New market intelligence report recently released by BloombergNEF (BNEF) has revealed that investments in the energy transition markets hit a record $2,1 trillion in 2024. The Energy Transition Investment Trends 2025 report shows that investments grew 11%, driven by investments in electrified transport, renewable energy, energy and power grids.
Although investment in energy transition technologies reached a new all-time high, its growth rate lagged behind the previous three years, during which annual investment surged by 24-29%.
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. Electrified transport was the largest investment driver, reaching $757 billion in 2024.
Additionally, investments in power grids totaled $390 billion,and included investments in transmission and distribution lines, substation equipment, and the digitalization of the grid.
The largest market for investment 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.
“Our report shows just how much growth we’ve seen in the energy transition over the past few years, despite political uncertainty and high interest rates,” said Albert Cheung, Deputy CEO of BNEF.
“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. True partnership between the private and public sectors is the only solution to unlock the potential of these technologies.”
