Global energy investment is set to reach an unprecedented $3.3 trillion in 2025, driven largely by clean technologies and anchored by China’s dominant role as the world’s top energy investor, according to the International Energy Agency (IEA). The findings, released in the IEA’s latest World Energy Investment report, signal a pivotal shift that’s poised to impact project logistics both now and in the long term.
Clean energy technologies—including renewables, nuclear, grids, battery storage, low-emission fuels, energy efficiency, and electrification—are projected to attract $2.2 trillion in investment this year. This is double the $1.1 trillion expected to go into fossil fuels. The sheer scale of this shift is already reshaping global infrastructure, supply chain demands, and the logistics strategies required to support complex, capital-intensive energy projects.
Fatih Birol, Executive Director of the IEA, emphasized that energy security is now a leading factor in investment decisions. “Amid the geopolitical and economic uncertainties that are clouding the outlook for the energy world, we see energy security coming through as a key driver of the growth in global investment,” Birol noted.
Image: IEA
The report also reveals how China has surged ahead of all other nations in terms of energy spending. In 2015, China’s investment slightly surpassed that of the United States. Today, it spends nearly as much as the U.S. and the entire European Union combined. China’s share of global clean energy investment has climbed from 25% to nearly one-third in a decade, reflecting its strategic push into solar, wind, hydropower, nuclear, electric vehicles, and battery storage.
For project logistics operators, these long-term investments mean more cargo movements tied to renewable infrastructure—from large-scale solar farms in Asia to offshore wind farms in Europe and beyond. The logistical challenges surrounding the transport, installation, and maintenance of this equipment are already prompting changes in fleet capacity planning, port infrastructure upgrades, and heavy-lift equipment availability.
Solar photovoltaic (PV) is leading the charge. Investment in utility-scale and rooftop solar is expected to reach $450 billion this year, making it the single largest component of global energy spending. That growth is translating into soaring demand for solar panel shipments, inverter units, and mounting systems—core cargoes for breakbulk and project freight specialists.
Image: IEA
Battery storage, a vital piece of the clean energy puzzle, will also see significant funding, surpassing $65 billion in 2025. This surge further increases demand for specialized handling and warehousing of sensitive lithium-ion battery units, requiring compliance with strict safety regulations during transit.
Electricity infrastructure as a whole is gaining momentum. A decade ago, investments in fossil fuels outpaced electricity-related spending by 30%. This year, investments in electricity—including generation, grids, and storage—are projected to be 50% higher than in oil, gas, and coal combined.
However, the report warns that power grids, currently receiving $400 billion annually, aren’t keeping pace with generation investment. This disparity threatens electricity reliability, especially as more regions shift toward electrified solutions. For logistics players, that translates into extended project timelines and complex procurement coordination for grid components like transformers and high-capacity cables—especially in markets where permitting delays and supply chain congestion remain persistent issues.
Despite a global tilt toward clean energy, coal has not been sidelined. China began construction on nearly 100 gigawatts of new coal-fired power in 2024, pushing global coal project approvals to their highest level since 2015. This has implications for bulk cargo shipments and port throughput in regions doubling down on domestic coal supplies.
Meanwhile, upstream oil investment is projected to decline 6% in 2025—the first drop since the 2020 pandemic slump—mainly due to reduced spending on U.S. tight oil. In contrast, liquefied natural gas (LNG) continues to attract strong capital, with new facilities under construction in the U.S., Qatar, Canada, and other countries. Between 2026 and 2028, the world’s LNG capacity will grow more than in any prior period.
This pipeline of LNG terminals is already driving demand for heavy-lift vessels, cryogenic storage tanks, and specialized transport equipment—critical elements of the global project freight sector. From fabrication yards to final terminals, the movement of massive modules and specialized cargo is testing the limits of current project logistics capabilities.
Still, investment patterns remain lopsided. Africa, with 20% of the global population, accounts for just 2% of clean energy investment. Total energy investment on the continent has fallen by one-third in the last decade. The IEA stresses that closing this investment gap will require international public finance to play a catalytic role in mobilizing private capital.
To aid transparency and strategic planning, the IEA’s new data explorer tool allows stakeholders to compare investment trends across technologies and regions, covering periods from 2016–2020 and 2021–2025. This will offer valuable insights for logistics professionals assessing market entry, capacity deployment, and supply chain risk in key regions.
The implications of this year’s investment surge are clear: whether it’s renewable megaprojects or LNG infrastructure, the global energy transition is not just reshaping power systems—it’s redrawing the project logistics map for years to come.
Source: IEA
