GLOBAL LANDSCAPE OF ENERGY TRANSITION FINANCE 2025

Global energy transition investments reached a record USD 2.4 trillion in 2024, yet remain insufficient to meet the 1.5°C pathway. While solar PV and battery storage show strong growth, other technologies like wind and green hydrogen face significant headwinds. Investment is heavily concentrated in China and advanced economies, leaving least developed countries (LDCs) and Sub-Saharan Africa severely underfunded and dependent on international public finance.

• Investment in renewable power, grids, and battery storage combined exceeded fossil fuel investments in 2024, totaling USD 1.19 trillion compared to USD 1.13 trillion for fossil fuels.
• There is a severe geographic imbalance in investment; China and advanced economies accounted for over 90% of energy transition investments in 2024, while LDCs received less than 0.22%.
• Solar PV is the only renewable technology with investment levels nearly aligned with the 1.5°C Scenario, reaching USD 554 billion in 2024.
• Wind energy investments declined by 10.5% in 2024 to USD 196 billion, with offshore wind specifically falling by 45% to USD 39 billion due to inflation, permitting delays, and supply chain pressures.
• Green hydrogen investments declined by 20% in 2024, hampered by high production costs, uncertain demand, and risks related to export and policy.
• Investment in power grids grew by 14% in 2024 to USD 359 billion, but needs to reach USD 671 billion annually by 2030 to support the 1.5°C pathway.
• Battery storage investments surged by 73% over the 2022/2023 average to reach USD 54 billion in 2024, driven by a 94% cost decline since 2010.
• Energy efficiency investments grew by only 3% to USD 346 billion in 2024, leaving a massive investment gap of over USD 1.8 trillion per year.
• The public sector provided 40% of total renewable energy investments in 2022/2023, but this is heavily skewed by China, where public finance accounted for 64% of investment.
• Investments in manufacturing facilities for solar, wind, battery, and hydrogen technologies dropped by 21% to USD 102 billion in 2024, primarily due to a 72% decline in solar PV factory investments.
• Mining and refining of lithium, cobalt, and nickel reached a record high of USD 28.62 billion in 2024, with refining capacity heavily concentrated in China.
• Sub-Saharan Africa is the only region where the majority of renewable energy investment originates from international sources (53%) rather than domestic sources.

APA

Rana, F., Wild, P., Guinto, H. S., Li, S., Barron, M., Sloley, A., Alanah, I., & Lee, A. (2025). GLOBAL LANDSCAPE OF ENERGY TRANSITION FINANCE 2025. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Global-Landscape-of-Energy-Transition-Finance-2025.pdf

Chicago

Rana, Faran, Patricia Wild, Hannah Sofia Guinto, Shengzi Li, Mairéad Barron, Alfred Sloley, Ines Alanah, and Austin Lee. GLOBAL LANDSCAPE OF ENERGY TRANSITION FINANCE 2025. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Global-Landscape-of-Energy-Transition-Finance-2025.pdf.

Wikipedia

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BibTeX

@techreport{rana2025global, author = {Rana, Faran and Wild, Patricia and Guinto, Hannah Sofia and Li, Shengzi and Barron, Mairéad and Sloley, Alfred and Alanah, Ines and Lee, Austin}, title = {{GLOBAL LANDSCAPE OF ENERGY TRANSITION FINANCE 2025}}, institution = {Climate Policy Initiative}, year = {2025}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Global-Landscape-of-Energy-Transition-Finance-2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }