BAKU, Azerbaijan, June 5. Despite geopolitical tensions and economic headwinds, investment in the global energy sector is set to reach new heights next year, driven by the rapid growth of clean energy technologies, according to a new report by the International Energy Agency (IEA), Trend reports.
In its World Energy Investment 2025 report, the IEA projects total energy investment will climb to $3.3 trillion in 2025, marking a 2% increase in real terms from 2024.
More than two-thirds of this sum - roughly $2.2 trillion - is expected to flow into clean energy technologies, including renewables, nuclear, grid infrastructure, energy storage, low-emission fuels, and electrification. This is double the amount going to fossil fuels, which is projected at $1.1 trillion.
The data reflects a sustained shift in global energy investment trends, as countries diversify energy supplies, respond to industrial and technological shifts, and bolster energy security—often independently of direct climate policy mandates.
“The momentum behind clean energy investment continues, even in a complex and uncertain macroeconomic environment,” the IEA said, noting that investors are generally holding steady on existing projects, even as new approvals face delays due to market uncertainty.
According to the agency, about 70% of the recent increase in clean energy spending has come from net fossil fuel importers. China remains the largest single driver, investing heavily to reduce dependence on oil and gas imports while positioning itself at the forefront of new technology supply chains. Meanwhile, Europe has ramped up its investment in renewables and energy efficiency following the disruption of pipeline gas supplies from Russia.
India has also emerged as a major player, with a notable increase in solar energy investment. In the United States, around 20% of the global clean energy investment increase can be traced to policies designed to challenge China’s dominance in emerging clean tech sectors, particularly under the Inflation Reduction Act.
While emissions reductions are a powerful motivation, the IEA points out that many of these investments are now driven by broader economic and strategic factors. Technologies such as solar, wind, and batteries have reached levels of maturity and cost-competitiveness that make them attractive regardless of climate targets.
The report emphasizes that the energy transition is not being fueled by policy alone, but by a convergence of economic opportunity, security concerns, and industrial strategy.
Still, the IEA cautions that open questions about the global economic outlook and trade relations could temper the pace of future investment growth, especially if financing conditions tighten or supply chain disruptions persist.
