Overcoming hurdles, unlocking potential

Europe

Balancing security and sustainability Neil Golding, Director of Market Intelligence, EIC London

Across Europe, governments are focusing on creating a more resilient and greener energy system to support climate action goals. However, energy security remains a major consideration as the region looks to reduce its dependence on fossil fuels.

UK policy shifts

Government policy will be an enabler, and in some instances a disabler, for the energy industry. In the UK, the upstream oil and gas industry saw a significant decline in activity as the government raised taxation levels. This has led some operators to state that they will exit the UK Continental Shelf in the future, and others to put future developments on hold because they are no longer commercially viable. However, support remains for the cleantech sectors, including carbon capture, hydrogen and renewables. This comes not only in the form of subsidy and funding mechanisms, but also from the removal of barriers linked to the planning process.

European governments need to start identifying the gaps in the supply chain and working as one to fill them, rather than competing against one another Neil Golding, Director of Market Intelligence, EIC London

Renewables, hydrogen and the role of nuclear

The EU’s Renewable Energy Directive – mandating that 40% of energy comes from renewable sources by 2030 – is driving growth in solar, offshore and onshore wind. Hydrogen is being supported by funding from EU governments, but this alone will not grow the market. More effort is needed to develop the end-use market, which is lagging behind hydrogen production project growth. More emphasis has been placed on the development of an integrated grid, which will enhance resilience and reduce vulnerabilities.

Demand for gas will continue and Europe will need to continue to diversify its energy sources and increase its imports of liquefied natural gas from the US, Middle East and Africa. Support for nuclear is growing, as can be seen from the recent German election, and it could have critical role to play in the future energy mix as a clean source of base load electricity.

Strengthening supply chains for a greener future

All of this points to a tremendous opportunity for the European supply chain. However, China will remain a significant player in the production of solar panels, wind turbines and batteries. Europe will need to balance dependency on Chinese supply chains with boosting its own manufacturing capacity. European governments need to start identifying the gaps in the supply chain and working as one to fill these gaps, rather than competing against one another.

Companies that have the option to invest anywhere outside the UK will today be choosing to invest anywhere but the UK Martin Copeland, CFO, Serica Energy

To accelerate the deployment of green technologies, Europe requires continued government support, funding from both public and private sectors, a fully integrated grid and boosted manufacturing capacity.

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4,540 energy projects US$3.3tn CAPEX
US$1.03tn 1,300 energy transition*projects
US$888bn 2,348 mature renewables projects
US$509bn 539 oil and gas projects
US$890bn 353 power/large-scale nuclear projects
*Energy storage, floating offshore wind, hydrogen, carbon capture, biofuel/sustainable aviation fuel and nuclear (advanced modular reactors/small modular reactors)
Source: EICDataStream 2025–2030, March 2025

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Q Is UK energy policy driving investment away? Martin Copeland, Chief Financial Officer, Serica Energy

The regulatory and fiscal operating environment on the UK Continental Shelf has never been more challenging. A decade of policymaking designed in close consultation with the industry and appropriate to the realities of a maturing basin was jettisoned after the post-Ukraine invasion price spike. The implementation of windfall taxes in 2022, and their subsequent tightening under both Conservative and now Labour governments, are taking their toll.

The effects of government policy are not immediate – there are real lag times in an industry where investment planning and cycle times are long – but the signs are clearly there today. The drip-drip of cancelled infill drilling programmes, withdrawn asset life extension projects and constrained budgets is turning into a torrent, with previous basin champions such as Apache announcing their departure, and other major players such as Shell and Equinor merging their operations to reduce costs and optimise tax positions. It is no exaggeration to state that those companies that have the option to invest anywhere outside the UK will today be choosing to invest anywhere but the UK.

Nobody in the industry objects to the sharing of genuine ‘windfall’ gains with the Exchequer, and indeed we hope that the upcoming consultation on post-energy profit levy taxes will result in an equitable but flexible future tax regime.

