• Andreea Vasilescu, Partner |
3 min read

乐鱼(Leyu)体育官网

Energy transition is a major topic for countries throughout the world, as efforts are made to develop sustainable supplies to serve our needs in decades to come. 乐鱼(Leyu)体育官网 follows developments closely and in its latest Energy transition investment outlook survey听it has taken the pulse of top players in the field. The survey is based on the perspectives of 1,400 senior executives from 36 countries and territories and 11 sectors who are working in organizations that are actively investing in the energy transition.

This research is designed to offer energy transition investors, policymakers, energy-intensive businesses and energy industry participants a set of thought-provoking insights into current and future trends that impact these investments.听 听

Investment increasing despite geopolitical volatility and economic uncertainty

乐鱼(Leyu)体育官网

Despite recent geopolitical and economic challenges, 72% of investors believe that investment in energy transition assets is increasing rapidly. Investors are active across a broad and diverse set of opportunities 鈥� 64% have invested in energy efficiency technologies (including electrification) over the past two years. 56% have invested in renewable and low-carbon energy, 54% in energy storage and grid infrastructure and 51% in transportation and related infrastructure. This range highlights the breadth of opportunities for investors, as each area of interest involves many different systems and technologies.

Fossil fuels will still play a role in an orderly transition

乐鱼(Leyu)体育官网

In spite of the significant investments being made in clean energy, all credible forecasts see fossil fuels playing a steadily declining yet vitally important role in the energy mix over the next two decades, and only 25% of those surveyed are not making new investments in fossil fuel energy. Recent years have shown how fossil fuels (natural gas, in particular) remain crucial to energy security, and further investment will be needed to meet energy demand as the transition proceeds.听

Partnerships are key to risk management

乐鱼(Leyu)体育官网

94% of energy transition investors prioritize finding partners who can share risks. Collaborative approaches are vital to the success of energy transition projects, as they allow businesses to share risks, resources and expertise. Partnerships across various industries 鈥� and between public and private sectors 鈥� reduce risks, not only through reduced financial exposure, but also by combining different advantages, infrastructure, influence, relationships and expertise.听

Policy risks worry investors

乐鱼(Leyu)体育官网

However, many investors are concerned about regulatory or policy risks, which represent the top barrier to investing in energy transition assets. These risks are difficult for investors to manage, and the resulting uncertainty can delay or prevent capital flows from reaching energy transition initiatives. Stable, transparent and consistent regulatory environments can enhance long-term investment opportunities in clean energy and infrastructure.

The outlook: What do energy transition investors expect from the next two years and beyond?

乐鱼(Leyu)体育官网

The energy transition investment landscape is expected to grow significantly in the next two years, supported by expected easing interest rates, reduced material costs and favorable government policies. Energy efficiency, renewables and transportation infrastructure are seen as particularly attractive investment areas. However, grid integration and energy storage remain critical bottlenecks that must be addressed to fully capitalize on the potential offered by renewable energy.

The global energy transition represents one of the largest and most important investment opportunities of this century. To meet international climate goals, annual investment in renewable energy, efficiency, and supporting infrastructure will need to nearly triple by 2030. Investors are increasingly central to driving this change, financing the innovations and partnerships necessary to overcome regulatory, market and technological challenges.

How 乐鱼(Leyu)体育官网 in Romania can help

乐鱼(Leyu)体育官网

乐鱼(Leyu)体育官网 in Romania鈥檚 Energy Transition Advisory practice has a highly qualified team with considerable experience of supporting investors in navigating the rapidly evolving energy transition landscape. We offer a wide range of services and help clients to take advantage of the great opportunities which energy transition offers, as well as in addressing some of the challenges. We are part of the global network of 乐鱼(Leyu)体育官网 member firms, and help clients deploy capital effectively in both established and emerging markets.听

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today