Global Energy Transition in 2025: Trends and Challenges
Key Ideas
  • Clean energy investments continue to outpace fossil fuels, expanding into diverse renewable sources and technologies like nuclear and green hydrogen.
  • Despite growing global energy demand, opportunities exist to cut large fossil fuel subsidies and transition towards cleaner energy solutions.
  • Intense competition arises in the $2 trillion clean energy market, driving countries to invest in renewable energy technologies and materials for economic growth.
  • With new commitments from countries like the UAE, UK, and Brazil, 2025 presents a crucial period for cutting emissions and enhancing global climate action.
In the year 2025, the global energy transition is expected to accelerate, influenced by various factors such as geopolitics, energy security, and economic opportunities. Clean energy investments are projected to surpass those in fossil fuels, extending beyond wind and solar to include nuclear, hydro, storage, and green hydrogen. While fossil fuel investments persist, there are opportunities to reduce large subsidies and shift towards cleaner energy sources. The clean energy technologies market is expanding rapidly, with countries like India, Brazil, the UAE, and Egypt actively participating in the development and export of renewable energy materials and technologies. New commitments from countries like the UAE, UK, and Brazil aim to cut emissions and enhance global climate action, setting the stage for further climate pledges and financial commitments. Despite challenges like geopolitical risks and economic slowdown, collective action and strong global momentum create optimism for significant progress and ambition in the energy transition in 2025.
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