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Why the growth of energy service companies is uneven globally
…driving project values from about USD 5.9 billion in the early 2010s to over USD 22 billion in 2024. Growth has been sustained by progressively tighter energy efficiency and emissions reduction requirements, alongside formal support for energy performance contracting.In the United States, which already had one of the most well-established ESCO markets, the Energy Act of 2020 accelerated market growth by requiring federal agencies to implement at least half of identified efficiency measures through performance contracting. This created stable public sector demand for ESCO services and nearly doubled the market compared with pre-2020 levels.Investment levels…
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The State of Energy Innovation 2025
…milestones. It identifies areas where new approaches to policy support are being developed to use public funds more effectively, but also highlights areas where more efforts are needed to address barriers to scale-up and attract private capital. The report includes focus chapters on three dynamic fields, namely diversification of battery mineral supplies, application of artificial intelligence to energy innovation, and development of carbon dioxide removal technologies. The analysis provides a data-driven foundation to inform policy makers, industry and other stakeholders on the state of energy innovation worldwide and the importance of sustaining innovation momentum over the long term.
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Financing CCUS at Scale
…effective risk allocation across the value chain.In this context, Financing CCUS at Scale is the IEA’s latest report on what it takes to move CCUS projects from the drawing board to operation. Building on expert interviews with leading financial institutions, the report investigates the distinctive economic and financial characteristics of CCUS projects, the impact of business models on commercial viability, and how CCUS projects have been financed to date. Based on these insights, the report provides targeted recommendations for policymakers on how to design policy, regulatory and financial frameworks that can more effectively crowd in private capital.The…
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World Energy Investment 2025 How we track investment in energy
…all time series and historical comparisons are presented in real 2024 US dollar terms, adjusted for inflation.This investment approach mirrors real-world practices and aligns with capital expenditure in financial reporting. In reality, time lags and varied spending occur between FID and project operation. Where possible, financial and energy performance metrics are included to better reflect asset turnover and capital commitment decisions. Other areas of spending – including operating and maintenance expenditures, R&D, financing costs, mergers and acquisitions or public markets transactions – remain important for energy sector development, and are analysed on a standalone basis in IEA investment work…
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Multiple Benefits of Energy Efficiency for Business
Energy efficiency is often described as the “first fuel” because the cheapest and most secure energy is the energy that is not used. For businesses, this begins with a straightforward benefit: lower energy bills. In many cases, efficiency investments can pay back quickly through reduced energy costs alone. However, the value of energy efficiency extends beyond energy savings.This report builds on the IEA’s work on the multiple benefits of energy efficiency and focusses on how these gains materialise in businesses. Key benefits range from productivity and product quality improvements to brand image or health benefits for employees and…
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Multiple Benefits of Energy Efficiency for Business Turning the opportunity into reality
…help identify, quantify and link these benefits to key performance indicators, often showing how they shorten payback periods.4. Position energy efficiency as a strategic investmentEnergy efficiency often competes for capital with other core business investments. Strategic objectives within companies often take precedence over simple payback calculations to determine investment decisions, as argued by the ’salience approach’ in multiple benefits research. They can be grouped in three dimensions: the value proposition (e.g. product quality and reliability), cost reduction (e.g. maintenance or defective products) and reduced risk (e.g. workplace safety).To position efficiency projects effectively, practitioners can…
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Gaining an Edge
…creation, energy efficiency helps firms compete amid high costs, growing demand, and rising trade pressures. In today’s global context, energy efficiency is not only a matter of energy policy, but also of economic policy.The report analyses historical progress in industrial energy efficiency and its role in enhancing industrial competitiveness. It includes comparisons of firm-level energy efficiency, identifying performance gaps and opportunities for further improvement. Drawing on a new IEA survey of 1 000 firms across 14 countries, it provides insights into industry perspectives. The report also highlights emerging opportunities in energy efficiency markets and offers recommendations for policymakers…
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World Energy Investment 2026 Regional dashboards
Despite the destabilising effect of the Middle East conflict, capital flows to the energy sector are expected to grow to USD 3.4 trillion in 2026, a 5% rise from 2025, mainly from China, the US, and the EU. Clean energy investment grows to USD 2.2 trillion, almost double that of fossil fuels. Investment in clean energy increases year-on-year by 7% in advanced economies and in China, while 4% in other emerging markets, reflecting regional differences with a shared focus on energy security.
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World Energy Investment 2025 Source, flows and destination of global energy-related investment spending
Most energy investment is supported by commercial finance and made by private sponsors, but the sources of finance vary widely by technology and region. Today, 75% of the available finance for investment in the energy sector is commercial finance, but domestic and international public finance play important roles that vary widely across regions and sectors.
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World Energy Investment 2026 How we track investment in energy
…the ongoing capital spending on assets. For some sectors, such as power generation, this investment is spread out evenly from the year in which a new plant or upgrade of an existing one takes a final investment decision (FID), i.e. when a project reaches financial close or begins construction) to the year in which it becomes operational. For other sources, such as upstream oil and gas and liquefied natural gas (LNG) projects, investment reflects the capital spending incurred over time as production from a new source ramp up, or to maintain output from an existing asset. For energy efficiency…