Global Energy Landscapes
On 1st October, The D Group and British Expertise International hosted a panel event exploring Global Energy Landscapes. We were delighted to be joined in person by Campbell Keir, President at the Energy Industries Council (EIC), Stephen Nash, Managing Director at Kuungana Advisory and Benjamin Lemaitre, Group Strategy Director at Dalkia UK. The event explored essential insights into the future of energy, offering perspectives on global investment trends, regulatory shifts, technological advancements and industrial transformation. With the energy sector facing profound transformations, from geopolitical tensions to economic pressures and policy uncertainties, concerns are mounting about the long-term trajectory of the energy landscape.
This piece examines the evolving global energy landscape and the challenges and opportunities associated with it, drawing on industry expertise and insights from the recent panel.
Insights from leaders in the energy sector, current projects and capital expenditure
The Energy Industries Council (EIC) reports that industry leaders across its membership are losing faith in reaching net zero targets and in government’s ability to support the net zero transition, with an emphasis on the increasing lack of international alignment among governments. As the EIC’s Survive & Thrive report highlights, there is also a notable reduction in companies reporting success from energy transition projects, with energy transition revenues (hydrogen, carbon capture, floating offshore wind and nuclear SMRs) dropping from 9% to 6% (EIC Survive & Thrive IX).
As of July 2025, the energy landscape saw a large number of projects within mature renewables, such as offshore wind and solar, alongside energy transition projects including carbon capture and storage (CCS) and BioFuels (EIC Data Stream). However, Capital Expenditure (CapEx) was the highest on oil & gas, including upstream and conventional power. Projects that have reached Financial Investment Decision (FID) are overwhelmingly traditional hydrocarbon projects (e.g. upstream and gas fired power stations) (EIC Data Stream).
This raises concerns about the effectiveness and feasibility of current net zero investment, policy and regulatory strategies. With that, the EIC highlights that consistency in government policy is critical, as it directly affects decision-making processes within the wider supply chain, emphasising the need for long-term, stable regulatory environments (EIC Survive & Thrice IX).
The progression of the energy transition
While clean energy investment has increased quickly and remains substantial, the pace of growth is insufficient to meet net zero targets. The energy transition is growing in complexity – as the sector moves beyond early and more accessible gains, it faces increasingly difficult challenges within a turbulent geopolitical context. Kuungana Advisory’s work advancing the 7th Sustainable Development Goal (SDG), universal access to clean and affordable energy, draws on a few key challenges within the current global energy landscape.
For example, tariffs and supply chains have been deeply impacted and protectionist measures risk reducing supply and increasing costs. China, which has been a target of US tariffs, is a major supplier of equipment required for the transition. At the same time, pressure to increase defence spending compounds the legacy impact of the pandemic by further reducing the availability of fiscal space to fund the investment required for the energy transition. This pressure is acute in the UK and other European markets that have, to date, been leaders in driving the energy transition. Perhaps most apparent is the rise of populism and political polarisation in contemporary politics, with some politicians successfully using the energy transition as a wedge issue in stoking division. This pushback will only grow as the transition moves beyond low-hanging fruit to measures that cost more and/or require individuals to make different choices.
However, with these challenges also come important opportunities. Market dynamics continue to support the expansion of renewable energy, and there is likely to be continued momentum. As we have seen in the case of solar energy, the market will continue to drive growth in renewables if they are effective and scalable. Cheap solar is hard to resist and deployment here continues to increase, with a growing share of this procurement being led by large energy users. Consumers are also increasingly paying attention to the carbon content of the goods and services they buy, and companies are joining initiatives such as RE100 to signal their commitment to renewables. Regulations such as the Carbon Border Adjustment Mechanism (CBAM) mean that EU and UK carbon caps now impact third countries. This is resulting in a stimulus for electricity markets to open as large energy users demand the option to buy power directly from renewable energy generators so that they can reduce their exposure to CBAM.
Sustained innovation and investment will be critical to achieving climate and net zero objectives. Central to this is the need for increased investment in new technology, together with the implementation of new regulatory and commercial models, both of which will enable the scaling of renewable energy.
The state of decarbonisation
In the UK, electricity production has been substantially decarbonised over the last 15 years with wind and solar. However, gas remains a significant contributor and still sets the UK’s electricity marginal cost, driven by its volatility and high cost since Ukraine crisis in 2022. The resulting high cost of electricity is slowing down the progress on usage electrification, notably for heat and transport, which is critical to deliver the Energy Transition.
The main heat decarbonisation challenge lies within the existing buildings stock (residential, private and public buildings) which will need to be retrofitted to allow heat pump solutions, which can place a burden on the consumer. As a result, public support for decarbonisation efforts is lower in our current “cost of living” context, and easily challenged at the political level.
Despite these challenges, we know that decarbonisation works, and there are serious examples of this, including Dalkia’s work with the Imperial College Healthcare London NHS Trust. The project notably includes the installation of 10MW heat pumps on the Charing Cross hospital site – this enables the supply of heat and domestic hot water while reducing the consumption of natural gas (80%). At the same time, solar panels have been installed on the two sites, creating a green and sustainable source of electricity and reducing dependence on the electricity grid. The two hospitals benefit from a series of energy efficiency measures, notably related to lighting, heating, ventilation, air conditioning and energy management.
Ultimately, this is a more sustainable and cost-effective means of approaching energy. The challenge lies in ensuring public support for energy retrofitting is sustained through the clear communication of benefits, financial incentives and visible community success stories. It is here that effective policy making is imperative to ensure clean energy is an affordable reality for consumers.
Moving forward – the need for investment and financing
What is needed for the energy transition, as in most sectors, is investment. Where the challenge lies for energy is attracting investment towards emerging clean technologies, which are much risker for investors than traditional sources of energy. Ensuring that clean energy investments do not fall to the wayside in the face of political uncertainty is critical.
Underpinning all of this is a need for greater collaboration between government and the private sector. Private capital is a crucial element for financing the energy transition. To achieve net zero targets by 2050, annual clean energy investment worldwide will need to more than triple to around $4 trillion by 2030. It is unlikely that public funding alone will be sufficient to meet this scale of demand, so the private sector has a significant role to play in bridging the gap and accelerating the transition through more strategic investment and innovation. Nonetheless, this will only be possible with consistent and credible signals from governments – long-term infrastructure planning, clear regulatory frameworks and an enabling environment that reduces risk and encourages private capital.
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BEI delivers a range of events that bring together members with relevant stakeholders in governments around the world, bilateral and multilateral funders as well as our partners in the UK Government. In addition, we convene ad hoc Working Groups, designed to help members share technical best practice and create content that showcases UK capability in specific areas. If you are interested in learning more, or have any questions or enquiries following the event, do get in touch here.
BEI was delighted to be able to convene this valuable discussion and is grateful for the contributions from our members, friends in the Energy sector and beyond in London who were able to join us on the day.
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