European energy transition investment rose to a record $583bn (£431.3bn) in 2025, up 19% year on year and growing faster than in both the US and China.
BloombergNEF’s latest Europe investment trends report says Europe’s spending rebound was driven by electrified transport, offshore wind and power grids, despite rising concerns over transition affordability and industrial competitiveness.
The EU accounted for 78% of total European investment, while the UK made up almost 15%. Germany remained the region’s biggest market at $148bn (£109.5bn), or just over a quarter of the total, while Poland recorded the fastest year on year growth after investment there nearly tripled to $32bn (£23.7bn).
Electrified transport was the single largest segment, rising 23% to $242bn (£179.0bn). Renewable energy investment recovered to $162.5bn (£120.2bn), helped by a fivefold surge in offshore wind financing, while power grid spending climbed to $105bn (£77.7bn) as operators rushed to connect more renewables and ease network constraints.
Clean energy supply investment exceeded fossil fuel supply spending by $210bn (£155.4bn) in 2025, with clean supply capital running around 3.5 times higher than fossil fuel investment.
The report added that continued disruption to oil and gas markets could push consumers and governments further towards solar, batteries and electrification in the years ahead.
Copyright © 2026 Energy Live News LtdELN