Global energy investment is projected to hit an all-time high of $3.3 trillion in 2025, despite heightened geopolitical tensions and economic uncertainty, according to the International Energy Agency’s (IEA) latest World Energy Investment report. The 10th edition of the annual report reveals that clean energy technologies will attract nearly twice as much capital as fossil fuels, signaling a major shift in global energy priorities.
Clean energy investment—which includes renewables, nuclear, grids, storage, low-emissions fuels, efficiency, and electrification—is set to surge to a record $2.2 trillion this year. This growth is driven by the dual imperatives of decarbonization and energy security, along with favorable industrial policies and the falling costs of clean electricity solutions.
In contrast, investment in fossil fuels—covering oil, natural gas, and coal—is expected to total $1.1 trillion in 2025.
“Amid the geopolitical and economic uncertainties clouding the energy outlook, energy security has emerged as a key driver of investment growth,” said IEA Executive Director Fatih Birol. “While some investors are cautious with new project approvals, we’re not yet seeing major delays to existing initiatives.”
Birol also highlighted China’s dominant role, noting that it now invests more in energy than the European Union and nearly as much as the EU and United States combined. China’s share of global clean energy investment has climbed from 25% a decade ago to nearly 33% today, backed by robust spending on solar, wind, nuclear, hydropower, batteries, and electric vehicles.
The report underscores a global pivot towards electricity. A decade ago, fossil fuel investments exceeded those in electricity infrastructure by 30%. Today, investments in electricity—generation, grids, and storage—are expected to be 50% higher than those in fossil fuels.
Solar power continues to lead the clean energy charge, with combined investments in utility-scale and rooftop solar expected to reach $450 billion in 2025, making it the single largest investment category. Battery storage is also gaining momentum, with spending expected to surpass $65 billion this year.
Other key findings from the report include:
- Nuclear Power: Investment has increased 50% over the past five years, projected to hit $75 billion in 2025.
- Coal: Despite the global clean energy push, coal investment remains robust—particularly in China and India. China alone began construction on nearly 100 gigawatts of new coal-fired capacity in 2024.
- Grids Lagging: Grid investments, at $400 billion annually, are not keeping pace with the rapid growth in generation and electrification. The report warns that without substantial increases, electricity security could be at risk.
- Fossil Fuel Divergence: Upstream oil investment is projected to decline by 6%—its first drop since the 2020 pandemic slump—mainly due to reduced U.S. shale activity.
Conversely, investment in liquefied natural gas (LNG) is surging, with new projects in the U.S., Qatar, and Canada set to drive record capacity growth between 2026 and 2028.
The report also highlights stark disparities in global investment patterns. Africa, home to 20% of the world’s population, accounts for just 2% of clean energy investment. Total energy investment on the continent has declined by a third over the past decade, primarily due to falling fossil fuel spending and insufficient clean energy development.
To close this gap, the IEA calls for scaled-up international public finance and better strategies to attract private capital into emerging and developing markets.
The 2025 World Energy Investment report offers a comprehensive view of the rapidly changing energy landscape, reflecting both the achievements of the past decade and the urgent priorities of the years ahead.
