With the recent surge in global temperatures, the effects of climate change are becoming harder to ignore.
But, fortunately, temperatures aren’t the only thing on the rise. Clean energy investment is climbing too, offering a much-needed path toward meeting the 1.5°C climate target.
Clean Energy vs. Fossil Fuels: Clean Energy Takes the Lead
Ten years ago, fossil fuel investments were 30% higher than those in clean energy.
Today, that trend has reversed.
By the end of 2025, electricity investments are set to be 50% higher than fossil fuels, marking a major step toward what the IEA calls the “Age of Electricity.”
Global energy investment is projected to reach $3.3 trillion USD this year (up 2% from the previous year), with $2.2 trillion USD dedicated specifically to clean energy projects – twice the amount invested in fossil fuels. And while clean energy investments made up only 44% of the total global energy investments in 2015, they account for around 67% today, reflecting a fundamental change in how the world approaches energy development.
The electricity sector serves as a strong example of this shift. Electricity investments are expected to reach $1.5 trillion USD in 2025 – 50% higher than the $1.1 trillion USD projected for coal, gas, and oil combined.
The general momentum for clean energy investments has accelerated dramatically over the past five years. Low-emissions generation investments have nearly doubled, with solar photovoltaic technology (solar PV) leading the charge at $450 billion USD. Nuclear power has also experienced a renaissance, with spending increasing 50% over five years. Investments in new nuclear plants and facility refurbishments are expected to exceed $70 billion USD.
Clean Energy Investment Reflects a Global Mission
Clean energy investment is growing across the world.
China remains the leading investor in global clean energy, followed by Europe and the US. While some regions like Russia have seen a dip in investment within the last ten years, as a whole, global clean energy investment has grown an impressive 83% since 2015.
Challenges for Clean Energy Investment
While progress is being made, significant challenges remain.
Despite record investment levels, current trends fall short of the COP28 climate targets. In order to achieve these targets, we need to double renewable energy investment and triple expenditures on efficiency and electrification.
The IEA’s World Energy Investment 2025 report highlights several areas that need urgent attention in order to stay on track:
Investment remains uneven: Africa accounts for nearly 20% of the global population but receives just 2% of global clean energy investment, underscoring the need for more equitable financing.
Grid investment is falling behind demand: Roughly $400 billion USD is invested in power grids each year, compared to over $1 trillion USD for new generation. This gap is worsened by slow permitting, supply chain bottlenecks for transformers and cables, and the weak financial condition of many utilities.
Rising electricity security concerns are boosting coal approvals: In response to reliability risks, China and India have significantly increased coal power plant approvals, with China giving the go-ahead for almost 100 GW of new coal-fired plants in 2024 and India approving another 15 GW, pushing global coal approvals to their highest level since 2015.
Read the IEA’s full report on World Energy Investment 2025 here.
