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Energy Technology Perspectives 2026 Energy technology manufacturing and trade
…batteries, electric vehicles (EVs), electrolysers and heat pumps – dropped below USD 200 billion in 2024, down from nearly USD 220 billion in 2023. This downwards trend is estimated to have continued in 2025, mainly due to weaker solar PV and wind manufacturing investment in China. The United States and the European Union are estimated to have accounted for around 30% of global manufacturing investment combined in 2025, up from 15% in 2023, marginally increasing global supply chain diversification. After dipping in 2024, global trade in clean energy technologies recovered in 2025, with gross imports for relevant product categories reaching an all-time high in the second…
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Global Hydrogen Review 2026 Policy
…quota for public procurement, and a quota for low-emissions steel used in cars and vans to contribute to CO2 emissions reduction targets as part of the Automotive Package. By early June 2026, transposition of the EU Renewable Energy Directive into national legislation had been finalised in 13 member states for the transport sector, creating demand for more than 575 ktpa of low-emissions hydrogen.China announced a city clusters programme with a total funding of USD 1.1 billion, aiming to diversify hydrogen uses beyond cars and introducing targets for an end-use hydrogen price of USD 3.6/kg, striving for USD 2…
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World Energy Outlook 2025 Stated Policies Scenario
…gas (LNG) expansions in the United States and Qatar, then levels off. Coal demand peaks before 2030 as declines in China outweigh increases in India and Southeast Asia. From the 2030s, renewables in aggregate meet all additional global energy demand as they provide increasing amounts of generation in a rapidly expanding power sector. The renewables share in electricity generation rises from one-third today to over half by 2035 and two-thirds by 2050, led by solar and wind power with support from batteries. Grid upgrades and dispatchable sources are critical to maintain security. Nuclear output grows 40% to 2035…
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Energy Technology Perspectives 2026 Deployment of clean energy technologies, materials and fuels
Outlook Many clean energy technologies are increasingly cost-competitive and growing strongly. Their aggregate market value has grown 20% on average per year since 2015 to reach nearly USD 1.2 trillion. Some 80% of global solar PV and wind generation now occurs at lower levelised costs than for coal or gas. Battery prices have dropped 75% since 2015, pushing electric car sales to around 25% share in 2025. Deployment increases in all IEA scenarios: in the Current Policies Scenario (CPS), their global market value nearly doubles to around USD 2 trillion in 2035, greater than the oil market in…
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Gaining an Edge Opportunities in efficiency markets
…million jobs. Similarly, electric motors, a component present in a large number of technologies, have also shown remarkable growth. The global electric motor market grew significantly between 2020 and 2024, reaching a value of USD 145 billion in 2024. While the overall sector expanded steadily, some companies more than doubled their revenue over the same period. Energy efficiency technologies play an increasing role in global manufacturing, an innovative space with opportunities for start-ups and established industry Strong market and production capacity growth has begun shifting the overall landscape of industrial production towards clean energy and energy efficiency technologies. The…
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State of Energy Policy 2026 Climate pledges
…commitments made in April 2021 and December 2024, and this is reflected in the methodology and aggregate figures in this report. Countries accounting for around 85% and 45% of regional emissions in North Africa and the Middle East, respectively, also remain poorly covered by new NDCs. The annual pace of mitigation in the new NDCs is, in aggregate, not significantly higher than in the revised 2030 NDCs submitted around COP26 in Glasgow. The IEA estimates that the new round of NDCs implies global energy-related CO₂ emissions continuing to increase by an average of 0.4% per year from 2024 to 2035…
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World Energy Outlook 2022 An updated roadmap to Net Zero Emissions by 2050
…emissions from the energy sector ever recorded. This brought total CO2 emissions from the energy sector to 36.6 Gt in 2021. Recent investment in fossil fuel infrastructure not included in the 2021 Net Zero Emissions by 2050 Scenario would result in 25 Gt of emissions if run to the end of its lifetime (around 5% of the remaining carbon budget for 1.5 °C). At the same time, 2021 also saw renewables-based electricity generation reach an all-time high, a record more than 500 terawatt-hours (TWh) above the level in 2020. Key findings In 2021, the IEA published its report Net…
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Global Energy and Climate Model Announced Pledges Scenario (APS)
…this year, generally the period to 2035, will follow once there is a more complete picture of these pledges.The Announced Pledges Scenario (APS), introduced in 2021, illustrates the extent to which announced ambitions and targets can deliver the emissions reductions needed to achieve net zero emissions by 2050. In the WEO-2024, the APS includes all recent major national announcements as of the end of August 2024, both 2030 targets and longer-term net zero or carbon neutrality pledges, regardless of whether these announcements have been anchored in legislation or in updated Nationally Determined Contributions. In the APS, countries implement…
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State of Energy Policy 2026 Executive summary
Governments are navigating a sustained period of risks and disruptions In recent years, energy has been elevated to a core issue of national and economic security. Global supply chain disruptions after the Covid‑19 pandemic, Russia’s full-scale invasion of Ukraine, trade restrictions on key products including critical minerals, several years of extreme heat affecting energy systems and conflicts affecting major energy suppliers have unfolded in successive waves over the past five years. These events have brought long-standing energy security concerns back into sharp focus while exposing new vulnerabilities. They also highlight energy’s central role in geopolitics, with…
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Integrating Distributed Energy Resources in China Executive summary
…and commercial and industrial buildings. By 2024, distributed photovoltaics (DPV) accounted for 40% of the country’s total solar capacity, up from 30% four years earlier, while the stock of electric cars grew by more than 650% over the same period. This rapid deployment is reshaping China’s power system and placing increasing pressure on distribution networks to adapt.The speed of DER uptake has outpaced the readiness of the grid in several provinces. While China has succeeded in reducing and maintaining low curtailment rates over the past decade, localised grid constraints have emerged. In 2024, congestion and connection restrictions…
