807 billion US dollars invested globally in renewable energies

Global investment in the energy transition reached a new record of USD 2.4 trillion in 2024 - an increase of USD 20 % compared to the average annual level of 2022/23. Around a third of this went into renewable energy technologies, bringing investment in renewable energy to USD 807 billion. 

Growth slows down

Despite this milestone, year-on-year growth in renewable energy investment slowed significantly: annual investment increased by 7.3 % in 2024, compared to 32 % in the previous year, according to a new report by the International Renewable Energy Agency (IRENA) and the Climate Policy Initiative (CPI).

The report «Global Landscape of Energy Transition Finance 2025» was published in the run-up to the UN Climate Change Conference COP30 in Belém, Brazil. It aims to inform the global finance dialog and support delegations by mapping investments in renewable energy technologies and their supply chains and examining regional trends as well as financing sources and instruments.

Key findings: 

• 96 % of investments in renewable energies were made in the energy sector, continuing a long-term trend.
• Global investments in solar PV reached a new record high in 2024 with 554 billion US dollars a record value, which corresponds to an increase of 49 % corresponds.
• Investments in renewable energies, electricity grids and battery storage exceeded investments in fossil energies in 2024, although expenditure on fossil energies is increasing. 
• Investments in technologies for the energy transition increased worldwide, but 90 % continued to be concentrated in industrialized countries and China, while emerging and developing countries lagged behind.

Francesco La Camera, Director General of IRENA, said: «Investment in the energy transition continues to grow, but not at the pace needed to meet the global target of tripling renewable energy capacity by 2030. While investment in renewable energy is increasing significantly, it remains heavily concentrated in the most advanced economies. As countries gather at COP30 to advance the »Baku-Belém Roadmap' to mobilize 1.3 trillion, scaling up finance for emerging and developing economies is critical to make the energy transition truly inclusive and global."

Gap between rich and poor economies

The IRENA report shows that advanced and large economies can rely on domestic financial resources to finance the energy transition. In contrast, lower-income countries are dependent on external support due to underdeveloped financial markets, limited fiscal space, high capital costs and increased debt vulnerability, among other factors.

In 2024, almost half of total investments worldwide were provided in the form of debt, predominantly at market conditions. Equity accounted for the remaining share. Grants accounted for less than 1 %. The urgent need to mobilize investment, combined with a lack of impact-oriented capital such as low-cost loans and grants, risks exacerbating the debt burden.

Francesco La Camera added: «IRENA has long called for a more effective use of public funds to unlock private investment through effective risk mitigation instruments. However, heavy reliance on profit-driven capital is causing developing countries to fall behind. Where private finance is not flowing, the public sector must take the lead, supported by stronger multilateral and bilateral cooperation and increased climate finance.»

China with largest investments

IRENA's new report also highlights that investment in supply chains and manufacturing of energy transition technologies remains critical, but remains highly concentrated. Between 2018 and 2024, China accounted for 80 % of global investment in manufacturing equipment for solar, wind, battery and hydrogen technologies. However, on a positive note, new manufacturing capacity is emerging outside of advanced economies and China is extending the energy security and socio-economic benefits of the energy transition to other developing countries.

Overall, global investment in the manufacture of solar, wind, battery and hydrogen technologies fell by USD 21 % to USD 102 billion in 2024, due to a significant decline in investment in the manufacture of solar PV systems. In contrast, investment in battery manufacturing has almost doubled to USD 74 billion, reflecting the increasing demand for storage capacity in power grids, electric vehicles and data centers.

According to IRENA, foreign direct investment through joint ventures, technology partnerships and knowledge sharing is crucial to strengthen international cooperation and expand the production capacities of energy transition technologies in emerging and developing countries, including through South-South cooperation. The Agency calls for targeted action to ensure that these activities are implemented in a socially and environmentally sustainable manner and that their benefits are shared equitably.

Source: IRENA