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IEA’s World Energy Investment Report 2025: China Leads Global Energy Investments

Published on June 10, 2025
Current Context: The World Energy Investment 2025 report, released by the International Energy Agency (IEA) on June 5, 2025, provides a comprehensive analysis of global energy investment trends.
IEA’s World Energy Investment Report 2025: China Leads Global Energy Investments
Key Highlights
  • Total Global Energy Investment: Expected to reach $3.3 trillion, with $2.2 trillion allocated to clean energy—twice the amount spent on fossil fuels.
  • China’s Leadership: Invests twice as much as the EU, nearly equaling EU and US combined in total spending.
India’s Role:
  • Renewable energy investment surged to $37 billion, up from $13 billion (2015).
  • Fossil fuel investment grew to $49 billion, continuing its importance in India’s energy mix.
  • Grid and storage investments declined, raising infrastructure concerns.
Solar Dominance: Investment projected at $450 billion, making solar the largest energy investment globally.
Battery Storage Growth: Expected to exceed $66 billion, enhancing renewable integration.
Nuclear Resurgence: Investment grew 50% in five years, reaching $75 billion in 2025.
Coal Investment Continues: Despite clean energy growth, China and India still fund coal projects, with China building 100 GW of new coal-fired plants.
Grid Infrastructure Challenge: Investments remain at $400 billion annually, posing electricity security risks.
Investment Disparities: Africa accounts for only 2% of global clean energy investment, despite housing 20% of the world’s population.

Question:

Q.1 According to the IEA’s World Energy Investment 2025 report, what is the projected total global energy investment for 2025?
a) $2.2 trillion
b) $3.3 trillion
c) $1.5 trillion
d) $4.5 trillion

Answer: b) The report highlights that global energy investment is expected to reach $3.3 trillion, out of which $2.2 trillion is allocated to clean energy.
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