Record Energy Investment in 2025: A Shift Towards Clean Technologies Amidst Global Challenges

Energy in Demand News, June 8-9, 2025

Global energy investment is projected to reach a record $3.3 trillion in 2025, despite facing challenges such as heightened geopolitical tensions and economic uncertainty, according to a new report by the IEA. Notably, clean energy technologies are expected to attract twice the amount of capital compared to fossil fuels. Investment in clean technologies—which include renewables, nuclear, grids, storage, low-emissions fuels, efficiency, and electrification—is on track to achieve a historic $2.2 trillion this year. This figure is double the anticipated investment in fossil fuels for 2025.

The IEA predicts a 6% decline in spending on oil production this year, while overall expenditure on fossil fuels is expected to decrease by 2%. Fatih Birol, the executive director of the IEA, noted, “This is the first time we have seen such a decline, except for Covid, due to lower prices and decreased oil demand.”

In other developments, Union Investment, a German asset management firm, has divested all its holdings in the US oil giant ExxonMobil, citing the company’s “insufficient commitment” to climate targets. Henrik Pontzen, Union Investment’s head of sustainability, emphasized, “As part of our climate strategy, we require all companies to commit to long-term, comprehensive climate targets. If a company fails to even set such targets, we see no basis to assume it will achieve them.” Union Investment is not subject to pressure from the US government, as it has “no American clients, no subsidiaries there, and is not dependent on US government contracts.”

David Sanger of the New York Times highlighted the challenging environment for experts in Washington, noting that the Environmental Protection Agency has shifted from scientific inquiry to self-protective measures. One scientist, who wished to remain anonymous, mentioned, “We’ve taken the words ‘climate’ and ‘green energy’ off every project document.”

CNN has reported that experts suspected of sharing information off the record are increasingly being subjected to lie detector tests.

In a concerning report, leading climate scientists have accused politicians in New Zealand and Ireland of employing an “accounting trick” to support their sheep and cattle industries, warning that this could hinder global efforts to combat climate change.

On a more optimistic note, a recent Euronews video showcases the EU’s record-low energy consumption, achieved through efficiency improvements and a surge in renewable energy.

For those planning travel in the upcoming weeks, consider these suggestions:
– Country Living Magazine lists three European train routes that will revolutionize travel in 2025.
– World Walks presents the best spring walks across Europe.
– For an enjoyable blend of hiking, food, and wine in Europe and Australia, visit the Hedonistic Hiking website.
– Cycling for Softies features the 15 Best Cycling Holidays in Europe for 2025.

Additionally, Turin, Italy, is entering a new phase, evolving from an industrial center into a vibrant tourist destination, having been named the European Capital of Smart Tourism 2025.

Reflecting on the thoughts of Adam Smith (1723-1790), a Scottish economist and philosopher known for his contributions to political economy, he stated, “To feel much for others and little for ourselves; to restrain our selfishness and exercise our benevolent affections, constitute the perfection of human nature.”

Energy in Demand invites your feedback on this week’s posts regarding the zero-carbon energy transition. This includes topics such as:
– Recent data from the EEA showing a slight increase in CO2 emissions from new cars registered in Europe in 2024.
– A call for an ‘energy savings first’ principle in Europe.
– A study on the diseconomies of scale.
– Concerns that mainstream media worldwide is not adequately preparing the public for the impacts of climate change.
– The potential of converting ocean currents into electrical power using turbines.
– The mandate for the vast majority of new homes in England to include solar panels.
– Insights from a new EEA briefing on the importance of water savings to enhance the EU’s water resilience.
– Highlights from an EU-funded project featuring three new platforms launched to assist homeowners.
– A review of progress made in the past year by the Music Climate Pact.

We welcome your comments on any of these topics. Please recommend Energy in Demand to your friends and colleagues, and if you know anyone interested in receiving this weekly update, have them contact us at energyindemand@gmail.com. Note that this newsletter is not available on the WordPress website.