The financial choices shaping our energy futures

Globally, energy investment by governments, households and businesses is expected to reach a new high of $3.4 trillion in 2026. How this spending is allocated has major consequences for energy security, affordability and transitions around the world.

The IEA regularly tracks capital flows in the energy sector, identifying key trends and studying their impact. Analyses such as our flagship World Energy Investment report, published annually, explore how investors are assessing risks and opportunities across all areas of fuel and electricity supply, critical minerals, energy efficiency, research and development, and energy finance.

The Agency also supports governments and industry as they work to reduce barriers to investing in secure, affordable and clean energy. Our analysis is designed to enhance transparency around economic and financing trends, the cost of capital and profit dynamics. We also explore how capital markets and innovative financing instruments can drive greater investment in the energy sector – especially in emerging and developing economies, where data is often limited. 

While emerging and developing economies represent two-thirds of the global population, only 55% of energy investments are expected to go towards these markets in 2026. Though energy demand is growing the fastest in these countries, they face persistent barriers to accessing capital, including high financing costs tied to real and perceived project risks, and regulatory frameworks that may not fully support investment needs.

The IEA conducts extensive analysis to identify solutions to overcome these barriers and produces analyses outlining key actions that governments, development finance institutions and the private sector can take to boost financing for projects that support countries’ energy goals.

The IEA also conducts analysis on China’s role in global energy investment and financing, examining both its significant domestic investment in energy and its role as a provider of international energy finance. Recent work has assessed China’s official energy finance in emerging and developing economies, including the evolution of financing institutions and instruments and their implications for clean energy transitions.

Collaboration with partners in Southeast Asia and beyond is expanding through the establishment of the IEA’s Southeast Asia Regional Office, while the 2026 edition of the Southeast Asia Energy Outlook features a timely and comprehensive overview of investment trends in the region. In 2026, the IEA published new analyses on financing power system integration in Southeast Asia.  

Building on previous work to support governments in Africa, the IEA has published analysis on financing energy access and grid transmission across the continent. The Agency is also working closely with its partners to advance their national energy objectives – supporting Kenya’s development of an investment plan for the country's clean cooking strategy, for example, and working with Uganda to create a plan for financing the expansion of grid transmission.

The IEA produces analysis on a broad range of other energy investment topics to improve energy security, build resilient and sustainable energy systems, and expand energy access.

For more than 25 years, the IEA has conducted in-depth analysis on carbon markets – from compliance instruments, such as carbon taxes and emissions trading systems, to crediting mechanisms like carbon credit markets. The IEA also co-hosts the annual IEA-IETA-EPRI Workshop on Greenhouse Gas Emissions Trading[KS1] , bringing together policy makers, industry leaders and researchers to discuss the latest developments and trends in carbon markets and the energy sector.

Through partnerships between governments, corporates and the financial sector, transition finance aims to channel capital into areas where emissions are harder to abate. These efforts can unlock investment in projects that fall outside the “green finance” label but are nonetheless essential for secure and sustainable energy transitions.

Track the recent growth in energy investment through the World Energy Investment 2026 Datafile or explore the data further through our Investment Data Explorer.