Global investment in new renewable energy projects hit a record $386bn in 1H2025, up 10% from the previous year, according to BloombergNEF (BNEF). However, asset finance for utility-scale solar and onshore wind fell 13% from 1H2024, the lowest share since 2006.  

According to the data, utility-scale solar photovoltaic (PV) investment was particularly hit, falling 19% compared to 1H2024. The markets that saw the largest year-on-year declines in investment – including mainland China, Spain, Greece and Brazil – have seen rising curtailment and greater exposure to negative power prices, signalling that concerns over revenue were paramount for investors. Utility-scale solar investor activity was stronger in markets with supportive government auctions or strong corporate energy demand.

The report finds that spending on small-scale solar made up for the drop in financing towards larger projects as these projects are quick to deploy and can be brought online ahead of significant policy shifts that impact revenues or returns. For instance, in mainland China small-scale solar investment nearly doubled year-on-year while utility-scale solar installations fell 28% ahead of a regulatory change that now exposes renewables to volatile power prices.

Offshore wind also contributed to the record investment volume, attracting $39bn in 1H2025, exceeding 2024’s total of $31bn investment. Asset financing for the sector is driven by large projects and the schedule of government auctions, meaning sizeable swings in investment over time is quite natural. Elevated project costs outside mainland China also contributed to the rise.

‘Renewable energy investors and developers are rethinking capital allocation and putting their money where project returns are strongest,’ notes Meredith Annex, Head of Clean Power, BNEF. ‘The decline in utility-scale solar and onshore wind financing during 1H2025 is taking a toll on project pipelines and likely will continue to do so.’

Of all major regions, the US saw the greatest drop in new renewable energy investment in 1H2025, with committed spending down $20.5bn (36%) from 2H2024. This reflects the industry’s response to the 2024 US federal elections, as developers rushed to begin construction towards the end of last year, to lock in access to tax credits, and then slowed activity in 1H2025 due to deteriorating policy conditions, particularly for wind, and growing tariff uncertainty.

In contrast, the EU-27 saw investment in 1H2025 rise by nearly $30bn, or 63%, compared to 2H2024. These numbers support the idea that companies are reallocating capital out of the US and into Europe – particularly in offshore wind, where several developers refocused to North Sea sites over US projects.

Southeast Asia and Latin America also posted modest gains, while China retained a 44% global share.

Multilateral development banks (MDBs), meanwhile, provided a record $137bn in global climate finance last year – a 10% increase alongside $134bn in mobilised private capital, according to the latest joint report led by the European Investment Bank.

The report finds that last year, $85.1bn of MDBs’ climate finance was for low- and middle-income economies. Climate finance in these countries has more than doubled over the past five years and increased 14% on the year. Of this sum, 69% – or $58.8bn – went to climate change mitigation and $26.3bn, or 31%, to climate change adaptation. The amount of mobilised private finance for climate investments in these countries stood at $33bn.

In 2024, MDBs’ climate finance for high-income countries totalled $51.5bn, of which $46.5bn (90%) supported climate change mitigation and $5bn (10%) supported adaptation. In addition, mobilised private finance for climate investments in high-income countries reached $101bn.

At COP29 in Baku, MDBs set out financial commitments to help countries achieve ambitious climate results. By 2030, they pledged to provide $120bn/y in collective climate finance for low- and middle-income countries, including $42bn for adaptation while mobilising an additional $65bn/y from the private sector. For high-income countries, MDBs project $50bn/y in climate finance by 2030, including $7bn for adaptation, alongside a further $65bn in mobilised private finance.

These commitments will be central to COP30 negotiations in Belém this November, where countries will refine pathways to scaling climate finance to at least $1.3tn/y by 2035. MDBs are also working to enhance transparency through digitalisation initiatives to make climate finance data more accessible and user-friendly.