Powering Change: Funding Net Zero

The accelerating pace and scale of the global transition to cleaner energy has never been more evident. The economic recovery from the Covid-19 pandemic coupled with the conflict in Ukraine has had a dramatic impact on the energy market. Our latest report, Powering Change: Funding Net Zero – now in its third year - provides an insight into how the industry is adapting, looking at the technologies they are using, the places they are investing, and their sources of funding.

As the world grapples with the energy trilemma of ensuring the availability of secure, affordable, and sustainable power, our research shows just how much momentum the energy transition has. Renewable power and other technologies are critical for the world to meet its climate goals. They are critical too for businesses, as they face their own demands of the future.

Key insights of the report include:

• investment flow from traditional energy to renewable energy and decarbonisation will speed up in the next 12 months;
• the conflict in Ukraine has obviously had a significant impact on the global energy market - interestingly, the increased need to ensure greater energy security made evident by the crisis is likely to lead to a quicker energy transition, not a slowdown;
• a shift in the biggest sources of funding of renewable power investment is expected in future - while corporates continue to invest strongly in renewable power, currently ranking first place with banks in second, that is set to change in the next five years, with funds and transport mobility companies overtaking;
• trends show a notable shift in the location for energy transition investment - the biggest regions for growth over the next five years is the faster growing markets of Asia, with many respondents citing Central Asia, South-East Asia and North Asia as becoming ever more attractive investment destinations.