EU and U.S. Combined
When the IEA published its first World Energy Investment report in 2015, China had just overtaken the United States in energy investment. Today, it leads by a wide margin investing nearly as much as the EU and U.S. combined, and twice as much as the EU alone.
Over the last ten years, China’s share of global clean energy investment has grown from 25% to nearly one-third, driven by large-scale spending on solar, wind, hydropower, nuclear, EVs, and battery technology. Meanwhile, global investment in oil and gas exploration is increasingly concentrated in the Middle East.
Fossil Fuel vs. Electricity: A Reversal of Fortunes
The global energy system is increasingly defined by electricity-based solutions. A decade ago, investment in fossil fuel supply was 30% higher than spending on electricity infrastructure. In 2025, electricity-related investments including power generation, grids, and storage are projected to be 50% higher than total fossil fuel investments.
Key drivers of electricity spending include:
- Solar PV, now the world’s largest energy investment category, is expected to attract $450 billion in 2025.
- Battery storage is rapidly scaling, with global investment exceeding $65 billion this year.
- Nuclear power spending has grown 50% since 2020, reaching an estimated $75 billion.
However, despite record growth in power generation, grid infrastructure remains a weak link. Annual investment in electricity grids stands at about $400 billion, but the IEA warns that this is not enough to support the rising demand for electricity. For electricity systems to remain secure, grid investment must reach parity with power generation by the early 2030s. Challenges such as slow permitting processes and supply chain constraints particularly for transformers and cables are hampering progress.
Fossil Fuel Trends: Coal Resurgence, Oil Decline, LNG Boom
One of the more surprising developments is a resurgence in coal, driven by China and India. In 2024 alone, China began construction on nearly 100 GW of new coal-fired capacity the highest level of new coal plant approvals since 2015.
Meanwhile, the oil sector faces a slowdown. For the first time since the COVID-19-induced downturn of 2020, upstream oil investment is set to fall year-on-year, with a 6% drop driven largely by reduced spending on U.S. tight oil. On the other hand, investment in liquefied natural gas (LNG) infrastructure is booming, with new projects in Qatar, the U.S., Canada, and others expected to drive the largest global LNG capacity expansion in history between 2026 and 2028.
Global Inequities: Africa’s Energy Investment Crisis
The report also highlights a widening investment gap between developed and developing economies. Despite accounting for 20% of the global population, Africa receives just 2% of global clean energy investment. Total energy investment across the continent has declined by one-third over the past decade, largely due to falling fossil fuel spending and insufficient progress in clean energy.
The IEA urges a major increase in public financing to unlock private capital flows in Africa and other emerging markets. Without targeted support, many developing countries risk being left behind in the global clean energy transition.
Interactive Data for Deeper Insights
The 2025 report introduces a new interactive data explorer, enabling users to compare energy investment patterns across sectors, technologies, and regions between the periods 2016–2020 and 2021–2025. The tool provides granular insights into spending by 19 individual countries and major world regions.
