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In 2024, almost twice as much capital was invested in clean energy as was spent on fossil fuels, despite geopolitical tensions and economic uncertainty. Driven by declining costs of clean energy technologies, heightened energy security concerns and climate goals, this surge in funding has been heavily concentrated in advanced economies, painting a starkly different picture in emerging and developing economies.
World Energy Investment 2025 explores the global energy investment landscape in 2024. In Latin America, clean energy investment has grown by nearly 25% in the last 10 years, but the region needs to more than double grid investment to support electricity demand growth.
Africa is facing new challenges and opportunities across a continent where 600 million people still lack access to electricity and nearly 1 billion lack access to clean cooking. While private sector investment in clean energy more than doubled from 2019 to 2024, public and development finance institution funding for energy projects in Africa has fallen by one-third over the past decade, largely due to a decrease in Chinese development spending.
Private equity and venture capital now play a larger role in funding start-ups that focus on energy access, decentralised energy solutions and electric vehicles. Meanwhile, Southeast Asia’s energy demand has surged more than 35% since 2014, with clean energy now making up nearly half of investment and the region is emerging as a key player in solar PV and critical mineral supply chains.
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Globally, critical minerals have never been more important, and the IEA’s recent Global Critical Minerals Outlook 2025 underscores the major energy and economic implications of secure supply chains for these vital resources. While today’s critical mineral markets may appear well supplied, the report finds that a combination of increasing supply concentration in a handful of countries and the spread of export restrictions is raising the risk of disruptions.
Despite growing demand for critical minerals, investments in the market face significant uncertainties. While major economies seek to diversity their supply chains, other regions hope to increase production to generate domestic economic benefits.
Latin America, rich in critical minerals, is projected to reach USD 154 billion in mining and refining value amid regulatory reforms to attract foreign capital. China, already dominant, is expected to grow from 45% to 50% of global refining market share.
The rest of Asia is also emerging as a key player. Southeast Asia’s mining sector is set for rapid growth with a focus on nickel, cobalt and rare earths. Africa seeks to leverage its resources to maximise economic benefits through local processing, enhance bilateral co-operation and advocate transparency in critical mineral supply chains.
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Biomethane, also known as “renewable natural gas “, is a low-emissions fuel that is becoming an increasingly important facet of secure and sustainable energy transitions. Biomethane can be substituted for natural gas and can be used across industry, power, transport and buildings, and can be produced locally, contributing to local waste management, agricultural development, emissions reductions and energy security.
The IEA’s recently released Outlook for Biogas and Biomethane explores the potential of over 30 types of feedstocks in more than 5 million locations worldwide, analysing the current policy, consumption and supply landscapes.
Potential for biogases are concentrated in emerging market and developing economies, which are home to almost 80% of the feedstocks that could be used to sustainably produce biogases. By turning organic waste, such as crop residues, into biogas using a simple household biodigester, rural communities could improve access to energy and clean cooking.
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In other news…
As the global energy system rapidly electrifies, energy efficiency solutions are a way to improve resiliency and sustainability. Demand side flexibility – or changing behaviour to reduce energy consumption when demand is high – can make a significant impact, particularly in emerging and developing economies, helping to expand energy access.
A recent IEA webinar, Unlocking Demand Flexibility Through Digital Tools Webinar presented case studies and market insights from flexibility platforms and home energy management systems to nearly 200 participants. The webinar was co-organised by the IEA’s Digital Demand-Driven Electricity Networks (3DEN) Initiative, the IEA 4E TCP Efficient, Demand Flexible Networked Appliances (EDNA), and the Super-Efficient Equipment and Appliance Deployment (SEAD) Initiative.
Connecting the power system across national borders can integrate higher shares of renewable energy while reducing costs and increasing energy security. In the ASEAN region, several initiatives, such as the Lao PDR-Thailand-Malaysia-
To help address these challenges, the IEA and the Energy Market Authority (EMA) of Singapore co-organised the Regional Training Programme on Connecting ASEAN: Technical, Regulatory and Financial Pathways for Cross-Border Power Trade. Nearly 200 participants from 20 countries – primarily in the Asia-Pacific region – representing governments, regulators, utility companies, development banks, and the private sector gathered to explore best practices, including the most effective methods for assessing the technical feasibility of interconnection projects, methods for evaluating the socio-economic benefits of an interconnector and various financing models.
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IEA Executive Director Fatih Birol co-chaired a High-Level Energy Transition Dialogue with COP30 President-Designate André Corrêa do Lago, as part of the IEA’s ongoing support of Brazil’s COP30 Presidency. Hosted by the European Commission, participants discussed how to ensure COP-related energy commitments are met.
More than 55 energy and climate leaders from around the world came together to shape the energy-related activities, outputs and outcomes of the upcoming COP30 climate change conference in Brazil, noting that meeting climate goals through the right policies could unlock economic and social opportunities around the world.
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As COP30 focuses on turning energy commitments into action, it is crucial to monitor progress towards achieving existing goals. The IEA, in collaboration with the United Nations Framework Convention on Climate Change (UNFCCC), is tracking progress towards the energy goals set at COP28.
Our tracking work includes progress towards tripling renewable power capacity globally by 2030 and doubling the global rate of energy efficiency improvements by 2030. To specifically follow energy efficiency progress, we’ve also updated our Energy Efficiency Progress Tracker, a tool that allows users to explore historical data, market estimates and energy efficiency progress.
Earlier this month Dr. Birol met with newly elected African Union Commissioner for Infrastructure and Energy, Mrs Lerato Mataboge. Welcoming the IEA’s continued support for Africa’s energy and development goals, including improving access to clean cooking and expanding electrification, Commissioner Mataboge expressed her commitment to ongoing collaboration with the IEA.
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To continue strengthening our regional engagement in Africa and support for South Africa’s G20 Presidency, Dr Birol and South African Ambassador to France, Mr. Nkosinathi Mthethwa, co-hosted a luncheon for African ambassadors in Paris.
Representatives from 15 embassies from across Africa, including 10 ambassadors and deputy ambassadors, discussed priority issues for the continent’s energy sector, including updates on clean cooking progress and IEA’s tracking of the pledges made during the 2024 Summit on Clean Cooking in Africa.
They also highlighted the major opportunities for African countries to leverage their mineral resources to maximise economic benefits, enhance bilateral cooperation and contribute to the global energy transition.
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