The energy industry is undergoing a major transformation driven by three key mega trends: Decentralization, Decarbonization and Digitalization.

Amongst these three mega trends, decarbonisation has attracted significant investment and has been a key modality for climate change mitigation efforts undertaken by governments across the world. Decarbonization refers to the process of reducing or eliminating carbon dioxide emissions and other greenhouse gases released into the atmosphere because of human activities, such as the burning of fossil fuels. The goal of decarbonization is to mitigate climate change by reducing the concentration of greenhouse gases in the atmosphere. This can be achieved through different pathways/negative emissions.

Global clean energy spending has been ramping up and these investments have been increasing from an estimated USD 1.0 trillion in 2017 to an estimated USD 2.0 trillion in 2024 driven strongly by investments in renewable energy, energy efficiency and other segments such as grids and energy storage, nuclear energy, electric vehicles, low carbon fuels and CCUS (carbon capture, utilization & storage). Aligning with global trends, GCC countries have also outlined ambitious energy transition plans, with investments predominantly centered around renewable energy and green hydrogen projects.

INSIGHT PREPARED BY OUR KNOWLEDGE PARTNER: Frost & Sullivan