BloombergNEF’s latest Energy Transition Investment Trends report shows that global investment in the energy transition reached a record $2.3 trillion in 2025, an 8 percent increase from 2024. Electrified transport led with $893 billion of investment, followed by renewable energy at $690 billion and grid infrastructure at $483 billion. Renewable energy investment fell 9.5 percent year-on-year, primarily due to regulatory changes in China, while hydrogen and nuclear saw modest declines, at $7.3 billion and $36 billion respectively.
Clean energy supply investment outpaced fossil fuel supply for the second consecutive year, with the gap widening to $102 billion from $85 billion in 2024. Fossil fuel supply investment fell by $9 billion, driven by reduced spending on upstream oil and gas and fossil power generation, partly offset by higher gas and coal investment. Despite these record levels, energy transition growth has moderated from 27 percent in 2021 to 8 percent in 2025.
Regionally, Asia Pacific remained dominant with 47 percent of total investment. China led all countries with $800 billion, though renewables funding there dipped for the first time since 2013. The European Union grew 18 percent to $455 billion, contributing significantly to the global rise. India’s investment increased 15 percent to $68 billion, and U.S. spending rose 3.5 percent to $378 billion despite policy headwinds.
Clean energy supply chain investment—including factories for solar panels, batteries, electrolyzers and wind turbines, plus battery metal mines and processing facilities—increased 6 percent to $127 billion. Battery manufacturing and materials led this growth. Private and public equity raised by climate-tech companies jumped 53 percent to $77.3 billion, driven by deals in clean power, energy storage and low-carbon transport. Mergers and acquisitions reached $99.1 billion, up 37 percent. Energy transition debt issuance also climbed 17 percent to $1.2 trillion, thanks to stronger corporate and project financing.
BloombergNEF projects that under its base-case scenario, annual energy transition investment will average $2.9 trillion over the next five years, driven by continued electrification, energy security concerns and data center expansion.
Source: BloombergNEF insights
