Energy spending tops $405b as crisis-driven policy locks in, IEA says

It has more than doubled since 2019 after successive global shocks.

Global government energy spending surged past $405 billion in 2025—more than double 2019 levels—driven by pandemic-era measures and the energy crisis sparked by Russia’s invasion of Ukraine, the International Energy Agency (IEA) reported.

Even before the war in the Middle East this year and the major impacts on energy markets around the world, IEA said annual government energy spending was projected to remain near 2025 levels through 2030.

Governments have directed most spending towards long-term investments, including energy infrastructure, advanced manufacturing, renewable energy, energy efficiency, and incentives for fuel switching.

The report found that around $220b was spent on consumer support in 2022, with only about a quarter targeted at households most in need.

It said 30 countries, accounting for more than 40% of natural gas imports, expanded gas storage obligations after the 2022 energy crisis as part of emergency response measures.

Around one-third of tracked critical mineral policies have been introduced in the past five years, reflecting concerns over export controls and supply chain concentration in energy technologies.

The IEA reported a shift in policy momentum in 2025, including 15 countries that strengthened energy efficiency standards, adding that some governments introduced regulatory rollbacks and delays in road transport efficiency rules, which could affect future efficiency gains.

The agency said current energy market pressures linked to conflict in the Middle East could drive further policy changes.

It compared the current phase of policymaking with responses during the oil crises of the 1970s and said it will continue to track developments through its Global Energy Policies Hub.

The report tracks more than 6,500 policy measures and over 200 areas of energy policymaking in 2025, based on its Global Energy Policies Hub.

It links the surge in activity to successive global shocks over the past five years, which have increased government focus on energy security, resilience, and affordability.