It is welcome that government now appears to be softening its tone, but the industry urgently needs action, not words. The results of three interlinked consultations in the next few months will determine the future for an industry that generated more than £10bn of gross added value in 2023 and supports an estimated 200,000 jobs across the country.

Get it wrong, and the same oil and gas will be consumed but the jobs, investment, economic growth and taxes will go to other countries – to the UK’s detriment.

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The Middle East

Optimism in a booming but volatile energy region

Ryan McPherson,  Regional Director (Middle East, Africa, Russia and CIS), EIC Dubai

The Middle East continues to solidify its position as a global energy powerhouse, with 2025 poised to be a year of bold investment and strategic innovation. From mega oil and gas projects to pioneering clean energy investments, the region is showing a dual commitment to both energy security and sustainability.

Investing in a low-carbon future

This optimism is driven by record investment flows across the energy spectrum, particularly in the UAE and Saudi Arabia. The recent announcement that UAE’s NMDC Energy is investing US$500m in offshore wind installation vessels signals how seriously the region is embracing low-carbon opportunities and positioning itself to capture a leading role in global offshore wind markets. This complements ADNOC’s multi-billion-dollar investment in decarbonisation projects, including carbon capture, utilisation and storage, hydrogen, and advanced digital solutions.

The region must invest heavily in reskilling its workforce to align with emerging technologies Ryan McPherson, Regional Director (Middle East, Africa, Russia and CIS), EIC Dubai

Balancing volatility and long-term sustainability

However, optimism must be tempered with caution. Oil prices remain volatile, with supply concerns driving a recent rally, but growing trade tensions and tariffs have already led to price declines earlier this year amid fears of weakening global demand. This uncertainty puts pressure on regional operators to carefully balance short-term profitability from hydrocarbons with longer-term transition goals.

Key strategies for 2025

To position the Middle East as a global leader in energy innovation in 2025, a multi-pronged approach is essential:

1. Enhanced collaboration: Governments, national oil companies and international supply chains must work closely to de-risk supply chains, streamline investment processes and accelerate technology transfer.
2. Clearer project pipelines: Clear signals about upcoming low-carbon projects will increase supply chain confidence and encourage international investment and technology partnerships.
3. Digitalisation as a competitive edge: From AI-driven asset optimisation to predictive maintenance and emissions tracking, digital technologies will be critical to reduce costs and demonstrate measurable environmental performance.
4. Future-proofing the workforce: With new clean energy projects ramping up, the region must invest heavily in reskilling its workforce to align with emerging technologies and new business models.

By leveraging AI and innovation, the Gulf can maintain its leadership in the global energy market Ali Abdulla Al Ali, UAE Country Chair, Petrofac

The Middle East’s strategic location, resource wealth and growing innovation ecosystem give it a unique competitive advantage. However, 2025 will test its ability to adapt – balancing volatile commodity markets with the need to decarbonise and diversify. By embracing collaboration, technology and long-term thinking, the region can turn ambition into action and cement its role as a global energy leader for decades to come.

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720 energy projects US$1.2tn CAPEX
US$116bn 88 energy transition* projects
US$95bn 136 mature renewables projects
US$758bn 384 oil and gas projects
US$186bn 112 power/large-scale nuclear projects
*Energy storage, floating offshore wind, hydrogen, carbon capture, biofuel/sustainable aviation fuel and nuclear (advanced modular reactors/small modular reactors)
Source: EICDataStream 2025–2030, March 2025

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Q How can the Gulf unlock its energy potential? Ali Abdulla Al Ali, UAE Country Chair, Petrofac

The UAE and the wider Gulf region can overcome energy challenges and unlock their full potential by strategically integrating innovation and artificial intelligence (AI) across the energy sector. As global energy demand shifts toward sustainability, the region must balance its hydrocarbon wealth with aggressive investment in renewables, energy efficiency and digital transformation.

AI-driven predictive analytics can optimise asset management, reducing downtime and maintenance costs in oil and gas operations. Advanced machine learning models can enhance exploration and drilling efficiency, ensuring maximum resource use while minimising environmental effects.

