In 2025, global clean energy experienced strong growth, but US policy headwinds became a concern.

Global Clean Energy Strong Growth in 2025, US Policy Reversal a Concern

Global clean energy continued its strong growth momentum in 2025, but the US energy policy shift toward fossil fuels has cast a shadow over global decarbonization efforts. According to the *Statistical Review of World Energy* jointly released by the Energy Institute with Ember, KPMG, and Kearney, renewable energy became the largest source of total energy supply (TES) growth for the first time, a milestone achieved outside of an economic recession.

Industry Background

The global energy system is undergoing a profound transformation. Although fossil fuels still account for 86% of TES, the incremental contribution from renewables has surpassed all fossil energy sources. In 2025, global TES grew by 1.7%, with all major energy supplies reaching record highs. Solar power performed particularly well, accounting for over 70% of the 3.3 exajoules (EJ) in renewable energy growth. In comparison, oil and gas contributed 2.5 EJ and 2.4 EJ respectively, while coal only increased by 1.1 EJ.

The transformation of the power sector is accelerating. In April 2025, wind and solar power generation exceeded natural gas for the first time, accounting for 22% of global electricity generation compared to natural gas's 20%. This trend indicates that renewable energy is becoming the mainstay of the power system.

Current Development Dynamics

Clean energy growth is primarily driven by solar power. Global solar installed capacity continues to rise, with falling costs and policy support being the main drivers. Wind power projects are progressing steadily, with offshore wind making advances in Europe and Asia. Energy storage deployment is accelerating to balance the intermittency of renewable energy.

However, a clear reversal is evident in the US policy environment. After President Trump took office for a second time, the US quickly withdrew from the Paris Agreement, cut renewable energy subsidies, and relaxed fossil fuel regulations. According to Wood Mackenzie research, 7 gigawatts (GW) of renewable energy projects on federal land were cancelled or shelved in 2025, with another 92 GW at risk due to increased government scrutiny. The total affected investment exceeds 121 billion US dollars, covering solar, wind, and energy storage.

At the same time, the US passed the "One Big Beautiful Bill Act," adding nearly 40 billion US dollars in federal subsidies to support oil, gas, and coal, with an additional 4 billion US dollars annually over the next decade. Existing fossil fuel subsidies already exceed 30 billion US dollars per year. As a result, US liquefied natural gas (LNG) exports increased by 27%, coal consumption rose by 10%, and oil production reached 21.1 million barrels per day, nearly equaling the combined output of Russia and Saudi Arabia.

Global energy-related carbon dioxide emissions still rose by 1.1%, reaching 35.8062 billion metric tons. The US contributed over one-third of the emissions increase, at 152.3 million metric tons, four times that of China. Over the previous decade, US emissions had been declining by an average of 0.7% annually, but this trend has now reversed.

Impact on the Energy SystemThe shift in U.S. policy has multiple impacts on the global energy transition. First, as the largest economy and a major emitter, the U.S. expansion of fossil fuels directly increases global carbon emissions, undermining the likelihood of achieving the Paris Agreement goals. Second, risks to renewable energy investments have risen, with $121 billion in projects under threat, potentially delaying technology deployment and cost reductions. Furthermore, the surge in U.S. LNG exports is reshaping the global natural gas market, affecting energy import dependencies in Europe and Asia.

However, clean energy development in other parts of the world has not stalled. China, the European Union, and India continue to advance renewable energy installations. The International Energy Agency (IEA) previously forecast that global renewable energy capacity could double by 2030, and this target remains achievable.