Global Investment in the Energy Transition Surpasses US$ 2 Trillion

Global Investment in the Energy Transition

In 2024, global investment in the energy transition reached an all-time high, with nearly US$ 2.1 trillion committed to clean energy, electric vehicles (EVs), and grid infrastructure projects. This figure marks an 11% increase from 2023 and more than double the amount spent in 2020, reflecting the accelerating momentum behind global efforts to shift away from fossil fuels.

• Most of this investment flowed into two main sectors: electrified transportation and clean energy. Electrified transport saw over US$ 757 billion in funding, which included passenger and commercial EVs, electric two- and three-wheelers, and public EV-charging infrastructure. This was a 20% rise from the previous year. At the same time, renewable energy sources such as wind, solar, and hydropower attracted US$ 728 billion, the highest recorded to date, and 8% more than in 2023.
• Energy storage saw the fastest growth rate among key sectors, with spending jumping 36% to nearly US$ 54 billion. Meanwhile, global investment in the energy transition, especially in terms of power grid construction, is proving to be critical for supporting the expanding clean energy infrastructure, as the clean power infrastructure installations rose by 15% to slightly over US$ 390 billion globally.
• Geographically, China led the world in global investment in the energy transition, contributing US$ 818 billion in 2024. This was a 20% increase from 2023 and accounted for about two-thirds of the total global increase in investment. China's dominant position was evident as it represented nearly 40% of the global total, surpassing the combined investments of the United States, European Union, and United Kingdom. Moreover, China was the only major economy to post across-the-board growth in every tracked sector.
• Specifically, China’s clean energy investment in the energy transition sector alone is expected to hit US$ 675 billion in 2024. This surge is being driven by robust domestic demand in three key industries: solar energy, lithium-ion batteries, and electric vehicles. Following China, Europe is projected to invest around US$ 370 billion, and the United States approximately US$ 315 billion in clean energy initiatives. Together, these three economies represent more than two-thirds of the total global clean energy investment, highlighting the growing disparity in international capital flows