Despite the US’s formal exit from the Paris Agreement and policy uncertainties, global investment in clean energy reached a record US$2.3 trillion in 2025, indicating resilient private sector confidence in decarbonisation efforts worldwide.
The United States’ formal exit from the Paris Agreement on 27 January has renewed global attention on the political fault lines surrounding climate policy. President Donald Trump’s second withdrawal of the country from the landmark accord marks the U.S. as the only nation to have left the pact twice, a move that critics say risks undermining international cooperation while proponents frame it as asserting national policy autonomy. According to reporting by The Guardian and Associated Press, the administration has simultaneously signalled intent to sever ties with the UN Framework Convention on Climate Change and a suite of multilateral environmental bodies, a step that could complicate diplomatic engagement on climate issues.
Yet the headline political development has not halted flows of capital into decarbonisation. BloombergNEF’s annual Energy Transition Investment Trends report shows global investment in the energy transition reached a record US$2.3 trillion in 2025, an increase of 8% on the prior year. Electrified transport accounted for the largest share, with US$893 billion directed to electric vehicles and charging infrastructure; renewables and grid spending were also major components, at US$690 billion and US$483 billion respectively. Renewableinstitute.org’s coverage of the BNEF report underlines that clean energy supply investment outpaced fossil fuel supply for the second consecutive year, widening the gap to US$102 billion.
The investment picture is nuanced. Clean energy spending, covering renewables, nuclear, carbon capture, hydrogen, storage and grids, continues to grow but at a slower pace than during the post-pandemic surge; BNEF records a step-down in global growth from 27% in 2021 to 8% in 2025. Analysts attribute the moderation to maturing markets, falling technology prices and shifting policy dynamics in major markets. BNEF also notes that investment in oil and gas and fossil-fuelled power fell for the first time since 2020, though rising spending on natural gas and coal partially offset those declines.
Regional dynamics matter for industrial decarbonisation strategies. The Asia-Pacific region remained the largest destination for transition capital, absorbing 47% of global investment in 2025, with China the single largest market. However, BloombergNEF flagged a contraction in China’s renewables investment amid domestic policy adjustments, even as the country continued to dominate supply-chain investments in solar, batteries, electrolysers and wind equipment. Reporting in Le Monde highlights China’s rapid deployment of wind and solar capacity and its deep vertical integration across clean-technology manufacturing, noting the country added exceptionally large volumes of new capacity in 2025 and has become the primary engine for global cost reductions and technology scale-up.
Other markets showed divergent patterns: India increased investment by about 15% to US$68 billion, while the European Union expanded its transition investment by 18% to US$455 billion despite an unfavourable macro environment. The United States saw a moderate increase of roughly 3.5% to US$378 billion in 2025, indicating that, notwithstanding federal policy shifts, capital continues to flow into decarbonisation opportunities at home.
The supply-chain story is critical for industrial decarbonisation practitioners. BNEF estimates that clean-energy supply-chain investment, factories for components, battery metals production and processing facilities, grew 6% to US$127 billion in 2025. The expansion was concentrated in battery manufacture and materials, yet ongoing capacity additions are exerting downward pressure on equipment and material prices, a trend that benefits project economics but can compress returns for new entrants. BloombergNEF expects China to remain the principal investor in these upstream assets for at least the next three years.
Capital markets also reflected renewed investor interest. Climate-tech companies raised about US$77.3 billion in 2025 via private and public markets, a rebound after years of decline, while merger and acquisition activity in clean power and building technologies reached near-US$100 billion, driven in part by demand linked to data-centre expansion. Debt issuance for energy-transition projects climbed as well, with related bonds and loans hitting approximately US$1.2 trillion.
Global institutional assessments provide broader context for these flows. Two United Nations reports released in 2025 highlighted a decisive shift in power generation additions toward renewables, solar and wind accounted for the vast majority of new capacity, and showed the levelised costs of solar and wind had fallen substantially below those of fossil alternatives. However, the UN cautioned that the transition remains uneven, with developing regions facing persistent financing and capacity constraints.
For industrial players planning decarbonisation pathways, the juxtaposition of policy retrenchment in some jurisdictions with resilient private investment and rapidly falling technology costs presents both risks and opportunities. The near-term policy environment in the United States may create regulatory uncertainty for large-scale industrial electrification, hydrogen deployment and carbon-management projects, but market signals indicate continued investor appetite for assets that lower embodied emissions and provide operational resilience. Concurrently, the concentration of manufacturing capacity in China underscores the need for supply-chain risk management and for strategies that blend local sourcing, diversified procurement and investment in regional manufacturing capacity where possible.
The trajectory implied by BNEF’s five‑year outlook, an anticipated annual average of roughly US$2.9 trillion in energy-transition investment, suggests a sustained infrastructure build-out across transport electrification, grids, manufacturing and storage. For industrial decarbonisation professionals, the implications are clear: projects that align with the evolving cost curves of clean technologies, mitigate supply-chain exposure, and deliver verifiable emissions reductions are likely to attract capital even amid geopolitical and policy turbulence. At the same time, accelerating deployment in lower-income markets will require targeted public finance, concessional funding and international cooperation to avoid widening global disparities in access to clean energy.
- https://newtalk.tw/news/view/2026-01-29/1017468 – Please view link – unable to able to access data
- https://www.theguardian.com/us-news/2026/jan/27/trump-withdraws-paris-climate-agreement – On January 27, 2026, President Donald Trump signed an executive order withdrawing the United States from the Paris Climate Agreement for the second time. This decision makes the U.S. the only country to have withdrawn twice from the accord, which aims to limit global warming. The move has been criticised for potentially complicating global climate efforts and undermining international cooperation on climate change.
