Global energy investment is anticipated to reach $3.3tn, according to a June 2025 report from the International Energy Agency. This surge is driven by clean energy technologies, attracting twice the capital of fossil fuels, amid economic uncertainties and energy security concerns.
Investment in clean technologies, including renewables, nuclear, grids, storage, low-emission fuels, efficiency and electrification, is expected to hit $2.2tn in 2025. This reflects efforts to reduce emissions, industrial policy influence, energy security concerns, and the cost competitiveness of electricity-based solutions. Meanwhile, investment in oil, natural gas and coal is projected to reach $1.1tn.
The IEA’s World Energy Investment report, now in its tenth edition, provides a comprehensive assessment of the current investment landscape across fuels, technologies and regions. It highlights major changes over the past decade and the impact of geopolitical and economic uncertainties on energy investment.
IEA executive director Fatih Birol stated: “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.”
China has emerged as the largest energy investor globally, spending twice as much as the EU and nearly as much as the EU and US combined. Over the past decade, China’s share of global clean energy spending has risen from a quarter to almost a third.
Investment trends indicate a shift towards an “age of electricity”. In 2015, fossil fuel investments were 30% higher than those in electricity generation, grids and storage. In 2025, electricity investments are set to be 50% higher than fossil fuel investments.
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By GlobalDataGlobal spending on low-emission power generation has almost doubled since 2020, led by solar photovoltaic. Solar investment is expected to reach $450bn in 2025, making it the largest item in global energy investment. Battery storage investments are also rapidly increasing, exceeding $65bn in the same year.
Nuclear power capital flows have grown 50% in five years and are projected to reach $75bn in 2025. Rising electricity demand supports continued coal supply investment, mainly in China and India. In 2024, China began constructing almost 100GW of new coal-fired power plants.
Investment in grids, now at $400bn annually, lags behind generation and electrification spending. Ensuring electricity security requires grid investment to match generation spending by the early 2030s, but challenges such as permitting procedures and supply chain constraints hinder progress.
Lower oil prices and demand expectations are expected to result in a 6% drop in upstream oil investment, the first decline since the Covid slump in 2020. Conversely, investment in new liquefied natural gas facilities is on the rise, with significant capacity growth expected between 2026 and 2028.
Spending patterns remain uneven globally, with many developing economies, particularly in Africa, struggling to mobilise capital for energy infrastructure. Africa accounts for only 2% of global clean energy investment, despite being home to 20% of the world’s population.
The report also suggests scaling up international public finance to attract private capital in these regions.
