The transition to clean energy is well underway and will continue. New industrial policies and climate regulation continue to advance the move towards global low carbon energy. The transition is now not only well-established, it will continue to grow and accelerate.
Energy has become a critical factor in geopolitics, as evidenced by the energy crisis and exacerbated by the lasting effects of the pandemic. While immediate pressures in energy markets have eased, the risk of further disruption persists. The rethinking of national energy strategies and a focus on energy security has seen the sector increasingly subject to state involvement.
Governments recognise that energy demand will increase significantly in both the short and medium term due to electrification of transport and industry, the build out of data centres and increasing global temperatures. Determining how to achieve clean energy, meet future demand, ensure energy security and facilitate economic growth is a big challenge for governments worldwide.
Globally, government policies, regulations and incentives are aimed at increasing investment in a range of low carbon energy projects. Policy and regulation is also driving fossil fuel investment in climate mitigation technologies.
This has already fuelled a big shift towards clean energy spending in recent times but much more investment is needed to get to net zero. Challenges in unlocking even more private capital for clean energy projects and technology vary to some extent between sectors but supply chain pressures, demand risk, immature markets and evolving policy frameworks remain in the spotlight.
To dive into how these themes and many more are reflected in the outlook for 2025, read more in our annual Energy & Infrastructure Legal Outlook.
