Global investment in the energy transition rose 8 percent to a record US$2.3 trillion in 2025, according to data published by BloombergNEF (BNEF), underscoring continued momentum in the shift toward low-carbon technologies even as growth shows signs of slowing.
The figures, released in BNEF’s Energy Transition Investment Trends 2026 report, show that spending on clean energy, electrification and low-carbon infrastructure continued to outpace investment in fossil fuels, reinforcing structural changes in the global energy system.
Electric transport was the largest driver of growth. Investment in electric vehicle purchases and charging infrastructure reached US$893 billion in 2025, up 21 percent from a year earlier. BNEF said the increase reflected strong demand for battery electric vehicles across major markets, as well as continued expansion of charging networks.
Renewable energy ranked second, attracting US$690 billion in investment, largely supported by solar power. However, spending in the renewables segment declined by 9.5 percent year on year, marking a notable slowdown after years of steady growth. The decline was mainly driven by weaker investment in China following regulatory and market reforms introduced in 2025, the report said.
Investment in power grids rose sharply, reaching US$483 billion, up 17 percent from 2024. Grid spending has emerged as a critical component of the energy transition, as countries seek to expand and modernise transmission and distribution networks to accommodate rising shares of renewable power, electric vehicles and electrified heating.
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Other segments of the transition also recorded gains. Investment in energy storage reached $71 billion, reflecting the growing role of batteries in balancing power systems. Spending on electrification of thermal uses, including heat pumps and electric industrial processes, rose to $84 billion. Carbon capture and storage investment increased to $6.6 billion, though it remains small relative to other sectors.
By contrast, BNEF reported declines in investment in low-carbon hydrogen and nuclear power. Spending on hydrogen fell to US$7.3 billion in 2025, while nuclear investment dropped to US$36 billion, reflecting project delays, cost pressures and policy uncertainty in some markets.
From a regional perspective, China remained the world’s largest energy transition market, with investment of about US$800 billion in 2025. However, this marked the country’s first year-on-year decline since 2013, driven largely by slower renewable deployment and policy changes affecting clean energy investment.
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The European Union recorded the strongest growth among major regions, with investment rising 18 percent to US$455 billion. BNEF said EU spending was supported by continued policy backing for renewables, electric vehicles and grid infrastructure as member states pursue climate and energy security goals.
The United States posted more modest growth, with energy transition investment rising to $378 billion. While clean energy spending remains elevated following policy support under the Inflation Reduction Act, BNEF noted that higher interest rates and permitting constraints have weighed on some segments.
Despite the record total, BNEF warned that the pace of growth in energy transition investment is slowing. While spending now exceeds investment in fossil fuels globally, the current level remains below what is required to align with international climate targets, the report said.
Looking ahead, BloombergNEF expects investment momentum to pick up again over the 2026–2030 period. Average annual energy transition investment during that period is projected to be about 25 percent higher than in 2025, supported by falling technology costs, policy commitments and rising demand for electrification.
However, the outlook depends on stable regulatory frameworks, access to financing and continued efforts to address infrastructure bottlenecks, particularly in power grids and supply chains. BNEF said accelerating investment in these areas will be critical to sustaining the transition and meeting global emissions reduction goals.
