Global energy investment set to rise to $3.3 trillion in 2025: IEA
Satyendra Pathak
Doha
Global energy investment is projected to reach a record $3.3 trillion in 2025, with clean energy technologies attracting twice as much capital as fossil fuels, according to the International Energy Agency (IEA). This surge is driven by strong economic fundamentals, declining technology costs, and energy security considerations, despite ongoing geopolitical tensions and economic uncertainties
Global investment in clean energy technologies—including renewables, nuclear, power grids, energy storage, low-emissions fuels, energy efficiency, and electrification—is projected to reach a record $2.2 trillion in 2025, according to the latest edition of the IEA's World Energy Investmentreport.
This surge not only underscores efforts to reduce carbon emissions but also highlights the growing impact of industrial policies, heightened energy security concerns, and the increasing cost competitiveness of electricity-based solutions. In contrast, investment in oil, natural gas, and coal is expected to total $1.1 trillion, reflecting a continued but comparatively limited capital flow into fossil fuels.
In addition to offering a comprehensive analysis of current investment trends across various fuels, technologies, and regions, the 10th edition of the World Energy Investment report also reflects on key shifts over the past decade.
'Amid the geopolitical and economic uncertainties clouding the global energy outlook, energy security has emerged as a major driver of the record $3.3 trillion in global investment this year, as countries and companies work to shield themselves from a broad spectrum of risks,' said IEA Executive Director Fatih Birol. 'While the rapidly changing economic and trade environment is prompting some investors to delay approvals for new energy projects, most existing projects remain largelyunaffected.'
'When the IEA published the first ever edition of its World Energy Investment report nearly ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United States,' Birol added.
'Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union – and almost as much as the EU and United Statescombined.'
Over the past decade, China's share of global clean energy spending has risen from a quarter to almost a third, underpinned by strategic investments in a wide range of technologies, including solar, wind, hydropower, nuclear, batteries and EVs. At the same time, global spending on upstream oil and gas is gravitatingtowards the Middle East.
Today's investment trends clearly show a new Age of Electricity is drawing nearer. A decade ago, investments in fossil fuels were 30 percent higher than those in electricity generation, grids and storage. This year, electricity investments are set to be some 50 percent higher than the total amount being spent bringing oil, natural gas and coal to market.
Globally, spending on low-emissions power generation has almost doubled over the past five years, led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in 2025, making it the single largest item in the global energy investment inventory. Battery storage investments are also climbing rapidly, surging above $65 billion this year.
Capital flows to nuclear power have grown by 50 percent over the past five years and are on course to reach around $75 billion in 2025. Rapid growth in electricity demand also underpins continued investment in coal supply, mainly in China and India. In 2024, China started construction on nearly 100 gigawatts of new coal-fired power plants, pushing global approvals of coal-fired plants to their highest level since 2015.
In a worrying sign for electricity security, investment in grids, now at $400 billion per year, is failing to keep pace with spending on generation and electrification. Maintaining electricity security would require investment in grids to rise towards parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables.
Lower oil prices and demand expectations are set to result in the first year-on-year fall in upstream oil investment since the Covid slump in 2020, according to the report. The expected 6% drop is driven mainly by a sharp decline in spending on US tight oil. By contrast, investment in new liquefied natural gas (LNG) facilities is on a strong upward trajectory as new projects in the United States, Qatar, Canada and elsewhere prepare to come online. Between 2026 and 2028, the global LNG market is set to experience its largest ever capacity growth.
Spending patterns remain very uneven globally – with many developing economies, especially in Africa, struggling to mobilise capital for energy infrastructure, the report finds. Today, Africa accounts for just 2 percent of global clean energy investment. Despite being home to 20 percent of the world's population and rapidly growing energy demand, total investment across the continent has fallen by a third over the past decade due to declining fossil fuel spending and insufficient growth in clean energy.
To close the financing gap in African countries and other emerging and developing economies, international public finance needs to be scaled up and used strategically to bring in larger volumes of private capital, according to the report.
