Global investment in the energy transition rose to a record USD 2.4 trillion in 2024, representing a 20% increase on the annual average for 2022–23. Around one-third of this went to renewable energy technologies, driving total renewable investment to USD 807 billion.
However, despite hitting an all-time high, the growth rate of renewable investment slowed sharply. According to a new report from the International Renewable Energy Agency (IRENA) and the Climate Policy Initiative (CPI), renewable investment increased by only 7.3% in 2024, compared with a substantial 32% uplift in the previous year.
The report, Global Landscape of Energy Transition Finance 2025, released ahead of the UN Climate Conference COP30 in Belém, Brazil, tracks global finance flows across renewable technologies and their supply chains. It also highlights regional trends, sources of funding and financial instruments to support policymaking and climate negotiations.
Key findings:
- 96% of renewable energy investments continued to flow into the power sector.
- Global investment in solar PV reached a new high of USD 554 billion in 2024, marking a 49% rise.
- Investment in renewable power, grids and battery storage overtook fossil fuel spending, although fossil investment is again increasing.
- Global investment in energy transition technologies expanded, but 90% was concentrated in advanced economies and China, leaving emerging and developing countries at a disadvantage.
Francesco La Camera, Director-General of IRENA, said: “Investments in energy transition continue to grow but not at the pace needed to achieve the global goal of tripling renewable capacity by 2030. Funding for renewables is soaring but remains highly concentrated in the most advanced economies. As countries gather at COP30 to advance the ‘Baku to Belém Roadmap to 1.3 trillion’, scaling finance for emerging and developing countries is essential to make the transition truly inclusive and global.”
According to IRENA, advanced and major economies can leverage domestic financial resources to support their transitions. Lower-income nations, however, must rely heavily on external capital due to weaker financial markets, restricted fiscal space, high borrowing costs and debt pressures.
Almost half of all energy transition investment in 2023 took the form of debt, primarily at market rates, with most of the remainder provided as equity. Grants accounted for less than 1%. Limited access to concessional or impact-driven capital heightens the risk of increasing debt stress, particularly for developing economies.
Mr. Francesco La Camera added: “IRENA has long called for smarter use of public funds to unlock private investment through risk-mitigation tools. Yet the heavy reliance on profit-driven capital is leaving developing countries behind. Where private finance won’t flow, the public sector must lead, backed by stronger multilateral and bilateral cooperation and scaled-up climate finance.”
The report further underscores that investment in transition-related manufacturing and supply chains remains essential but is heavily concentrated. Between 2018 and 2024, China accounted for 80% of global investment in manufacturing facilities across solar, wind, battery and hydrogen technologies. Encouragingly, new factories are beginning to emerge in other developing economies, broadening energy security and socio-economic benefits.
Overall, global investment in factories producing solar, wind, battery and hydrogen technologies fell 21% to USD 102 billion in 2024, largely due to a significant decline in solar PV manufacturing investment. Conversely, battery manufacturing investment nearly doubled to USD 74 billion, driven by accelerating demand from electricity grids, electric vehicles and data centres.
Strengthening international collaboration — through foreign direct investment, joint ventures, technology partnerships and knowledge exchange — will be crucial to expanding energy transition manufacturing in emerging and developing economies, including through South–South cooperation.
Dedicated policies will also be required to ensure that manufacturing expansion is environmentally and socially responsible, and that benefits are distributed fairly.