Energy as a weapon

The critical case for energy transition

- Georgia Hall

Market noise would have us believe we're at the end of the road for the energy transition and the push to decarbonise - not just in the US, but even in more climate-oriented markets such as Europe.

But the reality is far more nuanced than the headlines suggest. The energy transition offers numerous affordability and security benefits which only strengthen the case for decarbonisation in an era of deglobalisation. This point isn't lost on companies and policymakers in Europe.

President Trump's inauguration in January 2025 saw swift and sweeping attempts to roll back key policy measures designed to incentivise and attract investment in some clean energy sectors. Even Europe, often seen as the most progressive and climate-oriented market, is showing signs of a pullback on flagship "green" policy measures as the region attempts to re-orient capital towards security and defence.

This negative sentiment has been further strengthened by a challenging environment for renewable energy projects that pre-dates the Trump 2.0 presidency. Project developers on both sides of the pond are facing inflationary pressures, supply chain bottlenecks and permitting delays.

But the numbers tell a different story. Data from the International Energy Agency (IEA) shows that renewables accounted for the largest share of growth in global energy supply over 2024 at 38%. In key markets like Europe, solar and wind generation surpassed coal and gas for the first time, while US coal consumption fell by approximately 4% to its lowest level in nearly 60 years, and European consumption dropped by 10%.