Clean energy continues to dominate new power capacity. In 2024, more than 90% of all new electricity capacity worldwide came from clean sources such as solar, wind, hydro and geothermal. Yet even with this significant growth in renewable capacity, the world is still burning, and increasing its use of, fossil fuels.
Geopolitical turmoil and volatile markets are disrupting alliances and trade, creating new hurdles for the clean energy transition. Some countries are backtracking on climate commitments just as global electricity demand is soaring, putting pressure on power grids and making it harder to phase out coal, oil and gas. The biggest challenge now is meeting this growing demand with clean energy while taking fossil fuels offline. The good news is that a clean, abundant, affordable and reliable energy future is possible — if countries can close gaps in finance, policy and infrastructure.
Here, we unpack the latest data to show where the clean energy transition stands today — and where it may be headed next.
Global Energy Demand and Electricity Use Are Surging
Overall, global energy demand grew by 2.2% in 2024, outpacing the average annual growth rate of 1.3% from 2013 to 2023.
Global electricity demand is rising even faster, with a projected increase of 4.5% in 2025 over 2024, and is expected to grow at least 2.8% per year through 2030. The jump is driven by the global expansion of electric transit, economic growth and industrialization, and greater demand for cooling in developing countries. It’s also fueled by the rapid growth of data centers in the United States and other developed countries, which has upended years of flat or near-flat demand in those markets.
Global Investment in Clean Energy Is Outpacing Fossil Fuels
For the past 10 years, global spending on clean and renewable energy has been higher than investments in fossil fuels. While the pace of growth has shifted — slowing from a 17% year-on-year increase in 2022 to a 6% increase in 2025 — overall energy investment still reached a record of $3.3 trillion in 2025, with $2.2 trillion of that directed toward clean energy.
Emerging Markets Hold Big Opportunities for Clean Energy Investment
Energy demand is growing worldwide, creating investment opportunities across many countries. But financing is uneven: In 2024, emerging markets and developing economies received only 15% of global clean energy spending. The picture varies widely by region.
India, for example, saw strong growth, with total energy investment reaching a record $150 billion in 2025, including $101 billion for clean energy. Clean energy investment has been more level in Southeast Asia and Africa. In Latin America, investments fell from $81 billion in 2024 to $67 billion in 2025. Low- and lower-middle-income countries together received just 7% of global clean energy spending in 2022 — even though they are home to 40% of the world’s population.
With energy demand rising across emerging markets and developing economies, these regions represent a major opportunity for clean energy investment. Scaling up renewables now can help avoid long-term dependence on fossil fuels while making the most of the region’s abundant natural resources. Africa, for example, has about 60% of the world’s best solar potential but accounts for only 1% of global installed solar PV.
Clean Energy Is Creating More Jobs
Clean energy is not only helping cut emissions — it’s also becoming a major source of employment growth. The number of people working in clean energy worldwide rose from 30 million in 2019 to about 35 million in 2023, surpassing employment in the fossil fuel sector. Under current policies, clean energy could create 10 million more jobs by 2030, while the fossil fuel sector is expected to lose about 3 million.
The biggest job gains by 2030 are projected in electric vehicles and batteries (up 3.8 million jobs), power grids (up 1.5 million), solar energy (up 1.4 million) and energy efficiency (up 1.1 million). At the same time, the largest job losses are expected in internal combustion engine vehicle manufacturing (down 1.7 million) and in coal mining and supply (down 1.4 million).
Clean energy industries are facing labor shortages in many countries — especially for welders, electricians and other construction roles — which means significant investments in training and reskilling will be essential. Fossil fuel workers and communities will also need support to transition to new jobs.
Critical Minerals Are Key to the Energy Transition
Critical minerals such as copper, lithium, cobalt and nickel are essential for building clean energy technologies. They are used in wind turbines and solar panels, electric vehicle batteries and motors, power grids and more.
From 2023 to 2024, demand for lithium rose nearly 30%, while demand for nickel, cobalt and graphite increased 6% to 8%. If governments stay on their current energy and climate trajectory, demand for critical minerals could double by 2030.
Demand growth is significant because all mining has social and environmental impacts. While some are positive, such as economic development and job creation, concerns include worker safety, water pollution, biodiversity loss and other risks. Deep-sea mining also offers potential for exploration, but comes with unknown and possibly serious consequences for ocean ecosystems.
Although the global supply of many critical minerals is currently strong — even leading to lower prices in some markets — ensuring that supply grows responsibly, comes from diversified sources and keeps pace with long-term energy needs will be essential for a sustainable energy transition.
Grid Infrastructure Is a Barrier to Clean Energy Growth
Transmission and distribution, or T&D, is the system that moves electricity from power plants to homes and businesses. This network of power plants and power lines, often called the grid, carries electricity over long distances.
To meet global energy and climate goals, the total length of T&D infrastructure will need to double by 2050, from about 80 million kilometers of power lines today to 166 million kilometers — enough new lines to wrap around Earth more than 2,000 times.
Needs vary widely by region. Advanced economies will need to expand their grids by at least 50%, while emerging markets and developing economies will need to grow theirs by more than 150% by 2050.
Improving performance by modernizing and optimizing existing grid infrastructure is just as important as building new lines. Globally, about two-thirds of today’s grid will need to be replaced by 2050, since most components have an average lifetime of about 40 years.
More Electricity Grid Investment Is Needed in Emerging Markets and Developing Economies
Building and modernizing grids requires sufficient investment, especially in regions where demand is growing fastest.
Global grid investment has been rising since 2020 and is expected to exceed $410 billion in 2025. But that’s not enough. To meet climate and energy goals, annual investment will need to increase to about $600 billion by 2030.
Currently, advanced economies invest more in grids. But going forward, emerging markets and developing economies will need to account for a larger share of total grid investment.
Project Delays Can Slow Down Clean Energy Investments
Long timelines for siting and permitting — the key steps for approving a project — along with pushback from nearby communities are also delaying clean energy development. Permitting and land issues are among the biggest barriers to scaling up investment in Europe, India, sub-Saharan Africa and the U.S.
In the U.S., between 2016 and 2023, local zoning laws and community opposition were among the leading reasons wind and solar projects were canceled. Solutions such as proactively assessing land suitability can help minimize local conflicts and permitting delays, as can inclusive planning with affected communities and streamlined administrative processes.
The Path Forward for Clean Energy
The global energy transition is underway, with both bright spots and challenges. Clean energy adoption is accelerating, and investment is rising. Electricity demand is growing, and the choices made today about how to meet it will help determine the success of the transition. This moment offers an opportunity to reshape the global energy system into one that is clean, abundant, reliable and affordable.
But getting there will require more action. Key priorities include:
- Increasing investment to expand and upgrade transmission and distribution infrastructure.
- Streamlining regulations to speed up clean energy projects.
- Engaging local communities from the start to ensure project success.
- Scaling up training and education to close the clean energy skills gap and prepare the future workforce.
The clean energy system is complex and layered. But with coordinated efforts across finance, infrastructure and governance, the world can accelerate the low-carbon transition and move toward a future where clean energy is accessible to all.