The new analysis shows the switch from fossil fuel power sources is speeding up and financial support is growing.
Key insights from the Energising Tomorrow: Womble Bond Dickinson’s Global Energy Transition Outlook 2025 report include a significant improvement in access to capital. According to the data, 76% of energy suppliers have launched new transition projects this year as a result.
Efforts to decarbonise are ramping up thanks to strategic investments, while 85% of energy suppliers are actively embracing AI to improve the efficiency of their operations. Artificial intelligence now ranks as the most promising technology for the energy sector.
However, 45% of suppliers and investors say that permitting is the biggest material obstacle to long-term transition success, with concerns over regulatory issues now outweighing those relating to finance. 30% of respondents believe that phasing out government-backed incentives and grants will be problematic in the long run.
‘Our survey results showcase a global energy sector at a pivotal moment in the transition to cleaner energy. With improving financial conditions and a growing emphasis on decarbonisation for energy suppliers, investors, and commercial consumers, the energy economy’s commitment to climate change goals remains strong,’ said Jeffrey Whittle, Global Sector Leader – Energy & Natural Resources, at Womble Bond Dickinson.
‘However, while the short-term looks positive, more crucial work needs to be done – particularly in encouraging further government support to develop infrastructure and refine regulations,’ added Richard Cockburn, Womble Bond Dickinson’s UK Sector Leader – Energy & Natural Resources. ‘Amidst the ongoing narratives of geopolitical tension, supply chain challenges and evolving energy policy, it is more important than ever to de-risk investment and drive innovation to facilitate a climate resilient future.’
You can access the full report here.
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Image: Matthew Henry