Sustainability Watch

Global Insights & Development

Global Energy Investment to Hit $3.3 Trillion in 2025 Amid Geopolitical Strains, 5th June 2025

The International Energy Agency (IEA) released its World Energy Investment Report, projecting global energy investment to reach a record-breaking $3.3 trillion. Of this, $2.2 trillion will be directed toward clean energy technologies like renewables, grids, nuclear, and electric vehicles — nearly double the investment in fossil fuels. The surge is driven largely by energy security concerns amid rising geopolitical instability. China leads the charge, accounting for one-third of global clean energy investments. The report also marks a growing global shift toward electricity-based systems, while warning of stark regional imbalances, particularly in Africa, where energy access and funding remain critically low.

Key Takeaways:

• Clean Energy Boom: Clean energy investment in 2025 will reach $2.2 trillion — nearly double that of fossil fuels.
• China Leads the Charge: China is the world’s largest energy investor, responsible for one-third of global clean energy spending.
• Solar & Battery Growth: Solar PV will receive $450 billion, while battery storage exceeds $65 billion in investments.
• Electricity Surpasses Fossil Fuels: Investment in electricity-related infrastructure now outpaces fossil fuels by 50%, signalling a global energy transition.

The report signals a major global shift toward clean energy, with investment nearly doubling that of fossil fuels. China emerges as the top investor, driving much of the growth. However, regional disparities, especially in Africa, highlight the need for more equitable energy funding.

EU Approves Flexible CO₂ Emissions Rules for Carmakers Through 2027, 28th May 2025.

The European Union finalized a regulatory amendment that allows carmakers to average their carbon dioxide (CO₂) emissions over a three-year period — from 2025 to 2027 — instead of evaluating compliance annually. This decision is a key part of the EU’s Industrial Action Plan for the automotive sector, designed to provide regulatory certainty and flexibility amid a rapidly evolving transition to green technologies. The policy aims to balance environmental goals with market realities, especially as manufacturers face complex geopolitical and economic conditions. While broadly welcomed by the industry, experts stress the need for stronger demand-side support, such as consumer incentives and charging infrastructure, to drive the shift toward zero-emission vehicles.

Key Takeaways: 

• Three-Year Averaging Introduced: Carmakers can now meet CO₂ targets by averaging emissions over 2025–2027, reducing year-on-year regulatory pressure.
• Industry-Aligned Reform: The change aligns with the EU’s Industrial Action Plan and received broad institutional backing to provide legal certainty.
• Call for Holistic Support: Industry groups stress the need for demand-side incentives and charging infrastructure to complement the regulatory easing.
• Focus on Commercial Vehicles Next: With zero-emission trucks making up just 2% of new sales, a review of commercial vehicle CO₂ standards is expected soon.

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