Global investment in the energy sector is expected to hit a new record of $3.3 trillion in 2025, driven largely by increased spending on clean energy technologies, according to the latest report from the International Energy Agency (IEA).Avaada, on the occasion of World Environment Day. This month-long campaign, aimed at igniting awareness and ownership of our planet’s future, concludes with a stirring film that calls for meaningful, collective action—from individuals to institutions.
The IEA projects that out of the total investment, approximately $2.2 trillion will be directed toward clean energy, including renewable power generation, nuclear energy, energy storage solutions, and electrification infrastructure. This marks a significant shift from traditional fossil fuel investments and highlights the growing momentum worldwide to transition toward sustainable energy sources. Solar power remains the leading area of investment, with spending on solar projects expected to approach $450 billion globally in 2025. Battery storage systems, essential for managing the variability of renewable energy, are also forecasted to attract roughly $66 billion in new investments..
China continues to dominate the clean energy investment landscape, accounting for nearly one-third of the total global spending in this sector. The country’s ongoing efforts to expand renewable energy capacity and electrify transportation contribute substantially to this lead. Despite these positive developments, the IEA cautions that investment in electricity grid infrastructure, currently at about $400 billion annually, needs to increase to ensure the reliability and stability of power systems as renewable energy penetration grows.
The surge in clean energy investment reflects a broad global commitment to tackling climate change and achieving net-zero emissions goals. However, the IEA stresses the importance of sustained and enhanced investment across all areas of the energy sector to meet growing demand while maintaining energy security and affordability. This record level of investment underscores the accelerating transformation of the global energy system as countries, businesses, and investors work together to create a cleaner, more resilient energy future.