 In renewables, AI can improve grid stability, forecast energy demand and optimise solar and wind power generation. Moreover, digital twin technology allows for real-time simulation and monitoring of energy assets, improving performance and reducing risks. The region must also focus on fostering local talent in AI and energy innovation through partnerships with universities and technology firms. Strengthening regulatory frameworks to support AI adoption and data-driven decision-making will be critical in driving efficiency and sustainability.

By leveraging AI and innovation, the Gulf can maintain its leadership in the global energy market while aligning with long-term sustainability goals, such as the UAE Net Zero 2050 initiative. Emphasising collaboration between public and private sectors will further accelerate the transition to a smarter, more resilient energy ecosystem.

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Asia-Pacific

APAC’s energy shift Azman Nasir, Regional Director, Asia–Pacific, EIC Kuala Lumpur

The Asia–Pacific (APAC) region is advancing its energy transition goals while balancing economic growth and energy security. A clear shift towards renewable energy is underway, driven by supportive policy changes and technological advances. Solar power remains dominant, with China and India leading the charge.

Oil, gas and hydrogen expansion

Energy security concerns have spurred a surge of liquefied natural gas projects.

Oil and gas production and terminal developments continue to grow to meet rising demand while fuel diversification is boosting hydrogen, ammonia and biomass co-firing pilot projects in APAC power plants.

Despite challenges in 2024, policy shifts remain favourable towards energy transition initiatives Azman Nasir, Regional Director, Asia–Pacific, EIC Kuala Lumpur

China leads in grey hydrogen, but governments are pushing for a transition to blue and green hydrogen, as seen in Malaysia’s Hydrogen Economy and Technology Roadmap. Meanwhile, carbon capture, utilisation and storage (CCUS) efforts are progressing with pilot projects and legal frameworks.

Policy and market growth

Despite challenges in 2024, policy shifts remain favourable towards energy transition initiatives. As solar power projects continue to lead the renewables sector, China and India are dominating the global solar PV and wind turbine supply markets. Battery energy storage is also garnering increasing interest to support clean energy and grid stability. In 2025, nuclear plant revivals and small modular reactor development will drive low-carbon power options in the power sector.

Although oil and gas remain robust, US tariffs could challenge trade prices with higher inflations. The sustainable aviation fuel market is set to grow, with Indonesia and Malaysia mandating sustainable aviation fuel blends in commercial flights from 2027. China, India and Korea’s electrolyser and fuel cell supply market will boost green hydrogen production and use across the region. Finalising CCUS frameworks will further establish the development of upcoming CCUS hubs in Southeast Asia (for example in Indonesia and Malaysia).

Asia must focus on fostering local talent in AI and energy innovation through partnerships with universities and technology firms Kenneth Pereira, Managing Director, Hibiscus Petroleum, Malaysia

Stronger energy foundations

APAC’s energy transition hinges on modernising grid infrastructures, strengthening the energy supply chain network, and fostering regional partnerships for technology and finance. Government incentives and policy frameworks will be pivotal in solidifying these foundations. Despite upcoming challenges, APAC’s positive momentum signals a sustainable future for the region in the years to come.

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3,633 energy projects US$4.5tn CAPEX
US$904bn 891 energy transition*projects
US$1.5tn 1,556 mature renewables projects
US$1.2tn 750 oil and gas projects
US$931bn 508 power/large-scale nuclear projects

*Energy storage, floating offshore wind, hydrogen, carbon capture, biofuel/sustainable aviation fuel and nuclear (advanced modular reactors/small modular reactors)
Source: EICDataStream 2025–2030, March 2025

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Q Can Asia lead the way in energy transition? Kenneth Pereira, Managing Director, Hibiscus Petroleum, Malaysia

Energy transition is on the back burner in the US. In Europe, it is in a state of flux – policymakers are trying to keep the green flag flying, but citizens are tired of rising clean energy costs. In China, coal and renewables seem to be in competition (and coal is winning). In Malaysia, the state of Sarawak has a comprehensive clean energy roadmap, founded on hydroelectric power and prominently featuring hydrogen. 

