Clean Energy Investments to Surpass Oil and Gas in 2025

For the first time in 2025, investments in clean energy technology will be higher than spending on upstream oil and gas, according to S&P Global. Solar power will lead the way, making up half of all cleantech investments and two-thirds of installed capacity worldwide.

At least 620 GW of new solar and wind capacity will be added in 2024, matching the total power supply of India, Pakistan, and Bangladesh combined. Battery energy storage systems (BESS) will also overtake pumped hydro storage, improving energy reliability.

At least 620 GW of new solar and wind capacity will be added in 2024, matching the total power supply of India, Pakistan, and Bangladesh combined. Battery energy storage systems (BESS) will also overtake pumped hydro storage, improving energy reliability.

The transition will require an estimated $640 billion in 2025, with overall cleantech spending—including renewables, green hydrogen, and carbon capture—reaching $670 billion.

This shift moves investment away from hydrocarbon-producing nations to regions with growing power demand. One-third of clean energy spending will go toward small-scale solar installations and behind-the-meter energy storage.

However, spending still falls short of climate goals, especially the target of tripling renewable capacity by 2030. Meanwhile, China’s share of battery manufacturing is expected to decline to 61% by 2030, while India expands its PV manufacturing capacity to supply the U.S. market amid trade tensions.

As the global energy landscape shifts, clean energy investments will play a crucial role in shaping a sustainable future.