Global energy-transition investment rose to a record $2.4 trillion in 2024, 20% above the 2022–23 average, with about one-third flowing into renewable technologies and lifting renewable energy investment to $807 billion, the International Renewable Energy Agency (IRENA) and Climate Policy Initiative said Monday.
Despite the milestone, growth in renewables slowed sharply, with annual investments rising 7.3% in 2024 compared with 32% a year earlier, according to the report titled Global Landscape of Energy Transition Finance 2025.
According to the report’s key findings, 96% of renewable energy investment went to the power sector, continuing a long-term trend.
Global solar PV investment reached a record $554 billion in 2024, up 49% from the previous year. Spending on renewable power, grids and battery storage exceeded fossil-fuel investment last year, although fossil spending is rising.
Energy-transition investment grew worldwide, but 90% remained concentrated in advanced economies and China, leaving emerging and developing countries behind.
The report noted that advanced and major economies can rely on domestic financial resources to fund their energy transitions, while lower-income countries depend on external support because of underdeveloped financial markets, limited fiscal capacity, high capital costs and debt vulnerabilities.
According to the report, investment in energy transition supply chains and manufacturing remains critical, but highly concentrated.
China accounts for 80% of global investment in manufacturing facilities for solar, wind, battery and hydrogen technologies between 2018 and 2024. Additionally, new factories are emerging outside advanced economies and China is expanding energy security and socio-economic benefits of the transition to other developing economies.
Overall, global investment in factories producing solar, wind, battery and hydrogen technologies fell 21% to $102 billion in 2024, driven by a sharp drop in solar PV manufacturing investment. By contrast, battery factory spending nearly doubled to $74 billion, reflecting rising demand for storage in grids, electric vehicles and data centers.
Commenting on the report, Francesco La Camera, director-general of IRENA, said that investments in energy transition continue to grow but not fast enough to meet the global goal of tripling renewable capacity by 2030.
“Funding for renewables is soaring but remains highly concentrated in the most advanced economies,” La Camera added.
“As countries gather at COP30 to advance the 'Baku to Belém Roadmap to 1.3 trillion', scaling finance for emerging and developing countries is essential to make the transition truly inclusive and global,” he added.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
