January 31, 2025 - Global investment in the transition to low-carbon energy has risen by 11%, reaching a record $2.1 trillion in 2024, according to BloombergNEF's annual report, 'Energy Transition Investment Trends 2025'.
Key investment sectors include:
Electrified Transport: $757 billion, covering passenger electric vehicles, electric two- and three-wheelers, commercial electric vehicles, public charging infrastructure, and fuel cell vehicles.
Renewable Energy: $728 billion, encompassing wind (both onshore and offshore), solar, biofuels, biomass, waste, marine, geothermal, and small hydro energy.
Electric Networks: $390 billion, including investments in transmission and distribution lines, substation equipment, and grid digitization.
Investment in mature sectors such as renewable energy and energy storage accounted for $1.93 trillion, a 14.7% increase, despite challenges like political decisions and rising interest rates.
In contrast, emerging technologies like electrified heat, hydrogen, carbon capture and storage (CCS), nuclear energy, and clean shipping saw only $155 billion, a 23% annual decline.
China led global investments with $818 billion, a 20% increase from 2023, contributing two-thirds of the total global growth. The US, EU, and UK experienced stagnant or declining investments, with the US at $338 billion, the EU at $381 billion, and the UK at $65.3 billion.
BNEF projects that global energy transition investments must average $5.6 trillion annually from 2025 to 2030 to meet net-zero goals by 2050, as outlined in the Paris Agreement. Current investment levels are only 37% of what is needed to stay on track.
In 2024, investments in clean energy supply chains slightly decreased to $140 billion but are expected to rise to $164 billion in 2025, with 60% allocated to battery manufacturing.
Climate technology companies raised $50.7 billion in private and public capital in 2024, marking a 40% decrease year-on-year, led by clean energy and transport sectors.