Global investment in the energy transition reached an unprecedented $2.3 trillion in 2025, up 8% from the previous year, according to new data from BloombergNEF. The report marks another milestone as clean energy supply investment outpaced fossil fuel supply for a second consecutive year, with the gap widening to $102 billion.
Global Investment by Region
- China: $800 billion (largest market)
- European Union: $455 billion (up 18%)
- United States: $378 billion (up 3.5%)
- Clean vs Fossil Gap: $102 billion
- California Battery Storage: 17,000 MW (up 2,100% since 2019)
Regional Leaders
China retained its position as the largest market with $800 billion in investment, though the country posted its first decline in renewable funding since 2013. The European Union showed remarkable resilience, growing 18% to $455 billion despite persistent economic headwinds. US investment also increased 3.5% to $378 billion, even as the Trump administration pursued policies to slow the energy transition.
California's Battery Boom
California continues to lead domestic efforts, with battery storage capacity surging 2,100% since 2019 to reach nearly 17,000 MW. The state now holds more battery capacity than any jurisdiction worldwide except China. Governor Gavin Newsom announced California will become the first subnational entity to join the Global Energy Storage and Grids Pledge, targeting 1,500 GW of storage globally by 2030.
Data Centre Demand Surge
Data centre energy demand has emerged as a significant driver of clean energy investment, with US demand projected to increase 130% by 2030 from 2024 levels according to the International Energy Agency. This surge is pushing utilities and grid operators to accelerate deployment of virtual power plants and distributed energy resources.
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