Global investment in the energy transition reached a record US$2400bn in 2024, with US$807bn directed to renewable energy, according to IRENA and the Climate Policy Initiative. The organisations said the renewables total accounted for around one third of all transition finance, but added that annual growth slowed to 7.3% in 2024 compared with 32% the previous year.
They said the findings form part of the Global Landscape of Energy Transition Finance 2025, published ahead of COP30 in Belém. IRENA and CPI said 96% of renewable energy investment went to the power sector. They added that solar PV investment rose 49% to $554bn. The report said spending on renewable power, grids and battery storage exceeded fossil fuel investment in 2024, although fossil spending increased. IRENA and CPI said 90% of global energy transition investment remained concentrated in advanced economies and China.
IRENA said advanced and major economies can rely on domestic finance to support their transitions, while lower-income countries depend on external support due to underdeveloped financial markets, high capital costs and fiscal constraints. The agency said nearly half of total global investment in 2023 was provided as debt, mostly at market rates, while grants accounted for less than 1%.
IRENA and CPI said investment in transition-related manufacturing remains critical but highly concentrated, with China accounting for 80% of global factory investment for solar, wind, battery and hydrogen technologies between 2018 and 2024. They said global investment in these manufacturing facilities fell 21% to US$102bn in 2024 due to lower spending on solar PV factories, while battery factory investment almost doubled to US$74bn. The organisations said foreign direct investment and technology partnerships will be vital to expand manufacturing in emerging and developing economies.
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