Global energy investment is projected to hit a record US$3.3 trillion in 2025, with clean energy technologies attracting more than double the capital flowing into fossil fuels, according to a new report from the International Energy Agency (IEA).
The IEA’s World Energy Investment 2025 report reveals that investment in clean technologies—including renewables, nuclear power, grid infrastructure, energy storage, low-emissions fuels, and electrification—is set to reach an unprecedented US$2.2 trillion this year. This surge reflects growing momentum toward decarbonisation despite ongoing geopolitical tensions and economic uncertainty.
Solar energy continues to lead the charge. Combined investment in utility-scale and rooftop solar is expected to reach US$450 billion, making it the largest single item in the global energy portfolio for 2025. Battery storage is also gaining ground rapidly, with investment expected to exceed US$65 billion.
In contrast, the fossil fuel sector is seeing a slowdown. The report forecasts a 6% drop in upstream oil investment—the first year-on-year decline since 2020—driven by lower oil prices and tempered demand expectations.
The IEA’s findings highlight a pivotal shift in global energy priorities, as nations and investors increasingly back technologies that align with long-term sustainability goals.
News Source: Emirates News Agency
