Investment in the global low-carbon energy transition reached a record $2.1 trillion in 2024, marking an 11% increase from the previous year, according to BloombergNEF’s (BNEF) Energy Transition Investment Trends 2025 report released on January 30, 2025. The growth was primarily driven by sectors such as electrified transport, renewable energy, power grids, and energy storage.
Electrified transport remained the leading investment area, attracting $757 billion in 2024. This investment encompasses passenger electric vehicles (EVs), electric two- and three-wheelers, commercial electric vehicles, public charging infrastructure, and fuel cell vehicles. Renewable energy investments totaled $728 billion, covering wind (both onshore and offshore), solar, biofuels, biomass and waste, marine, geothermal, and small hydro projects. Additionally, power grid investments reached $390 billion, which includes funding for transmission and distribution lines, substation equipment, and grid digitalization initiatives.
The report highlights a significant disparity between investments in mature and emerging clean energy technologies. Established technologies such as renewables, energy storage, electric vehicles, and power grids received the majority of investments, totaling $1.93 trillion and growing by 14.7%. In contrast, emerging technologies like electrified heating, hydrogen, carbon capture and storage (CCS), nuclear, clean industry, and clean shipping saw a decline in investment, totaling $155 billion—a 23% decrease year-on-year. Challenges such as affordability, technology maturity, and commercial scalability are hindering investment in these emerging sectors. BNEF emphasizes the need for increased support from both public and private sectors to mitigate risks and scale these technologies effectively.
Mainland China led global investment with $818 billion, representing a 20% increase from 2023 and accounting for two-thirds of the total global investment growth. In comparison, investment in the United States remained steady at $338 billion, while the European Union and the United Kingdom saw investments of $381 billion and $65.3 billion, respectively. India and Canada also contributed to global growth with investments increasing by 13% and 19%.
BNEF’s report indicates that to achieve global net-zero emissions by 2050, annual energy transition investments must average $5.6 trillion from 2025 to 2030. Currently, investments are only covering approximately 37% of the required amount. The investment gap varies by region and technology, with China being the closest to meeting the necessary targets, followed by Germany and the United Kingdom.
In addition to direct energy transition investments, BNEF tracks the clean energy supply chain, noting a slight decrease to $140 billion in 2024, with expectations to rise to $164 billion in 2025. The majority of this investment was directed towards battery production, which remains capital-intensive.
Source: BloombergNEF