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Executive summary │ 2025 considerations
Sectors
Two-speed energy transition between "mature" and "emerging" clean technologies
Key sectoral and clean technology themes in 2025
In the second of our three series into the key considerations of 2025 from an ESG lens, we build on part (1) the climate (see here) to delve into part (2) sectors.
Global energy transition investments has surpassed USD2tn for the first time, and has more than doubled since 2020. Yet, sectorally the performance remains bifurcated, with a distinction between sectors where technologies are proven, commercially scalable and business models established, against those that are not.
“Mature” technologies – renewable energy, power grids, electrified transport and energy storage – are by far the largest sectors, accounting for 93% of total energy transition investments in 2024.
“Emerging” technologies – electrified heat, hydrogen, carbon capture and storage, nuclear, clean industry and clean shipping – face challenges around affordability, technology maturity and commercial scalability.
In this context, we offer our clients an examination of the key sectoral and clean technology themes for 2025 in this thought leadership report:
- Renewable energy. Constituting one-third of total transition investments, led by solar in APAC/MENA.
- Power grids. Dominated by the commissioning of utility-scale investments spurred on by falling costs.
- Electrified transport. Passenger EVs represent the largest sectoral share of clean technology spending.
- Energy storage. Sharply declining equipment prices is driving a global surge in utility-scale projects.
- Electrified heat. The only sector wherein current levels of spending is on track to meet net zero targets.
- Hydrogen. Consistently high costs and challenges securing offtake making it difficult to reach FIDs.
- Carbon capture and storage. Policy ambiguity (US 45Q, EU Innovation Fund) stalling investments.
- Nuclear. Flatlined growth on scheduling delays/cost overruns, but APAC’s outlook remains promising.
- Clean industry and shipping. Steel sector is struggling, whilst clean vessels are rising but still negligible.
