Global investment in the energy transition rose to a record $2.3 trillion in 2025, up 8% from a year earlier, driven by spending on electrified transport, renewable power and electricity grids, according to a BloombergNEF (BNEF) report released this year.
The annual Energy Transition Investment Trends report said electrified transport led investment flows at $893 billion, followed by renewable energy at $690 billion and grid infrastructure at $483 billion, underscoring the scale of capital shifting toward low-carbon systems.
Renewable energy investment, however, fell 9.5% year-on-year, largely due to regulatory changes in China that introduced uncertainty in the world’s largest power market, while hydrogen and nuclear were the only other sectors to see declines.
BNEF found that clean energy supply investment outpaced fossil fuel supply for a second consecutive year, with the gap widening to $102 billion, as fossil fuel investment fell for the first time since 2020.
The decline was driven by lower spending on upstream oil and gas and fossil power generation, even as overall energy transition investment growth slowed from 27% in 2021 to 8% in 2025.
Asia Pacific remained the largest investment region, accounting for 47% of global spending, with China leading at $800 billion despite its first drop in renewable funding since 2013.
Investment rose sharply in the European Union, up 18% to $455 billion, while U.S. spending increased 3.5% to $378 billion despite policy headwinds, and India posted a 15% rise to $68 billion.
Clean energy supply chain investment grew 6% to $127 billion, led by battery manufacturing and materials, though overcapacity continued to pressure clean-tech prices, BNEF said.
Climate-tech companies raised $77.3 billion in equity funding in 2025, rebounding after three years of decline, while mergers and acquisitions climbed 37% to $99.1 billion.
Energy transition debt issuance reached $1.2 trillion, up 17%, highlighting continued investor appetite as countries seek to boost energy security and domestic supply chains.