The International Energy Agency (IEA) has released the final 2025 edition of its Energy Technology Research, Development, and Demonstration (RD&D) Budgets database, spotlighting consistent growth in public funding for clean energy innovation across member countries.
Public energy RD&D budgets rose by 1 percent in 2024 to reach an estimated USD 26.8 billion — marking the eighth consecutive year of increase. This sustained upward trend reflects a strong and ongoing global commitment to advancing energy technologies critical for achieving climate goals and supporting the transition to a low-carbon economy.
The data reveals that while growth is consistent across the board, national priorities vary. France, for example, allocated 45 percent of its public energy RD&D funding to renewable energy technologies over the past five years — significantly higher than the 11 percent average among IEA members. Such differences highlight how countries are focusing investment on strategic areas aligned with their energy transition goals.
The IEA emphasized that this growing investment landscape supports the development of emerging technologies, reinforces energy security, and enhances long-term sustainability. The RD&D Budgets database serves as a vital tool for tracking global progress, identifying funding trends, and informing energy policy and innovation strategies.
As clean energy challenges grow more complex, the IEA’s data underscores the importance of targeted and increasing RD&D investments to accelerate technology deployment and deliver next-generation energy solutions.
IEA has shared more details on the 2024 report on its website.
In 2023
In 2023, the United States led energy RD&D spending among IEA member countries, followed by France, Japan, the UK, Germany, and Canada. The EU’s Horizon 2020 and Innovation Fund budgets also ranked high, surpassing all but the U.S. and France.
France had the highest energy RD&D budget relative to GDP, at 1.07 per thousand units, followed by Spain at 1.00.
Over five decades, the focus of RD&D investments has shifted significantly. Nuclear energy’s share dropped from 76 percent in 1974 to 21 percent in 2023. Fossil fuel RD&D peaked in the 1980s–1990s but fell from 14 percent in 2013 to 5 percent in 2023.
In contrast, energy efficiency and renewables grew from 7 percent each in 1990 to 24 percent and 14 percent respectively in 2023. Hydrogen and fuel cells saw a steady rise, growing from 3 percent (2012–2018) to 9 percent in 2023.
GreentechLead.com News Desk