Global investments in the energy transition reached a new record of USD 2.4-trillion in 2024 – a 20% increase from the average annual levels of 2022 and 2023. Despite annual investments more than doubling since 2019, they remain concentrated in advanced economies and China, leaving most emerging and developing countries behind.

Investments also remain well below what is needed to achieve the 1.5°C Scenario in IRENA’s World energy transitions outlook 2024 and the 2025 Delivering on the UAE Consensus report.

About one-third of investment in 2024 was directed towards renewable energy technologies, pushing renewable energy investment to USD 807 billion. Despite this milestone, year-on-year growth of renewables slowed significantly, with annual investments increasing by 7.3% in 2024, compared to 32% the year before.

The report reveals that most investment is provided at market rate debt and equity, with grants accounting for less than 1%. There is therefore an urgent need to mobilise investments – particularly impact-driven capital such as low-cost debt and grants – to maintain the momentum of the energy transition whilst avoiding exacerbating debt burdens.

Report by the International Renewable Energy Agency