It is a privilege to stand before you today at the final day of International Energy Week 2025. Over the past few days, we have examined the profound transformation underway in the global energy landscape. Today, we bring this conversation together, analyzing insights from both mature and emerging markets to understand how we can collectively shape the future of energy.
The organizers may have saved the most critical conversation for last. Recent data shows fossil fuels still account for 80% of global primary energy consumption, despite rapid renewable growth. This underscores the scale of the energy transition challenge. As we move toward a lower-carbon future, we must balance energy security, affordability, and sustainability. Each region faces unique dynamics in managing this trilemma:
Europe:
Europe has been at the forefront of the clean energy transition, with aggressive policy frameworks such as the European Green Deal. In 2024, renewable energy surpassed fossil fuels in electricity generation for the first time, accounting for 42% of total power output, with wind and solar leading the charge. Offshore wind capacity expanded significantly, with the UK, Germany, and the Netherlands investing in large-scale projects. However, the region also faces challenges. The 2022 energy crisis exposed vulnerabilities in energy security, pushing governments to diversify their energy supply, including reviving interest in nuclear power. Hydrogen, particularly green hydrogen, is gaining traction, with €10 billion in EU funding committed to scaling production and infrastructure by 2030.
North America:
The United States has witnessed a stark shift in energy policy following the return of President Donald Trump. The renewed emphasis on fossil fuels—particularly oil and natural gas—has altered investment flows, with drilling activity increasing in Texas and Alaska. Despite this, renewables still accounted for 24% of U.S. electricity generation in 2024, driven by state-level mandates and corporate demand for clean power. Canada, in contrast, remains steadfast in its clean energy commitments. Hydropower continues to dominate, but investments in wind, solar, and carbon capture technologies are rising. The country is positioning itself as a leader in critical minerals essential for energy storage and electric vehicles (EVs), which are vital to the global supply chain.
Middle East:
Historically associated with fossil fuel wealth, the Middle East is undergoing an energy transition of its own. Saudi Arabia, the UAE, and Qatar are investing billions into renewable energy, as they seek to future-proof their economies. In 2024, solar PV generation in the Middle East increased by 40%, with mega-projects like the Mohammed bin Rashid Al Maktoum Solar Park in Dubai leading the way. The region is also setting its sights on green hydrogen as an export commodity. Saudi Arabia’s NEOM project is expected to be the world’s largest hydrogen production hub, targeting 4 million tonnes per year by 2030. However, balancing this transition with domestic energy security remains a challenge, as demand for natural gas in power generation remains high.
Asia:
Asia accounts for nearly half of global energy consumption, with China and India driving demand. China remains the world’s largest investor in renewables, adding 250 GW of solar and wind capacity in 2024 alone. However, coal remains dominant, supplying 55% of the country’s power needs—a stark reminder of the energy security challenges at play. India, meanwhile, is expanding its renewable capacity at an unprecedented pace, aiming for 500 GW of non-fossil fuel capacity by 2030. Yet, affordability remains a concern, as millions still lack access to reliable electricity. Balancing economic growth with climate commitments is a delicate challenge for policymakers.
Africa:
Now, I am aware that there is an entire session that will focus on energy transition in Africa, but since that’s where I come from, I hope you would permit me to spend some more time here. Africa, home to 17% of the world’s population but just 3% of global energy demand, represents both a challenge and an opportunity. The 2024 Energy Institute Statistical Review highlights that sub-Saharan Africa still relies on traditional biomass for cooking, affecting health and environmental sustainability. Despite its minimal contributions to global energy security, Africa is disproportionately impacted by climate change. The challenges underscore the need for accelerated access to abundant, affordable and reliable energy to drive development, prosperity and climate resilience. Thankfully, Africa is endowed with abundant energy resources. Our abundant gas remains key to first addressing energy poverty and enabling our transition from heavier fossil fuels and traditional biomass. Renewable energy capacity in Africa is projected to grow fivefold by 2030, with countries like South Africa, Egypt, and Morocco leading the way and gas will also play a key role in backstopping intermittent renewables. Despite this potential, financing remains a bottleneck. While the African Union’s Agenda 2063 and the Nairobi Declaration on Climate Change emphasize sustainable energy, global investment needs to scale significantly to meet demand. Key Trade-offs in the Energy Transition
• Security: Geopolitical tensions highlight the need for diversified supplies, from LNG to nuclear and hydrogen.
• Affordability: While renewables are cost-competitive, infrastructure and financing gaps hinder deployment in emerging markets.
• Sustainability: CO₂ emissions remain near 40 gigatonnes, demanding stronger policy action, carbon pricing, and clean technology incentives – not just integration of lower carbon fuels sources but also rapid scaling and deployment of emission reduction technologies – CCUS, Methane abatement, etc.
Policy and Investment Imperatives Governments must provide clear, stable policies to attract investment, as seen in the EU’s CBAM and China’s emissions trading. Investors need risk mitigation strategies to scale clean energy in emerging markets. Businesses should prioritize energy efficiency, electrification, and resilient supply chains to benefit from regulatory and consumer shifts. The energy transition is not just about cutting emissions—it is about building a sustainable, equitable, and prosperous future for all humans. As leaders, we must drive bold collaboration and innovation to achieve this vision. Thank you.