Across Europe, energy and fuel prices are skyrocketing. The war in Iran shows once again how fragile and dependent our global energy system is. A lesson that Europe had to learn during Russia’s war of aggression in Ukraine.

And apparently successful. Because Europe is investing more in clean energy than ever before. In 2025, a total of 583 billion US dollars flowed into the energy transition – a whopping 19 percent more than in the previous year. This is the conclusion reached by the research company Bloomberg New Energy Finance (BNEF) in its new report “Energy Transition Investment Trends 2026”.

The direction is also striking: Europe is now investing 3.5 times as much money in clean energy as in fossil projects. The balance in the energy system is shifting noticeably – away from oil and gas and towards electricity from wind, sun and new technologies.

Germany leads Europe’s energy transition investments

Germany in particular sets standards: With $148 billion in investments in 2025, the country is not only Europe’s largest market, but is also actively driving forward the energy transition.

• Onshore wind projects received around 40 billion dollarsnearly quadrupling since the 2022 permitting reforms.
• Private battery storageoften combined with photovoltaics on house roofs five billion dollars of investments and show how much self-sufficiency with solar power is growing.
• At the Network expansion Germany is in third place worldwide, supported by four new high-voltage direct current lines and Investments of around 15 billion dollars.
• Heat pumps boom: With just under 300,000 installs In 2025, they surpassed fossil heating systems for the first time – a clear signal of the increasing demand for green energy.

Growth drivers in Europe

What is actually driving this boom? Three energy transition players in particular stand out: offshore wind, power grids and electric cars.

Offshore wind energy is growing particularly strongly – investments here have increased more than fivefold within a year. At the same time, more and more money is flowing into the electricity grid: Around $105 billion will be invested in 2025 to bring the growing share of wind and solar power into the system and distribute it.

But the biggest chunk comes from the street: electric cars. At $242 billion, electromobility is the most important individual area. Behind this are stricter climate requirements, government subsidies – and simply more and more affordable models.

Other future technologies are catching up, but are not yet in the top league. This includes carbon capture & storage, i.e. the capture and storage of CO2, or climate-friendly shipping. Money is increasingly flowing here, but compared to wind, grids and electric cars, the volume remains manageable.

There is also a clear trend that is exciting: more and more money is moving to the demand side. Specifically, this means that technologies that reach consumers directly – such as electric cars or heat pumps – now attract almost as much capital as the expansion of power plants and networks. The energy transition is no longer just taking place in the background, but is increasingly taking place in people’s everyday lives.

What is the rest of the energy world doing?

Europe is currently doing surprisingly well in global competition – at least in terms of speed. While investments here grew by 19 percent in 2025, the momentum in the USA and China has recently lagged noticeably behind.

In the USA, the Inflation Reduction Act in particular is causing movement. Billions in subsidies are flowing into the development of our own green industry – from batteries to hydrogen. This strengthens domestic production in the long term, but ties capital heavily to industrial projects. US investments in renewable energies have recently fallen by three percent.

Europe wants to close the gap

Europe, on the other hand, benefits from clear political and economic pressure: to reduce its dependence on fossil energy imports. Since the war in Ukraine, the energy transition here is no longer just climate policy, but also a question of security of supply.

But the energy transition is not a sure-fire success. Although record investments are being made in wind, sun, grids and electromobility, industrial production is lagging behind global demand. Battery production, hydrogen plants and other key technologies still need to be expanded significantly in order to meet demand in the next few years.

Nevertheless, the numbers show one thing clearly: Europe is on the rise. With almost a quarter of global investment in renewable energy and stable financing flows via credit and capital markets, the energy transition is increasingly becoming mainstream in the economy.

The trend is clear: those who invest in clean energy in Europe today are not only shaping the climate future, but also the energy independence of tomorrow.