Key Takeaways:
- Record-breaking investment: Global spending on the low-carbon energy transition grew by 11% to hit $2.1 trillion in 2024, led by China.
- Slowing growth rate: Despite the record, the pace of investment growth has declined from previous years’ 24-29% increases.
- Major investment gap: To stay on track for net-zero by 2050, annual investment must reach $5.6 trillion—currently, it’s only 37% of that target.
Investment Growth Slows Despite Record Spending
Global investment in clean energy and infrastructure reached an all-time high of $2.1 trillion in 2024, according to BloombergNEF’s Energy Transition Investment Trends 2025 report. The increase, largely driven by renewable energy, electrified transport, power grids, and energy storage, marks an 11% growth from the previous year. However, this expansion is notably slower than in 2021-2023, when annual growth ranged between 24-29%.
Electrified transport remained the largest segment, attracting $757 billion in investments, while renewable energy drew $728 billion. Investments in power grids totaled $390 billion, supporting the transmission, distribution, and digitalization of energy networks.
China Leads the Charge While Western Markets Lag
China accounted for $818 billion—nearly two-thirds of the total global investment increase—growing 20% from 2023. In contrast, investment in the U.S. stagnated at $338 billion, while the EU and UK saw declines, with investments reaching $381 billion and $65.3 billion, respectively. Canada and India, however, saw double-digit increases in their energy transition spending.
Emerging Technologies Struggle to Attract Capital
While mature sectors like renewables, electric vehicles, and power grids drew $1.93 trillion in investment, emerging technologies—such as hydrogen, carbon capture, and clean industry—struggled. Investments in these areas fell 23% year-on-year to just $155 billion, hindered by high costs and uncertain commercial viability.
Albert Cheung, Deputy CEO of BloombergNEF, stressed the urgency of accelerating funding for these technologies:
“There is still much more that needs to be done, especially in emerging areas like industrial decarbonization, hydrogen, and carbon capture, in order to reach global net-zero goals.”
Closing the Investment Gap
To meet global net-zero targets by 2050, BloombergNEF estimates that annual investments need to reach $5.6 trillion between 2025 and 2030. Current levels fall significantly short, representing only 37% of the required amount. China remains closest to meeting its targets, followed by Germany and the UK.
Debt and Equity Markets Reflect Mixed Signals
While global energy transition debt issuance grew by 3% to $1 trillion, private and public equity fundraising for climate-tech companies fell sharply—dropping 40% to $50.7 billion. The U.S. led in equity fundraising, securing $17.9 billion, while China ranked second with $9 billion.
Despite the slowdown in investment growth, BloombergNEF’s report underscores that clean energy funding is at an all-time high, but the gap between current spending and what’s needed to meet climate goals remains vast.
Click here to Read the full report
Related Article: Bloomberg’s Green Shift: Biodiversity Solutions Take Root
