Global government spending on energy more than doubled since 2019: International Energy Agency

Global government spending on energy has more than doubled since 2019, driven by successive global shocks that pushed policymakers to prioritize energy security, resilience and affordability, the International Energy Agency said in a new report on Friday.

In its State of Energy Policy 2026 report, the IEA said annual government spending on energy exceeded $405 billion in 2025, following years marked by the COVID-19 pandemic, the 2022 energy crisis and recent turmoil in the Middle East.

The agency said most of the spending has been directed toward longer-term investment areas such as energy infrastructure, advanced manufacturing, renewable energy, energy efficiency and incentives for fuel switching.

The report said that even before the outbreak of the war in the Middle East this year and its major effects on global energy markets, annual government energy spending was projected to remain close to 2025 levels through 2030.

According to the IEA, the current wave of policy support reflects a broader shift in how governments approach energy systems after repeated supply disruptions and price shocks over the past five years.

,The report tracks more than 6,500 policy measures across 84 countries in 2025, covering over 200 areas of energy policymaking, including public spending, emergency stockholding, energy access, regulation and climate pledges.

The IEA said the 2022 energy crisis, following the start of Russia’s war in Ukraine underscored the importance of better-targeted consumer support. Of the roughly $220 billion spent globally on consumer protection measures that year, only about one-quarter was directed at the households most in need, increasing the fiscal burden of the interventions.

It also said the crisis prompted stronger emergency mechanisms for natural gas, with 30 countries accounting for more than 40% of global gas imports, expanding stockholding requirements for gas storage.

“Energy policy is being shaped by a complex and evolving set of global constraints,” Laura Cozzi, the IEA’s director of sustainability, technology and outlooks, said in the report.

She said governments are working to protect consumers, strengthen resilience and secure supplies, but added that short-term responses should not undermine long-term energy objectives.

The IEA also warned that the current energy crisis linked to the conflict in the Middle East could spark a new phase of policymaking, echoing responses seen during the oil shocks of the 1970s.