Energy investment on track for record $3.3 trillion, and more top energy stories

Global energy investment is set to increase to a record $3.3 trillion in 2025, according to new figures.

The annual World Energy Investment report from the International Energy Agency (IEA) finds that, despite geopolitical tension and economic uncertainty, investment in clean energy technologies including renewables, nuclear and electrification is expected to climb to a record $2.2tn this year.

Investment in coal, oil and natural gas is on course for $1.1tn – the first decline on the previous year since the pandemic.

The report also notes that China has cemented its position as the world's single largest investor in energy, and the technology attracting the most capital is solar PV.

In a statement accompanying the report, IEA Executive Director Fatih Birol said: “The fast-evolving economic and trade picture means that some investors are adopting a wait-and-see approach to new energy project approvals, but in most areas we have yet to see significant implications for existing projects.”

Next-generation energy is one of eight core technologies that will play a crucial role in transforming industries and creating new economic and societal value, new research says.

Next-gen energy represents a fundamental shift in how energy is generated, distributed and used, according to the World Economic Forum's Technology Convergence Report. As business continues to be shaped by the energy transition, the report lists three energy technologies that offer a pathway to accelerating innovation and scalability:

As energy efficiency and sustainability continue to grow in importance, the convergence of advanced energy technologies with AI and more will play a crucial role in advancing the energy transition across industries, the report says.

The energy transition will require a significant increase in the production of critical minerals such as lithium and copper to meet growing demand for clean technologies. Alongside, advanced materials will play a central role, as the Forum report notes. Combined with AI and next-gen energy systems, materials such as perovskite photovoltaics and synthetic diamonds will help to reshape industries from construction to semiconductors.

The Forum's Securing Minerals for the Energy Transition initiative is helping to accelerate the energy transition by promoting collaboration to ensure the availability of critical minerals and spurring innovation by promoting new technologies.

The World Bank has said it is committing $1 billion to a huge hydropower project in the Democratic Republic of Congo. The development – which has been called the world's biggest hydropower project – is being built in phases. The bank will initially commit $250 million for the third phase which, once completed, could generate 11,000 megawatts of power, which is more than three times the current capacity in a country where just 20% of the population has access to electricity.

Big tech's push to meet the power demands of AI with nuclear continues, with Meta agreeing a 20-year deal to buy output from a nuclear plant in Illinois, US.

Quality infrastructure must be embedded across the lifecycle of renewable projects to ensure power systems are resilient to factors including climate, according to a new report from the International Renewable Energy Agency.

Japan wants to spur development of its offshore wind farm sector as it looks to meet a target of 45 gigawatts of offshore capacity by 2040. Reuters reports the country is likely to incentivize developers against a backdrop of rising costs and delays to projects.

The US has proposed overturning limits on oil and gas drilling in an area of Alaska as it looks to increase production of domestic fuels.

Paraguay is seeking to sign agreements with Argentina and Brazil to build a natural gas pipeline that links the three countries.

China's solar exports to Pakistan have soared since 2024, the Financial Times reports, as Chinese solar panel prices have fallen and the cost of electricity in Pakistan has risen. At the same time, there has been a "flood" of battery energy storage systems from China to countries like Pakistan, the paper says.

Renewables supplied 77% of Portugal's electricity consumption in May, with solar at record highs, according to the country's national grid operator.

Average daily natural gas exports from Russia to Europe delivered by undersea pipeline rose by 10.3% in May compared to the previous month, according to calculations from Reuters.

Abu Dhabi has announced a new energy strategy aimed at transforming the sector by 2050. The plans include attracting $109 billion in foreign direct investment.

Africa is beginning to realize the benefits of renewable energy - but just providing access to electricity doesn't automatically transform lives. Productive use of renewable energy, which focuses on how deployment can directly support livelihoods, is a key lever for prosperity.

SolarDuck, a company that builds floating solar farms, wants to deploy more than 1 gigawatt of offshore solar capacity annually from 2035. Find out more about how its technology works and the impact it could have.

Clean energy has led to a historic fall in China's emissions despite a surge in demand for power. Learn more in this video:

To learn more about the work of the Centre for Energy and Materials, contact Ella Yutong Lin: ellayutong.lin@weforum.org.