In renewables, artificial intelligence (AI) can improve grid stability, forecast energy demand and optimise solar and wind power generation. Digital twin technology allows for real-time simulation and monitoring of energy assets, improving performance and reducing risks. Asia must also focus on fostering local talent in AI and energy innovation through partnerships with universities and technology firms. Strengthening regulatory frameworks to support AI adoption and data-driven decision-making will be critical in driving efficiency and sustainability.

In summary, those charged with pursuing the 2015 Paris Agreement’s goals face strong headwinds as economics and energy security take priority over emission considerations.

A structured energy transition requires a ‘whole of society’ approach. First, climate objectives must consider pathways that are reasonably achievable and affordable by all stakeholders. Common sense should replace propaganda and commercial motives.

Europe’s confusion provides an opportunity for Asia. The latter needs to recalibrate and make this race a marathon, focusing on planting up core infrastructure (electrical grids) in a disciplined way that does not choke supply chains, and shaping citizens’ mindsets so that small, safe nuclear options can be implemented when technically ready.

Above all, Asia must prioritise energy security to protect economic growth. In Malaysia, we need to review the New Energy Transition Roadmap, asking and answering the difficult questions around the affordability of its stated objectives. Sarawak has a bold plan, with hydroelectricity generation at its core. Realistically, to fulfil primary energy demand, West Malaysia will have to rely on gas, then liqeufied natural gas, and finally nuclear. Solar should be confined to rooftops for domestic or secondary use.

The sooner we pursue this path, the more optimally we will use scarce financial capital and contribute long-term value to the country. As Chair of the Association of Southeast Asian Nations for 2025, Malaysia should also take the opportunity to align other member states with independent thinking around climate issues. Together, we should declare what we realistically can achieve (and afford) and sincerely deliver what we declare.

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North America

Adapting to a Trump economy Amanda C Duhon, Vice President and Regional Director North and Central America, EIC Houston

President Donald Trump’s second term, beginning in January 2025, has brought major shifts in US energy policy, reshaping oil, gas, renewables and trade under the United States-Mexico-Canada Agreement (USMCA).

Oil and gas growth versus renewables slowdown

The administration has doubled down on fossil fuels, relaxing environmental regulations and expanding drilling rights on federal land. This ‘drill, baby, drill’ approach is designed to boost energy independence and liquefied natural gas (LNG) exports. However, oversupply risks could drive down prices and diminish profitability. Ageing oil fields and a plateau in global gasoline demand also present challenges for long-term growth.

Meanwhile, renewable energy faces setbacks. The withdrawal from the Paris Agreement, cuts to federal funding, and tariffs on imports that are crucial to clean energy infrastructure have delayed project developments, caused financial losses and increased investor uncertainty. The freeze on the Inflation Reduction Act and Infrastructure Investment and Jobs Act funds has further deepened the sector’s struggles.

The administration has doubled down on fossil fuels, relaxing environmental regulations and expanding drilling rights on federal land Amanda C Duhon, Vice President and Regional Director North and Central America, EIC Houston

Trade and regulatory challenges

Trump’s deregulation agenda has boosted traditional energy sectors, particularly LNG, natural gas and nuclear power. However, tariffs on steel and other imports from China, Mexico and Canada have strained supply chains, driving up costs for businesses and consumers. Research estimates that US$233bn in tariffs will be absorbed by US firms, hitting small and mid-sized enterprises the hardest.