- https://www.renewableinstitute.org/global-energy-transition-investment-hits-record-2-3-trillion-in-2025/ – BloombergNEF’s annual ‘Energy Transition Investment Trends’ report reveals that global investment in the energy transition reached a record $2.3 trillion in 2025, an 8% increase from 2024. The largest investment drivers were electrified transport ($893 billion), renewable energy ($690 billion), and grid investment ($483 billion. The report also highlights that clean energy supply investment surpassed fossil fuel supply for the second consecutive year, with the gap widening to $102 billion.
- https://www.apa.az/america/un-confirms-us-notification-of-withdrawal-from-paris-agreement-459241 – The United Nations confirmed on January 29, 2025, that it had received official notification from the United States of its withdrawal from the Paris Agreement. According to Article 28, paragraph 2, of the Paris Agreement, the withdrawal will take effect on January 27, 2026. The UN reaffirmed its commitment to the Paris Agreement and support for efforts to limit the rise in global temperatures to 1.5 degrees Celsius.
- https://www.apnews.com/article/788907bb89fe307a964be757313cdfb0 – On January 20, 2025, shortly after being sworn in for a second term, President Donald Trump signed an executive order directing the United States to withdraw once again from the Paris Climate Agreement. This mirrors his 2017 decision to initially exit the accord, which aims to limit global warming to under 2°C above pre-industrial levels through voluntary emissions reductions. Trump justified the decision by criticising the agreement as misaligned with U.S. interests and economic values, arguing instead for an independent national approach to climate and energy policy.
- https://www.apnews.com/article/6aca4846e594ea8405f91edda39a03ad – Two new United Nations reports reveal a major turning point in global energy trends, with renewable sources like solar, wind, and hydropower becoming more affordable and widespread. In 2024, 74% of the global increase in electricity generation came from renewables, which accounted for 92.5% of all newly installed electric capacity. Solar and wind power now cost significantly less than fossil fuels—41% and 53% cheaper, respectively. Despite this progress, officials caution that the transformation to clean energy is uneven and slower than needed, especially in developing nations like those in Africa, which saw only 2% of new renewable capacity. High capital costs remain a barrier for the Global South.
- https://www.lemonde.fr/en/environment/article/2025/12/15/china-built-the-industrial-spine-of-the-global-energy-transition-by-leveraging-its-huge-domestic-market_6748494_114.html – At the COP30 climate summit in Belem, global leaders failed to set a clear fossil fuel phaseout timeline. However, China’s rapid energy transformation is already steering the global transition. From 2021 to 2024, China installed nearly as much wind and solar capacity as the rest of the world combined, surpassing its 2030 clean energy targets six years early. In 2025 alone, it added 210 GW of solar and 51 GW of wind capacity. Beyond scale, China’s transition represents a systemic shift, with major investments in ultra-high-voltage transmission, large-scale battery storage, and electrification of industry and buildings. Since 2023, electricity has become the dominant energy source in both industry and buildings, and EV expansion is beginning to erode oil dominance in transport. In the first half of 2025, clean energy met all new power demand, reducing fossil fuel use. China’s global influence is also evident through its dominance in clean tech manufacturing and innovation, controlling over 80% of clean energy patent filings in 2022. Its advancements – from high-efficiency solar panels to rapid EV charging – are making clean technologies more accessible globally. China’s trajectory suggests its emissions may have already peaked, signalling a shift toward structural decline.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article reports on the United States’ formal exit from the Paris Agreement on 27 January 2026, a move that has been widely covered in recent weeks. The BloombergNEF report on global energy transition investment in 2025, which reached a record $2.3 trillion, was published on 26 January 2026. The Newtalk article was published on 29 January 2026, indicating timely reporting. However, the article’s reliance on a single source for the BloombergNEF report raises concerns about source independence. Additionally, the article includes information about the U.S. withdrawal from the UN Framework Convention on Climate Change and other international bodies, which has been reported by multiple sources, suggesting a lack of originality. The presence of content from other news outlets without proper attribution further diminishes the article’s originality. Given these factors, the freshness score is reduced to 8.
Quotes check
Score:
6
Notes:
The article includes direct quotes from The Guardian and Associated Press regarding the U.S. withdrawal from the Paris Agreement and other international bodies. However, these quotes are not independently verified within the article, and no online matches for the earliest known usage of these quotes were found. This lack of verification raises concerns about the authenticity and accuracy of the quotes. Given these issues, the quotes score is reduced to 6.
Source reliability
Score:
5
Notes:
The article cites The Guardian and Associated Press, both reputable news organizations. However, the article’s reliance on a single source for the BloombergNEF report and the inclusion of content from other news outlets without proper attribution raise concerns about source independence and potential bias. The presence of content from other news outlets without proper attribution further diminishes the article’s reliability. Given these factors, the source reliability score is reduced to 5.
Plausibility check
Score:
7
Notes:
The article presents information that aligns with known events, such as the U.S. withdrawal from the Paris Agreement and the record global energy transition investment in 2025. However, the lack of independent verification for some claims and the inclusion of unverified quotes raise questions about the article’s overall credibility. Given these concerns, the plausibility score is reduced to 7.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents timely information on the U.S. withdrawal from the Paris Agreement and global energy transition investment trends. However, concerns about source independence, lack of independent verification for some claims, and the inclusion of unverified quotes raise questions about the article’s overall credibility. Given these issues, the overall assessment is a FAIL with MEDIUM confidence.
