Despite geopolitical headwinds and a ESG backlash in 2025, transition investment saw a record high of $2.3tn. New data published by research provider BloombergNEF shows an 8% rise in transition investments, year-on-year.
Transport electrification was the leading driver of investment, accounting for $893bn of the total. Investments into renewable energy were a close second ($690bn), followed by grids ($483bn).
“This past year has showcased that despite policy and trade headwinds, the global energy transition is resilient and provides a number of opportunities for investors”, commented BloombergNEF deputy chief executive Albert Cheung.
The gap between investments flowing into transition assets and fossil fuel assets is also widening. Fossil fuel investment, according to the data, fell by $9bn (year-on-year). This was the first drop in fossil fuel investment since 2020.
Consequently, investment into clean energy – a category which BloombergNEF extends to include nuclear and carbon capture technology – outpaced fossil fuel investment by $102bn.
Debt issuance for transition assets also increased – reaching a total of $1.2tn in 2025. That amounts to a 17% increase over the year.
“As many economies look to strengthen energy security and build domestic supply chains, clean energy investment will continue to rise, especially as it relates to global data centre buildouts”, Cheung adds.
Thematically, climate technology seems to have attracted a fair share of capital. BloombergNEF’s analysis shows that across public and private markets, climate-tech firms raised $77.3bn – led by companies in power, storage and transport segments. This follows three years of consistent declines in fund raising.
BloombergNEF’s interpretation of the numbers cites an improving investment outlook for transition assets bolstered by lower risk profiles and mature business models.