Balancing energy growth and sustainability

US power demand is projected to rise by 100bn kilowatt-hours by 2025. This, coupled with rising LNG exports, could increase natural gas prices and lead to a coal resurgence, reversing progress toward net-zero emissions. To sustain growth while ensuring sustainability, the US must embrace a balanced strategy that includes:

1. Policy stability: Long-term, consistent energy policies encourage investor confidence and infrastructure development.
2. Diversified energy investments: A balanced mix of oil, gas, renewables and carbon capture and storage (CCS) enhances energy security and affordability.
3. Infrastructure modernisation: Strengthening the national grid is essential to accommodate a diverse energy mix and improve resilience.
4. Research and development: Investments in energy technology can position the US as a leader in global energy innovation.
5. Collaboration and community engagement: Partnerships between government, industry, academia and local communities ensure effective energy transition strategies.
6. Natural gas as a transition fuel: LNG and CCS provide a low-carbon bridge to future renewable energy adoption.
7. USMCA renewal: Strengthening North America’s energy supply chain enhances competitiveness, foreign investment and cross-border infrastructure.

The onset of this electrification supercycle is a massive opportunity that can reshape economies Roger Martella, Chief Corporate Officer, GE Vernova

By adopting these strategies, the US can unlock its full energy potential, ensuring economic growth, energy independence and environmental sustainability in an evolving global landscape.

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2,806 energy projects US$2.07tn CAPEX
US$634bn 954 energy transition*projects
US$406bn 980 mature renewables projects
US$741bn 491 oil and gas projects
US$284bn 381 power/large-scale nuclear projects
*Energy storage, floating offshore wind, hydrogen, carbon capture, biofuel/sustainable aviation fuel and nuclear (advanced modular reactors/small modular reactors)
Source: EICDataStream 2025–2030, March 2025

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Q How can US manufacturing drive energy growth? Roger Martella, Chief Corporate Officer, GE Vernova

The US – and the world – needs significantly more electricity. The right policies will enable the country to expand its grid to meet the rapidly growing demand from data centres and other drivers. However, putting more electrons on the grid starts with building and innovating the equipment in the US to produce power. That’s where our manufacturing might matters. 

The equipment that powers the grid is the world’s most complex machine, with a legacy dating back 135 years to Thomas Edison. Today, GE Vernova employs 18,000 people in 18 factories in the US, building gas turbines, nuclear fuels and power, renewable equipment, and critical grid hardware and software. These factories and workers are the true foundation of our energy security.

We can deploy this technology to make immediate progress, simply improving what we already have in the US. For example, technology upgrades to just one class of our industrial gas turbines will add 14GW to our system. Upgrading nuclear and restarting decommissioned sites can add 2GW. And we are ready to upgrade 35,000 onshore wind turbines for more energy output. Beyond that, we must accelerate new base load by deploying advanced gas and nuclear technologies manufactured in US factories with sound policy, permit streamlining and private sector partnership.

Another important area is strengthening our grid – the ‘central nervous system’ of our energy infrastructure. The government must partner with the private sector to modernise and build strategic reserves of critical grid equipment, fostering factory growth and job creation and approaching grid hardening with a strong security mindset.

Finally, we can strategically deploy US-made equipment around the world to bring prosperity and resolve conflicts abroad.

The onset of this electrification supercycle is a massive opportunity that can reshape economies. By returning to our roots in US manufacturing, we can help both the US and the world rise to the challenge.

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South America

A region on the rise Clarisse Rocha, Director, Americas, EIC Rio de Janeiro

South America is emerging as a powerhouse for energy, with significant investments and government backing driving growth.

Brazil pushes boundarie

In Brazil, 2024 marked a turning point as President Lula approved major bills supporting carbon capture and storage (CCS), hydrogen and offshore wind energy. However, hurdles remain, including the need to strengthen regulations, secure financing for CCS and hydrogen projects, and prepare for an offshore wind auction in 2025. Meanwhile, the country is set to invest US$140bn in oil and gas and US$120bn in renewables by the end of the decade, with offshore pre-salt areas in the Santos Basin and the Northeast region offering prime opportunities.

