Precious Anga
Lagos — Global investment in clean energy is set to reach a record $2.2 trillion in 2026, almost double the $1.2 trillion expected to flow into fossil fuel projects, according to the latest World Energy Investment report by the International Energy Agency.
The report highlights a major shift in global energy priorities, with governments, investors and businesses increasingly directing capital towards renewable energy, energy efficiency and low-carbon technologies amid growing concerns over energy security, geopolitical instability and climate change.
Of the projected $3.4 trillion global energy investment this year, nearly two-thirds is expected to be channelled into clean energy projects, underscoring the accelerating transition away from traditional fossil fuels.
Analysts say ongoing geopolitical tensions, including disruptions linked to the Russia-Ukraine conflict and instability in key oil-producing regions, have reinforced the appeal of renewable energy sources such as solar and wind power.
Unlike oil and gas, renewable energy resources cannot be disrupted by international conflicts or supply chain blockades, making them increasingly attractive to countries seeking greater energy independence.
The IEA estimates that clean energy deployment and efficiency improvements helped the world’s five largest fuel-importing regions avoid about $260 billion in fossil fuel import costs in 2025 alone, highlighting the growing economic benefits of renewable energy investments.
Another major driver of investment growth is the rapid expansion of artificial intelligence and data centres, which are expected to significantly increase electricity demand over the coming decade.
New projections indicate that energy and water consumption by data centres could double by 2030, forcing governments and companies to accelerate investments in power generation and grid infrastructure.
In the United States, electricity demand from AI-related data centres is forecast to triple by 2035 compared to 2024 levels, providing additional momentum for renewable energy development.
Emerging economies are also playing a growing role in the clean energy boom as declining technology costs make renewable projects increasingly competitive with conventional energy sources.
However, industry experts warn that investment growth remains vulnerable to policy uncertainty in major markets such as the United States and China, where changes in government support mechanisms have created periods of rapid expansion followed by temporary slowdowns.
Despite continued government subsidies for oil, gas and coal projects globally, clean energy continues to attract the largest share of new investment, signalling a broader transformation of the global energy landscape.
The latest figures suggest that the world is gradually shifting from an energy system dominated by hydrocarbons towards one increasingly powered by electricity, renewable energy and advanced technologies.
While oil and gas remain critical to global energy supply, investment trends indicate that clean energy is becoming the preferred pathway for improving energy security, reducing costs and supporting long-term economic resilience.
