Global energy investment is set to hit a record $3.3 trillion in 2025 despite headwinds from elevated geopolitical tensions and economic uncertainty, with clean energy technologies attracting twice as much capital as fossil fuels.
The International Energy Agency (IEA) projected that investment in clean technologies like renewables, nuclear, grids, storage, low-emission fuels, efficiency and electrification is on course to hit a record $2.2 trillion this year.
This projection reflected 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 billion.
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Fatih Birol, Executive Director of the IEA, said: “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.
“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.”
Meanwhile, the IEA also stated that China will cement its position as the top energy investor globally this year.
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.
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“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,” 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.”
Today’s investment trends have shown that a new Age of Electricity is drawing nearer. A decade ago, investments in fossil fuels were 30 percent higher than those in electricity generation, grids and storage. This year, electricity investments are set to be some 50 percent higher than the total amount being spent bringing oil, natural gas and coal to market.