This year's edition of the World Energy Investment report features an interactive data explorer that enables users to compare energy investments across multiple sectors, fuels and technologies between the periods 2016–2020 and 2021–2025, covering global trends as well as data for 19 individual countries and regions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Qatar Tribune
2 days ago
- Qatar Tribune
Global energy investment set to rise to $3.3 trillion in 2025: IEA
Satyendra Pathak Doha Global energy investment is projected to reach a record $3.3 trillion in 2025, with clean energy technologies attracting twice as much capital as fossil fuels, according to the International Energy Agency (IEA). This surge is driven by strong economic fundamentals, declining technology costs, and energy security considerations, despite ongoing geopolitical tensions and economic uncertainties Global investment in clean energy technologies—including renewables, nuclear, power grids, energy storage, low-emissions fuels, energy efficiency, and electrification—is projected to reach a record $2.2 trillion in 2025, according to the latest edition of the IEA's World Energy Investmentreport. This surge not only underscores efforts to reduce carbon emissions but also highlights the growing impact of industrial policies, heightened energy security concerns, and the increasing cost competitiveness of electricity-based solutions. In contrast, investment in oil, natural gas, and coal is expected to total $1.1 trillion, reflecting a continued but comparatively limited capital flow into fossil fuels. In addition to offering a comprehensive analysis of current investment trends across various fuels, technologies, and regions, the 10th edition of the World Energy Investment report also reflects on key shifts over the past decade. 'Amid the geopolitical and economic uncertainties clouding the global energy outlook, energy security has emerged as a major driver of the record $3.3 trillion in global investment this year, as countries and companies work to shield themselves from a broad spectrum of risks,' said IEA Executive Director Fatih Birol. 'While the rapidly changing economic and trade environment is prompting some investors to delay approvals for new energy projects, most existing projects remain largelyunaffected.' 'When the IEA published the first ever edition of its World Energy Investment report nearly ten years ago, it showed energy investment in China in 2015 just edging ahead of that of the United States,' Birol added. 'Today, China is by far the largest energy investor globally, spending twice as much on energy as the European Union – and almost as much as the EU and United Statescombined.' Over the past decade, China's share of global clean energy spending has risen from a quarter to almost a third, underpinned by strategic investments in a wide range of technologies, including solar, wind, hydropower, nuclear, batteries and EVs. At the same time, global spending on upstream oil and gas is gravitatingtowards the Middle East. Today's investment trends clearly show a new Age of Electricity is drawing nearer. A decade ago, investments in fossil fuels were 30 percent higher than those in electricity generation, grids and storage. This year, electricity investments are set to be some 50 percent higher than the total amount being spent bringing oil, natural gas and coal to market. Globally, spending on low-emissions power generation has almost doubled over the past five years, led by solar PV. Investment in solar, both utility-scale and rooftop, is expected to reach $450 billion in 2025, making it the single largest item in the global energy investment inventory. Battery storage investments are also climbing rapidly, surging above $65 billion this year. Capital flows to nuclear power have grown by 50 percent over the past five years and are on course to reach around $75 billion in 2025. Rapid growth in electricity demand also underpins continued investment in coal supply, mainly in China and India. In 2024, China started construction on nearly 100 gigawatts of new coal-fired power plants, pushing global approvals of coal-fired plants to their highest level since 2015. In a worrying sign for electricity security, investment in grids, now at $400 billion per year, is failing to keep pace with spending on generation and electrification. Maintaining electricity security would require investment in grids to rise towards parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables. Lower oil prices and demand expectations are set to result in the first year-on-year fall in upstream oil investment since the Covid slump in 2020, according to the report. The expected 6% drop is driven mainly by a sharp decline in spending on US tight oil. By contrast, investment in new liquefied natural gas (LNG) facilities is on a strong upward trajectory as new projects in the United States, Qatar, Canada and elsewhere prepare to come online. Between 2026 and 2028, the global LNG market is set to experience its largest ever capacity growth. Spending patterns remain very uneven globally – with many developing economies, especially in Africa, struggling to mobilise capital for energy infrastructure, the report finds. Today, Africa accounts for just 2 percent of global clean energy investment. Despite being home to 20 percent of the world's population and rapidly growing energy demand, total investment across the continent has fallen by a third over the past decade due to declining fossil fuel spending and insufficient growth in clean energy. To close the financing gap in African countries and other emerging and developing economies, international public finance needs to be scaled up and used strategically to bring in larger volumes of private capital, according to the report. This year's edition of the World Energy Investment report features an interactive data explorer that enables users to compare energy investments across multiple sectors, fuels and technologies between the periods 2016–2020 and 2021–2025, covering global trends as well as data for 19 individual countries and regions.
