Global Energy Transition Investments Exceed $2Tn: BloombergNEF

BloombergNEF’s annual report found that low-carbon energy transition investment grew by 11% worldwide, reaching a record $2.1 trillion in 2024. According to the Energy Transition Investment Trends 2025 report, this growth was driven by electrified transport, renewable energy, and power grids. The report revealed that all these sectors reached new highs last year, along with energy storage investment. The study also showed that, while overall investment in energy transition technologies set a new record, the pace of growth was slower than in the previous three years, when investment had jumped by 24-29% annually.

Overall Investment Trends

According to the BloombergNEF’s report, electrified transport remained the largest investment driver, reaching $757 billion in 2024. This figure includes spending on passenger EVs, electric two- and three-wheelers, commercial electric vehicles, public charging infrastructure, and fuel cell vehicles. Investments in renewable energy hit $728 billion, which includes investment in wind (both on- and offshore), solar, biofuels, biomass and waste, marine, geothermal and small hydro. Finally, investment in power grids totaled $390 billion, which includes investment in transmission and distribution lines, substation equipment, and the digitalization of the grid.

BNEF’s report also reveals a marked difference between investment in mature and emerging sectors of the clean energy economy. Technologies that are proven, commercially scalable and have established business models, like renewables, energy storage, electric vehicles, and power grids, accounted for the vast majority of investment in 2024. These sectors drew $1.93 trillion, growing 14.7%, despite hindrance from policy decisions, higher interest rates and expected slower consumer purchasing.

Energy Investment Across Markets 

The largest investment market was mainland China, which alone accounted for $818 billion of investment, up 20% from 2023. China’s investment growth was equivalent to two-thirds of the total global increase in the year, with all sectors reviewed in the report showing solid growth.

The EU, US, and UK, which drove growth in 2023, saw different results in 2024. Investment was stagnant in the US, reaching $338 billion, and down in both the EU and UK, hitting $381 billion and $65.3 billion, respectively. China’s total investment last year was greater than the combined investment of the US, EU and UK. Of the large markets included in the report, India and Canada also added to overall global growth, increasing their investments by 13% and 19%, respectively.

BNEF also reports that global energy transition investment would need to average $5.6 trillion each year from 2025 to 2030, in order to get on track for global net zero by 2050, in line with the Paris Agreement. This finding relies on BNEF’s New Energy Outlook 2024, which details a global pathway to net zero, and implies that current investment levels are only 37% of what is required to get on track. The ‘investment gap’ differs by geography and technology, with China closest to being on track, followed by Germany and the UK.

Along with investment in the low-carbon energy transition, BNEF’s report also tracks investment in the clean energy supply chain, including the equipment factories and battery metals production for energy technologies. In 2024, this investment fell slightly to $140 billion, but is set to grow to $164 billion in 2025. Some 60% of the total investment in the supply chain went to batteries last year, as battery cell factories are especially capital-intensive.

Climate-Tech Equity Finance

Finally, the Energy Transition Investment Trends 2025 report also tracks climate-tech equity finance and energy transition debt issuance. The research found, the Climate-tech companies raised $50.7 billion in private and public equity in 2024, down 40% year-on-year, and marking the third year of contraction. The fundraising was led by companies in clean power and transport, which together brought in $31.8 billion. The US was the largest market for equity raising, with $17.9 billion of new issuances tracked. China fell to second place with $9 billion.

Energy transition debt totaled $1 trillion in 2024, rising 3% compared with 2023. The largest component of this was corporate debt, which increased 5%, triggered by interest rate cuts around the world. Despite these rises, project debt volumes dipped and government energy transition debt levels were stable year-on-year. Similarly to other findings, the US and mainland China are the two biggest markers for energy transition debt, with both markets growing debt sales last year.