Article

The global energy transition is increasingly characterized by significant capital allocation, with projections estimating a total energy investment of $3.3 trillion by 2025, of which $2.2 trillion will be directed towards clean energy. However, fossil fuel subsidies are substantial, nearing $7 trillion in 2022, indicating that governments are simultaneously supporting both clean and traditional energy sources.

Policy plays a crucial role in this landscape, as demonstrated by recent modifications to the U.S. Inflation Reduction Act and Europe's Green Deal. Despite this, rising interest rates can impede project progress, especially in sectors like offshore wind.