Colombia is holding Latin America’s first offshore wind auction in 2025 Clarisse Rocha, Director, Americas, EIC Rio de Janeiro

Equatorial Margin: The next frontier

Offshore Guyana and Suriname are emerging as oil and gas hotspots, led by Exxon’s US$45bn investment in Guyana’s Stabroek block for the deployment of various newbuild floating production storage and offloading units (FPSOs), as well as petrochemical and power infrastructure inland. In Q4 2024, Suriname’s first FPSO project was sanctioned by TotalEnergies, with an estimated US$10.5bn investment to develop the GranMorgu field, aiming to recover 750m barrels of oil. Encouraged by these discoveries, Petrobras plans to expand exploration in Brazil’s Equatorial Margin once licensing is secured in 2025.

Surge in renewables

Colombia is holding Latin America’s first round of temporary occupation permits for offshore wind energy generation, with awards anticipated in December 2025. The country plans to bring 3GW of offshore wind generation online by 2035.

Argentina, under President Javier Milei (elected in late 2023), is showing signs of economic recovery, controlling inflation and introducing new legislation. The country’s new Regime for Large-Scale Investments, offering long-term tax and customs incentives, could help to develop the country’s liquefied natural gas export market by commercialising unconventional gas from the Vaca Muerta shale formation.

Understanding Brazil’s tax system is crucial, as existing reporting and compliance structures may not be equipped to handle local regulations Felipe Pestana, Partner and Director, Grupo Planus

Chile also offers fertile ground for renewable energy and clean hydrogen development, boasting nearly US$120bn from more than 150 project announcements since early 2024 and signalling strong growth potential across the region.

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1,839 energy projects US$1.6tn CAPEX
US$293bn 369 energy transition*projects 
US$833bn 932 mature renewables projects
US$361bn 303 oil and gas projects
US$86bn 235 power/large-scale nuclear projects
*Energy storage, floating offshore wind, hydrogen, carbon capture, biofuel/sustainable aviation fuel and nuclear (advanced modular reactors/small modular reactors)
Source: EICDataStream 2025–2030, March 2025

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Q Is Brazil’s tax maze worth the effort? Felipe Pestana, Partner and Director, Grupo Planus

Brazil’s tax system is notoriously complex. According to the World Bank’s ‘Doing Business’ ranking, a company spends approximately 1,500 hours per year calculating taxes and delivering tax returns in the country.

So, is it worth doing business in Brazil? I’d say yes: it’s a continental country (the world’s fifth largest) and the second most important economy in the Americas. It is home to numerous resources (both renewables and non-renewables) and a population of 210 million people. Brazil is a very interesting market to explore.

To succeed in Brazil, understanding its tax system is crucial. It is highly unlikely that your existing reporting and compliance structure will be equipped to handle local regulation. For example, all transactions are backed up by local invoices, raised in the digital environment of the municipalities or states, and subject to several local tax codes.

A company in Brazil is expected to provide between 60 and 90 tax returns per year. One should expect at least three taxes levied on revenue when selling or providing services, some of which may – or may not – contain VAT-like aspects. Even the ones that can will depend on the tax regimes elected by each company. Notably, Brazil has begun to implement a dual-VAT system, which will eventually make the system more familiar to VAT jurisdiction companies.

Grupo Planus has built a dedicated team and structure to support our international clients with their Brazilian projects. Our goal is to simplify Brazilian bureaucracy and elevate our clients’ knowledge of the Brazilian system, and help them quote accurately and efficiently.

With our support, we can confidently say that while Brazil may be a tough challenge, it’s absolutely one worth taking on.

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Africa

Driving Africa’s clean energy revolution: Crucial policy and investment shifts for 2025 Mohamed Adow, Director, Power Shift Africa

Africa has some of the world’s most abundant renewable energy resources, but energy access remains a pressing challenge, with more than 600 million people lacking electricity. Unlocking the continent’s clean energy potential will require bold policy reforms and strategic investment shifts to accelerate deployment while ensuring affordability and reliability.

On the policy front, regulatory reforms are crucial to create an enabling environment for private investment. Many African nations have outdated energy regulations that deter independent power producers and slow down project approvals. Streamlining bureaucratic processes, ensuring transparent power-purchasing agreements and allowing more competition in the electricity sector could significantly improve investor confidence. Strengthening regional power integration through initiatives such as the Southern African Power Pool and the East African Power Pool could facilitate cross-border electricity trade, reducing energy costs and improving grid stability.

