Clean energy investment will account for 66% of global energy investment this year.

Global energy investment is projected to reach a record $3.3T in 2025, with clean energy making up more than $2.2T, according to the IEA. Despite geopolitical instability and economic uncertainty, total investment is expected to grow by 2% in real terms. The primary areas of green investment will include renewables, nuclear power, power grids, energy storage, low-carbon fuels, and energy efficiency. The key driver of the green transformation has been the increase in electricity demand.

This year, investment in the electricity sector will total $1.5T, with $450B earmarked for solar energy. Amid declining prices and uncertainty, investment in oil and gas is projected to drop by 4% to $570B. Oil production costs are anticipated to decrease by 6%. Investment in the coal industry will continue to grow, albeit at a slower pace of 4%, primarily in China and India. There is a noticeable regional imbalance, with China remaining the leader in clean energy investment while US investment is expected to stabilize due to reduced government support.