THOUGHT LEADERSHIP
Powering Change: Financing the transition
A global view on financing the transition
A much greater focus on cleaner energy is imperative to achieve the goal of reducing carbon emissions, and the business community plays a critical role in facilitating this transition.
Now in its fourth edition, our Powering Change report clearly demonstrates the extent to which corporates understand this and are committed to playing their part. Based on a survey of more than 2,000 senior executives and managers involved in energy decision-making we explored, in chapter 1, the technologies they are currently investing in, where they think the best future opportunities are – in terms of both new technologies and geographies, and where they expect the funding to come from.
In chapter 3, we look at non-regulatory obstacles preventing a faster transition and how, once those impediments are overcome, more sources of capital are available to be deployed into the clean energy sector. How? Thanks to a wide range of new investors who are set to enter the market.
Chapter 3: Financing the transition
- Through a series of case studies and viewpoints from across Europe, the Middle East, Asia and Australia, we explore existing and new sources of capital.
- 37% of energy sector leaders believe access to capital will hold their organisation back when scaling new energy technologies.
- Increasing move towards private pools of capital to bridge the funding gap required to meet investment required to reach net zero targets
- 31% of energy sector leaders believe it will be transport and mobility companies who will be the leading investors in renewable power generation sources over the next five years, followed by Banks (29%)
- There is no shortage of funds, rather a scarcity of properly structured projects in markets with predictable regulatory environments.
Powering Change: Financing the transition
“Leaders are facing increasing pressure to transition their own business, as societal attitudes towards carbon emissions continue to evolve. Balancing interests is complicated and no easy feat, but businesses which understand the challenges and opportunities the transition presents, and are prepared to act confidently will be best placed to succeed and make substantial headway in realising their ambitions.”
Dan Brown
Partner
Powering Change:
“It is no surprise that those working in the energy industry expect the pace of change and investment in the energy transition to accelerate. However, what our research does highlight is the lack of certainty about what the next phase of the transition looks like. It's clear that when it comes to meeting the targets being set by governments, there are enormous opportunities for those organisations willing to take a bold and strategic approach.”
Michael Burns
Partner
“Leveraging projects using project financing techniques can improve rates of return for equity investors and this is often critical where competition has driven margins down. It can also provide key risk mitigation in emerging markets where financing is offed by development finance institutions and export credit agencies that have quasi-government to government relationships with host states and where their participation can provide a level of political risk cover for all investors.”
Sonny Udovicic
Partner
COP29, Azerbaijan, November
At the next global climate summit meeting, there are likely to be calls for even more urgent action to accelerate the transition. There may be demands that stakeholders work more closely together to achieve it as quickly as possible. But, as with previous summits, it will be vital for substantive actions to take place once the delegates have returned home.
Powering Change: Regulatory readiness
In chapter two of this year's Powering Change, we focus on how regulation is seen as a barrier to the faster growth of clean energy production and the role governments play in overcoming it.
Read Powering Change: Regulatory readiness
Powering Change: Technologies fuelling the future
In chapter one of this year's Powering Change, we demonstrate the extent to which corporates need to understand the need to rapidly accelerate the transition to cleaner energy.
Read Powering Change: Technologies fuelling the future
Powering Change: Funding Net Zero
In our 2023 report, we investigated the accelerating pace and scale of global transition to cleaner energy.
Read Powering Change: Funding Net Zero
Powering Change: Energy in Transition
In 2022, we published Powering Change: Energy in Transition, where we delved into the then current state of the market, pace of change, and areas of future opportunity.
Read Powering Change: Energy in TransitionPodcasts and vodcasts
Exploring Hydrogen Markets – Kenya & Uzbekistan
Ashurst’s Yann Alix is joined by Amyn Mussa from Anjarwalla & Khanna (ALN Kenya) and Madina Hamidova from Centil Law Firm to discuss the hydrogen markets in Kenya and Uzbekistan.
ESG Matters podcasts
Tackling environmental, social and governance issues, this podcast series will keep you across the global trends and local issues that are shaping the legal landscape and impacting organisations.
Future Forces: Megatrends in Infrastructure
Ashurst partners Ratha Nabanidham and Mark Barges speak to Ross Israel, Head of Global Infrastructure at QIC, about the expected extraordinary growth and innovation in the world’s infrastructure sector.
What's Next for Energy-from-Waste?
Ashurst's Cameron Smith chats to Stefan Barrow and Andrew Howie, two fellow experts on energy transition and infrastructure, about the current EfW market, flag the major opportunities and challenges, and consider what lies ahead.
Nearing Net Zero – Powering Change: Technologies fuelling the future
Tune into the latest Nearing Net Zero vodcast series, as Ashurst partners Dan Brown and Elena Lambros consider the key take-aways from our fourth edition of the Powering Change report.
Where next for floating wind?
In this video, Ashurst partner Mark Barges explores the commercial viability and technological challenges of floating wind technology.