Energy investment hits $2.3t as EV and grid spending surge

Renewable investment dropped 9.5% year-on-year.

Global energy investment reached a record $2.3t in 2025, up 8% from the previous year, BloombergNEF said in its annual Energy Transition Investment Trends report.

Electrified transport led spending at $893b, followed by renewable energy at $690b and power grids at $483b.

Renewable investment fell 9.5% year on year after regulatory changes in China created uncertainty in the world’s largest clean-power market.

Hydrogen and nuclear were the only other sectors to decline, attracting $7.3b and $36b, respectively.

For the second straight year, clean-energy supply investment exceeded fossil-fuel supply, with the gap widening to $102b.

Fossil-fuel supply spending fell $9b, driven by lower outlays for upstream oil and gas and fossil-fuel power plants.

Growth in overall transition investment has slowed sharply since 2021, dropping from 27% to 8% in 2025.

Asia-Pacific remained the largest investment destination, accounting for 47% of global spending. China led with $800b but recorded its first drop in renewable funding since 2013. India’s investment rose 15% to $68b.

The European Union increased spending 18% to $455b, whilst the United States grew 3.5% to $378b, despite policy efforts to slow the transition.

“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,” Albert Cheung, deputy CEO at BloombergNEF, said, citing growing demand from data-center construction and domestic supply-chain expansion.

Clean-energy supply-chain investment rose 6% to $127b, led by battery manufacturing and materials, though overcapacity continues to pressure prices. China remained the dominant manufacturing hub.

Climate-tech companies raised $77.3b in equity in 2025, up 53%, ending three years of declines. M&A activity climbed 37% to $99.1b, driven by clean-power and building-technology deals linked to data centers. Energy-transition debt issuance totaled $1.2t, up 17%.

BloombergNEF estimated data-center investment at about $500b in 2025, ahead of solar but behind electrified transport.

The report said renewables, storage, EVs and grids continue to dominate spending, whilst wind manufacturing risks lagging future net-zero needs.