Clean energy investment set to rise in 2026

The effects of the conflict in the Middle East are prompting businesses and countries to rethink energy investment strategies, according to a new report.

The International Energy Agency (IEA) forecasts global energy investment is projected to reach £2.5trn in 2026, a slight increase on last year, with spending on electricity systems and low-carbon technologies now accounting for a clear majority of capital flows.

Around $2.2 trillion is expected to go to grids, storage, low-emissions fuels, nuclear, renewables, efficiency and electrification in 2026, while around $1.2 trillion is set to be invested in oil, natural gas and coal.

Despite higher oil prices, oil investment is expected to decline for a third consecutive year in 2026, falling below $500 billion.

Gareth Redmond-King, Head of International at the Energy & Climate Intelligence Unit (ECIU) said the figures show that the in a tense geopolitical environment, the clean transition is maintaining momentum globally.

“That clean investment over the past few years is paying dividends, avoiding hundreds of billions in imported fossil fuel costs, as oil and gas from unstable regions drive price spikes right around the world.”