Green Energy Transition Fuels Global FDI Boom, with Billions Pouring into Hydrogen and Renewables

A global rush to secure leadership in the green energy transition is unlocking tens of billions of dollars in foreign direct investment, reshaping economies and supply chains from Africa to Latin America. Recent announcements reveal a surge in capital flows into large-scale hydrogen, solar, and critical minerals projects as nations position themselves for a decarbonized future.

In a landmark move, Morocco has secured a $35 billion investment commitment for its green hydrogen projects, positioning the North African country as a potential global hub for renewable energy, according to a report from Discovery Alert. The investment, which represents approximately 25% of the nation’s annual GDP, involves five large consortiums with European energy firms. In February 2026, significant progress was made with the signing of investment agreements and preliminary land reservations for the massive undertakings.

This trend of large-scale green investment extends globally. The governments of Turkey and Saudi Arabia have inked a 5GW renewable energy agreement, with an initial $2 billion investment for 2GW of solar power in Turkey’s Sivas and Karaman provinces, as reported by Solarbe Global. Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, called the deal one of the “most significant examples of direct foreign investment” in the sector, noting it will be realized entirely through external financing. The agreement also boosts local industry by stipulating that 50% of solar plant components will be manufactured in Turkey.

Meanwhile, Nordic investors are deepening their push into Latin America, targeting the region’s rich natural resources for renewable energy projects, reports White & Case LLP. Driven by the newly signed EU-Mercosur Partnership Agreement, firms from Norway, Finland, and Denmark have made substantial investments in green hydrogen and ammonia projects in Brazil and Chile.

Underpinning this energy transition is a parallel race to secure the necessary raw materials. In Southern Africa, both South Africa and Namibia are advancing significant legislative overhauls to attract FDI into their critical minerals sectors, according to Cliffe Dekker Hofmeyr. Namibia is set to introduce a new Minerals Bill in February 2026 that formalizes requirements for local processing, part of a strategy to become a regional mineral-processing hub explicitly linked to its own developing green hydrogen sector. These legal reforms are seen as essential for aligning with the soaring global demand for minerals crucial to the energy transition.