Source:
International Energy Agency (IEA) News, June 5, 2025.
The International Energy Agency (IEA) forecasts that global energy investment will reach an unprecedented $3.3 trillion in 2025, driven by an accelerated push toward cleaner technologies. Of this total, $2.2 trillion will be allocated to clean energy—covering renewables, energy storage, grid modernization, electrification
and efficiency measures—while fossil fuel investments will account for just over $1.1 trillion. This represents a doubling of clean energy spending compared to fossil fuels, reflecting a decisive shift in capital flows toward low-carbon systems.
According to the IEA, the surge is being fueled by a combination of national energy transition targets, corporate decarbonization commitments, and heightened concerns over energy security in the wake of geopolitical tensions. Solar power, battery storage, and electric mobility infrastructure are among the fastest-growing investment areas. At the same time, grid upgrades are absorbing record levels of capital to accommodate a higher share of variable renewable energy. The agency cautions, however, that while investment is strong in developed and major emerging economies, many low-income countries are still struggling to attract financing, risking an uneven global transition.
This milestone matters because energy infrastructure decisions made today will define the world’s economic, environmental, and geopolitical landscape for decades. Record investment levels signal that markets and policymakers increasingly view clean energy not as a niche sector but as the backbone of future growth and resilience. The scale and direction of this capital reallocation can accelerate technological breakthroughs, lower costs for consumers, and reduce vulnerability to fossil fuel price shocks—while also shaping competitive advantages for countries and companies that position themselves early in the race toward a low-carbon economy.