Qatar Tribune
2 days ago
- Qatar Tribune
Bulgarians divided on euro
Agencies Igor Ruge, a hotel manager at a ski resort in southern Bulgaria, welcomed news on Wednesday that the European Commission had given his country the green light to join the euro zone next year. The approval could mean more foreign tourists and investment for the EU's poorest country. 'It will be much easier for everyone within the euro zone to understand our value ... and to understand that Bulgaria is one of the most attractive countries for winter and summer vacation,' said Ruge, who runs two hotels in the town of Bansko. Bulgaria, a Balkan country bordering the Black Sea, joined the European Union in 2007. It will become the 21st country to adopt the euro on January 1, 2026. The change will ease trade flows and give it a seat on the European Central Bank's rate-setting Governing Council. Despite the expected gains, however, many in Bulgaria are sceptical. Widespread corruption, stark income inequality and a four-year political crisis marked by a series of snap elections and weak coalitions has eroded trust in authorities. Many fear a rise in prices during the switch, as had occurred in other countries that joined over the past decade. A Eurobarometer poll published last month by the European Commission indicated that 50 percent of Bulgarians did not support the common currency, up from 46 percent in November. 'When you don't trust the institutions in the country, it is much harder to make any transition ... especially when it comes to joining the euro,' Petar Ganev, senior research fellow at Bulgaria's Institute for Market Economics, told Reuters. The government's message is upbeat. Finance minister Temenuzhka Petkova said last week said the euro would bring more investment and stability to Bulgaria. She said the government will launch a campaign this week to reassure citizens. 'One of the biggest challenges is how to combat fake news,' she told a forum last week. Already everyday goods in shops are listed in euros as well as the Bulgarian lev currency to get people used to the conversion. Still, vocal political opposition remains. Thousands attended a protest organised by the far-right Revival Party outside parliament in the capital Sofia on Wednesday in which demonstrators waved Bulgarian flags and chanted 'no to Euro colonialism'. With an average monthly salary of 2,443 leva ($1,420.76), Bulgaria is the poorest country in the European Union. Populations in rural areas outside Sofia will be most vulnerable to inflation. Nikola Ragev, a 75-year-old pensioner, was selling vegetables in the town of Pernik, some 20 kilometers west of Sofia on Tuesday. He was worried that the euro would further impoverish the country.
Qatar Tribune
3 days ago
- Qatar Tribune
US doubles steel, aluminium tariffs as new 50% rates take effect
Agencies Asteep hike in US import tariffs on steel and aluminium took effect on Wednesday, after US President Donald Trump ordered the tariff rate to be doubled to 50 percent. The tariffs, which took effect at 04:01 am GMT, doubled from 25 percent to 50 percent of the goods' value as Trump seeks to correct alleged trade imbalances and strengthen domestic industry in the United States. Steel and aluminium imports from the United Kingdom are exempt and will remain subject to the existing 25 percent tariff, the White House said. This is based on a trade agreement recently concluded between Washington and London. The measure is likely to make it more difficult to import the products in question and lead to higher prices. In 2024, the US was the world's largest steel importer after the European Union. According to the US government, the most important countries of origin are Canada, Brazil and Mexico. Germany is also among the 10 largest exporters to the USA ccording to the German Steel Industry Association, the US is the most important sales market for the European steel United States sources aluminum primarily from Canada, the United Arab Emirates (UAE), China and South Korea. Trump has alreadyannounced, threatened, or implemented numerous other tariffs with the stated aim of securing better trade agreements.
