By Mark Jaffe, EUCI energy writer
Global investment in clean and energy transition technologies reached a record $2.3 trillion in 2025, an 8% increase year-over-year, “defying policy and trade headwinds,” according to a BloombergNEF report.
Market reforms in China, the largest clean tech market, the Trump administration’s moves to shutdown support for renewable energy, as well as and increased international tariffs, again sparked by the U.S., all presented challenges.
China’s 4% drop to $800 billion in investment marked its first decline in financing since 2013, although it remains the single largest market.
The European Union (EU), despite coping with tariffs and economic headwinds contributed the most to the global increase with an 18% jump in investment to $455 billion.
Despite the Trump administration’s cutting renewable energy tax incentives and loans, and blocking some renewable energy projects, U.S. investment was up 3.5% to $738 billion.
“The U.S. held its own in a year of policy turmoil … defying expectations of a screeching halt in energy transition investment,” the report said. Renewables investment retreated slightly while electrified transportation and grid investments were up on the year.
While energy transition investment is at an all-time high and exceeds fossil fuel capital growth, it has slowed steadily, from 27% in 2021 to 8% in 2025.
BloombergNEF projects an average 25% increase over 2025 for 2026 to 2030. “We estimate that data center investment was around half a trillion dollars in 2025, putting it ahead of solar but behind the electrified transport sector,” the report said.
Globally, more than $2 trillion of the total went into three sectors: electrified transport, renewable energy, and power grid.
Electrified transport accounted for $893 billion in investments, a 21% annual increase, with funding going to the purchase of electric vehicles and the buildout of charging infrastructure.
Renewable energy, was the second-largest sector, with $690 billion in new investments, led by solar. Renewables funding, however, was down 9.5% compared to 2024 as market reform in China dampened activity.
Grid investment jumped 17% to $483 billion as grid operators race to strengthen networks in the face of new demands for power and rising equipment costs.
After three consecutive years of decline, private and public equity financing rebounded with a 53% year-on-year increase to $77.3 billion.
“While much attention is paid to climate-tech fundraising from VC/PE investors and public equity markets, it is in fact the debt markets that provide far more of the financing for the energy transition – $1.2 trillion,” the BloombergNEF report said.
The power grid sector saw the biggest growth in debt issuance, up 41% compared to 2024.
Despite the 2025 drop in investment, China remained the largest market for energy transition investments, with the country accounting for 34% of global investment – more than double the U.S.
Still, the aggregate investment across the U.S., EU and United Kingdom in 2025 surpassed China at $918 billion.
“When comparing this combined Western group head-to-head against China, the investment lead has actually changed hands every year since 2021, suggesting a more close-run race,” BlombergBNEF said.
Processing…please wait
