- Global energy transition investment reached USD 2.4 trillion in 2024, signalling strong momentum but still falling short of climate requirements.
- Rising global energy transition investment shows progress, yet the world remains off course in meeting the 1.5°C pathway.
Global energy transition investment reached an impressive USD 2.4 trillion in 2024, marking a remarkable 20% increase compared with the average of the previous two years. This rise is significant because, for the first time, funding for renewable power, electricity grids, and battery storage exceeded fossil fuel investment.
Renewable-related technologies attracted USD 1.19 trillion, while fossil fuels drew USD 1.13 trillion. Consequently, the shift highlights the growing global effort to reduce emissions and build a low-carbon future.
Solar power drove much of this investment growth. Solar PV alone attracted USD 554 billion, a 49% increase that confirms its dominance in the clean energy transformation. Electric vehicles followed with USD 763 billion, representing a 33% rise. Battery storage recorded the fastest expansion at 73%, bringing total investment to USD 54 billion.
Power grid investment also grew steadily, rising by 14% to USD 359 billion. Meanwhile, renewable energy investment reached USD 807 billion, reflecting a 22% increase compared with earlier years. These figures demonstrate consistent momentum, also revealing that global ambition continues to expand.
Nevertheless, the world remains far from achieving its key climate goals. IRENA warns that investment must almost double between 2025 and 2030 to align with the 1.5°C pathway. Current financial flows cannot deliver the rapid scale-up of renewable power and grid infrastructure required to stabilise the climate. This shortfall represents one of the most pressing barriers to global progress.
Moreover, investment remains uneven across regions. China and advanced economies accounted for 90% of all energy-transition spending in 2024. The Least Developed Countries received only 0.22% of the total. Sub-Saharan Africa continues to lag. China invested USD 248 per person; Europe invested USD 229 per person. Sub-Saharan Africa managed to invest just USD 15 per person. These contrasts highlight a widening inequality that threatens global climate ambitions.
Private funding continues to dominate global flows, accounting for 60% of investment, around USD 397 billion, while public funding provides the remaining 40%. Most investments also stay within domestic or regional boundaries.
China retains 99% of its renewable-energy investment locally. Europe sources 81% of its requirements within the region. Sub-Saharan Africa, by contrast, secures only 53% of its needs domestically, relying heavily on international partners.
The report calls for stronger policies, more predictable regulation, and targeted financial mechanisms to bridge investment gaps. It urges advanced economies to increase climate finance for developing nations and warns that ongoing public subsidies for fossil fuels undermine global climate efforts.
It also emphasises the need to strengthen supply chains, including those for manufacturing and mineral extraction, particularly for lithium, to support fair and sustainable development worldwide.