Energy investments worldwide are projected to hit a record $3.3 trillion this year, propelled largely by a surge in spending on renewable energy sources such as wind and solar, according to the International Energy Agency’s (IEA) latest World Energy Investment report.
China is set to reaffirm its position as the leading global energy investor in 2025, the agency highlighted. Despite facing considerable headwinds—including subdued economic growth and geopolitical as well as trade uncertainties—energy investments continue to grow robustly.
The IEA emphasized that investment in non-hydrocarbon energy sectors will more than double the amount allocated to oil and gas projects this year. Clean energy investments, including nuclear power, grid modernization, energy storage, new fuel development, and efficiency measures, are forecast to total $2.2 trillion, underscoring the accelerating shift away from fossil fuels.
“Energy security has emerged as a pivotal factor driving global investment growth to a record $3.3 trillion,” said IEA Executive Director Fatih Birol. “Countries and companies are investing heavily to shield themselves from a broad spectrum of geopolitical and economic risks.”
While investments in wind, solar, and energy storage are on the rise, the IEA anticipates a 6% decline in oil and gas investment for 2025. This reduction is attributed to falling oil prices and weakening demand, with global oil consumption expected to shrink this year for the first time since the 2020 pandemic-related downturn.
Within the clean energy segment, solar power is poised to attract the largest share of investment, with $450 billion expected in 2025, making it the top destination for energy capital worldwide. Concurrently, spending on energy storage is predicted to increase significantly, reaching $65 billion as efforts to stabilize and optimize renewable energy integration intensify.
