US Investment in Global Renewable Energy Is Shrinking
NEWTON, Massachusetts — BloombergNEF is dedicated to industry trend analysis, combining expertise with advanced technical modeling and providing financial, economic and policy implications of industry movement. The 2H 2025 Renewable Energy Investment Tracker by BloombergNEF estimated that a record-setting $386 billion was invested into new global renewable energy development in the first half of 2025. It represents a 10% expansion in investment from 2024. Conversely, U.S. investment in international renewable energy declined by approximately 36% from the second half of 2024 to the same period in 2025. Research suggests that U.S. investors are trying to “recalibrate to the region’s changing [renewable energy]policy landscape” under the new presidential administration.
Investment Is Changing
In the first half of 2025, the global market in renewable energy development shifted dramatically. Utility-scale solar photovoltaic investment dropped 19% from 2024 to the first half of 2025. Asset finance for utility-scale solar PV and onshore wind declined 13% during that period. Markets that experienced higher levels of government support had higher rates of utility-scale solar investment.
This indicates that such expenditure is limited to countries whose governments can either afford to develop or have the support to do so. Offshore wind significantly contributed to the global industry’s growth with $39 billion invested in 2025, surpassing the $31 billion invested in 2024.
The Global Stage
According to the International Energy Agency’s (IEA) annual World Energy Investment report, solar photovoltaic is “attracting more capital than any other technology.” Furthermore, global investment in energy is on track to reach $3.3 trillion by the end of 2025. Global investment in renewable energy technology is estimated to reach $2.2 trillion. Meanwhile, oil, natural gas and coal investment is expected to reach only $1.1 trillion. Renewable energy technology is increasingly absorbing larger portions of the energy market.
The decreased U.S. investment in global renewable energy resulted from a $20.5 billion cut in committed spending in 2025. This marked the largest drop among the world’s major economic regions. Investors pulled back because of policy implications from the changing administration. This forced U.S. developers to rush projects by the end of 2024 amid the looming closure of government-provided incentives and support.
In 2025, U.S. industry members further slowed investment under the threat of losing tax credits. The Trump administration targeted Biden’s 2022 IRA and instability grew from tariff uncertainty. Compared to the second half of 2024, the EU-27 increased investment in renewable energy by $30 billion or 63%. According to BloombergNEF’s team, this suggests to researchers that investors are “reallocating capital out of the U.S. and into Europe.”
Markets in Southeast Asia experienced a 7% increase in investment. In comparison, small markets in Latin America “gained their largest share of regional investment to date.” Mainland China remained the largest shareholder of new global investment in renewable energy during the first half of 2025, holding 44% of the market. According to BloombergNEF’s data, investment in mainland China stagnated slightly between 2024 and 2025.
Unexpected Growth and the Future
When the IEA released the first World Energy Investment report in 2015, mainland China barely surpassed the U.S. in energy investment. The total global investment for fossil fuels was 30% higher than that for electricity. In the 2025 report, China leads global energy investment at almost the combined rate of the EU and U.S. electricity investments. These are estimated to finish 50% higher than those in oil, natural gas and coal that year.
According to IEA, Latin America and Caribbean (LAC) countries are “prone to high debt, high inflation and fiscal issues.” This has contributed to a low rate of GDP expansion and may explain the relatively low energy investments in the last decade. Still, almost half of the 33 LAC nations pledged to have net-zero emissions by 2050. In 2024, 60% of LAC’s power sector was renewable energy, almost twice the world’s average.
Investment in offshore wind is accelerating in Brazil and Colombia, with energy storage investment increasing in Chile. Efforts must continue addressing the region’s risks, prospects and capital costs to attract more investment. IEA reported in June 2025 that “amid the geopolitical and economic uncertainties” currently “clouding” the future of global energy, companies and countries “seek to insulate themselves from a wide range of risks.” IEA thus identified energy security as a “key driver” of global investment growth.
Global oil and gas spending seems to concentrate in the Middle East. The global energy market is clearly changing and the retracting presence of U.S. investment in global renewable energy and renewable energy technology makes space for other nations, both large and small.
– Shea Dickson
Shea is based in Newton, MA, USA and focuses on Business and New Markets for The Borgen Project.
Image: Pexels