China spends nearly as much on energy as US and EU… combined

The global energy investment landscape is undergoing a seismic shift, with projections indicating that investments will reach a record $3.3 trillion by 2025, as per the International Energy Agency (IEA).

A remarkable $2.2 trillion of that total is expected to target clean technologies, including renewables, battery storage, and nuclear power.

This substantial investment indicates a pivot towards energy security amid increasing geopolitical uncertainties and economic challenges.

Global Energy Investments Set to Reach $3.3 Trillion by 2025

China has firmly established itself as the preeminent player in global energy investment, currently outspending both the United States and the European Union combined.

Over the past decade, China’s share of global clean energy investment surged from 25% to nearly 33%, driven by significant expenditures in solar, wind, and electric vehicle technologies. In 2023 alone, global investments in solar technology are projected to reach a staggering $450 billion, indicating its dominance in the energy sector.

Despite these advancements, concerns loom regarding infrastructure inadequacies. The IEA reports that annual investments in energy grids, which stand at $400 billion, are failing to keep pace with new generation and electrification efforts.

This mismatch poses serious risks to electrical security, with delays in permitting and supply chain issues impeding progress. Moreover, while electricity investments are set to surpass fossil fuel expenditures by 50% this year, the ongoing reliance on coal in countries like China and India raises alarms about climate commitments.

Furthermore, Africa, despite housing 20% of the world’s population, receives a mere 2% of the global clean energy investment. The continent has seen a 33% decline in overall energy investments over the past decade, highlighting a critical disparity that must be addressed to ensure equitable energy access and progress toward climate goals.