Global energy transition investment rose 8% YoY to a record $2.3 trillion in 2025, covering climate-tech equity, debt, clean energy supply chains, and deployment
Electrified transport led investment with $893 billion, up 21% YoY, driven by EV purchases and charging infrastructure
Renewable energy investment reached $690 billion, with solar leading, but overall renewables spending falling 9.5%, partly due to China’s shift to market-based pricing and overcapacity
BloombergNEF expects energy transition investment to keep rising, averaging 25% annual growth between 2026 and 2030
Global investment into energy transition increased 8% year-over-year (YoY) to a record $2.3 trillion in 2025, despite trade disruptions and heightened geopolitical tensions last year, says Bloomberg New Energy Finance (BloombergNEF) in its Energy Transition Investment Trends 2026 report.
This investment comprises climate-tech equity finance, energy transition debt issuance, clean energy supply chain, and spending to deploy clean technologies. Last year, all 4 of these indicators moved upward, with climate-tech equity finance returning to growth, up 53%, after 3 years of decline. Energy transition debt issuance climbed to $1.2 trillion.
“This past year has showcased that despite policy and trade headwinds, the global energy transition is resilient and provides a number of opportunities for investors,” said BloombergNEF Deputy CEO Albert Cheung.
Electrified transport accounted for the lion’s share of all energy transition investments last year, securing $893 billion on purchasing electric vehicles (EVs) and developing charging infrastructure, representing a 21% YoY jump.
Renewable energy followed next, accounting for $690 billion of the total. While solar led this category, solar investment fell 9.5%, with analysts citing China’s shift to a market-based pricing mechanism.
To accommodate new generation, in keeping with the rising demand, grid operators rushed to create space due to which power grid investment surged to $483 billion.
Clean energy supply investment exceeded fossil fuel supply investment for the 2nd year in a row, with the gap widening from $85 billion in 2024 to $102 billion in 2024. This was mainly due to lower spending on upstream oil and gas and fossil power generation, partly offset by higher investment in gas and coal.
BloombergNEF says clean energy supply chain investment rose 6% to $127 billion. This includes spending on new factories for solar, batteries, electrolyzers and wind equipment, as well as mines and processing facilities for battery metals commissioned in 2025. Batteries and battery metals led this segment.
On the other hand, investment in solar fell sharply owing to overcapacity. Analysts expect downward pressure on clean-tech product prices to persist despite an increase in overall investment. Data center investment worth around half a trillion dollars beat solar, but trailed the electrified transport sector.
Despite the drop in renewables funding, BloombergNEF notes that renewables, storage, EVs, and grids – the most established areas of energy transition – continue to dominate investment, with little risk and increasingly proven business models.
Geographical Trends
While China’s energy transition investment fell for the first time since 2013 to $800 billion, it maintained its lead over the rest of the world, accounting for 34% of global investment. It is followed by the US, Germany, and the UK in 2nd, 3rd, and 4th spots, respectively, among the top 10 markets.
India replaced France to claim the 4th position. Saudi Arabia is the new entrant to the list in 10th position, thanks to its ‘surging investment into renewables and grids’.
As a bloc, the European Union (EU) was the largest market after China, investing $455 billion last year.
China still leads clean-tech manufacturing investment, but its share is slowly shrinking. Chinese manufacturers are investing in expanding their overseas capacity to cope with lower margins in the domestic market. Meanwhile, the US, the EU, and India are working to bring more clean-tech manufacturing onshore, even though scaling production is challenging, it notes.
Cheung added, “As many economies look to strengthen energy security and build domestic supply chains, clean energy investment will continue to rise, especially as it relates to global data center buildouts.”
BloombergNEF analysts forecast that energy transition investment will continue over the near term, increasing 25% YoY on average over the 2026-2030 period in its base-case scenario to $2.9 trillion.
A free summary version of the report is available for download on BloombergNEF’s website. The full report is accessible to its clients.
Speaking of India’s onshoring of clean-tech manufacturing, TaiyangNews is bringing together the Indian solar PV manufacturing industry at the Solar Technology Conference India 2026 (STC.I 2026) on February 5 and 6 in Aerocity, New Delhi. This 2nd edition of the TaiyangNews physical conference will also have banks, investors, and policymakers in attendance. Register for the event here.