Decentralised energy solutions also need greater policy support. Large-scale grid expansion alone cannot meet Africa’s growing energy demand, particularly in rural and under-served areas. Governments must embrace mini-grids, off-grid solar systems and distributed energy resources as viable alternatives, providing incentives for their adoption. Our experience with a small, off-grid solar power plant that we built in Elan, a rural community in northern Kenya, has proven this to be a viable solution that can be replicated across the continent. Similarly, policies that promote local manufacturing of solar panels, wind turbines and battery storage systems can reduce dependency on expensive imports and create jobs, boosting growth.

Unlocking Africa’s clean energy potential will require bold policy reforms and strategic investment shifts to accelerate deployment while ensuring affordability and reliability Mohamed Adow, Director, Power Shift Africa

Investment strategies must also evolve to support Africa’s clean energy transition. The biggest hurdle remains financing: renewable projects often face high capital costs and perceived investment risks. Blended finance models, where public funds and development finance institutions help to de-risk private sector investments, can unlock much-needed capital. Expanding the use of green bonds and tapping into global climate finance mechanisms such as the Green Climate Fund will provide additional funding sources. Moreover, African governments should foster public-private partnerships to accelerate infrastructure development and leverage innovative financing tools such as pay-as-you-go solar schemes to make clean energy affordable for all. 

At COP29 in Baku in 2024, we argued that technology transfer and capacity building are essential in this transition. Africa has significant natural resources, but lags in the technical expertise needed to develop and maintain renewable energy projects. Investing in training programmes and research institutions that focus on renewable energy could help to build a skilled workforce, reducing reliance on foreign expertise. Establishing partnerships with global renewable energy companies to facilitate knowledge transfer will accelerate the adoption of advanced technologies. 

These policy and investment shifts will not only accelerate Africa’s clean energy deployment, but also ensure that the benefits of this transition reach the most vulnerable populations, driving inclusive and sustainable economic growth.

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893 energy projects US$1.2tn CAPEX
US$219bn 115 energy transition*projects 
US$204bn 334 mature renewables projects
US$509bn 322 oil and gas projects
US$286bn 122 power/large-scale nuclear projects
*Energy storage, floating offshore wind, hydrogen, carbon capture, biofuel/sustainable aviation fuel and nuclear (advanced modular reactors/small modular reactors)
Source: EICDataStream 2025–2030, March 2025

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Q How can Africa better position itself in global climate talks to secure financing and support for its transition?

Africa faces a complex energy dilemma: while it must expand energy access and industrialise to lift millions out of poverty, it is also expected to align with global climate commitments by reducing fossil fuel dependence. Many African leaders have argued for a “just energy transition” that balances these needs, but securing adequate financing and support in international climate negotiations remains a challenge. 

For us at Power Shift Africa, and indeed  for the millions of Africans who daily suffer from the consequences of the climate catastrophe, one of the biggest shortcomings of past COP negotiations is wealthy nations’ failure to fulfill their climate finance commitments. The US$100bn per year pledged by developed countries to help poorer nations to transition to clean energy has not materialised, and much of the available funding is in the form of loans, rather than grants. This is unacceptable and unfortunate, and that’s why we have been saying that, to strengthen its position in global climate talks, Africa must adopt a more unified, assertive approach.

An important strategy is forming strong coalitions, including the African Group of Negotiators and the African Union’s Committee of African Heads of State on Climate Change, to speak with one voice. Presenting a coordinated, well-documented case for Africa’s specific energy and financial needs will enhance the continent’s bargaining power. 

In addition, African governments should demand more direct access to climate finance, rather than relying on intermediaries such as international development banks, which often impose restrictive conditions. Creating Africa-based climate finance institutions can help to ensure that funds reach the projects and communities that need them most. By strengthening their negotiating positions and advocating for climate policies that reflect their development realities, African nations can push for a global framework that supports both economic growth and a sustainable energy transition. 

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