Scaling up the energy transition

How are corporates and capital providers setting priorities, staying competitive and managing risk?

Around the world, the journey to a net-zero economy has started. Smaller carbon footprints and cleaner energy sources are now a priority for energy companies, despite the imperative to meet near-term energy needs that is boosting demand for fossil fuels.

This is a turbulent time for energy markets. So we surveyed energy executives to find out how their companies are dealing with risks and seizing opportunities.

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Meet your energy transition team at White & Case

Meet the team

Around the world, the journey to a net-zero economy has started. Smaller carbon footprints and cleaner energy sources are now a priority for energy companies, despite the imperative to meet near-term energy needs that is boosting demand for fossil fuels.

This is a turbulent time for energy markets. So we surveyed energy executives to find out how their companies are dealing with risks and seizing opportunities.

Receive energy transition updates

Subscribe

Meet your energy transition team at White & Case

Meet the team

Energy transition capital is being deployed faster than ever, funded from ever increasing sources and we are moving from a phase of piloting transition technologies to rolling out at scale

Michael Watson

Partner | Head of Energy Transition | White & Case

Energy transition capital is being deployed faster than ever, funded from ever increasing sources and we are moving from a phase of piloting transition technologies to rolling out at scale

Michael Watson

Partner | Head of Energy Transition | White & Case

Listen to the interview with Michael Watson

Our survey finds that energy companies are concerned about staying competitive.

of corporates say that staying competitive is the greatest risk in a net-zero economy

say they are well prepared

Energy companies are taking decisive steps to cut their greenhouse gas emissions. And they are investing in renewable energy and low- or zero-carbon technology such as carbon capture, utilisation and storage.

42 per cent of corporates say energy transition investment is a high priority now, compared with only 14 per cent two years ago
Over the next 18 months:

of energy companies intend to pursue investment opportunities in greenfield renewable energy projects

will look into carbon capture and abatement technology

Energy companies are well-positioned to lead the transition, but to do that they need to develop new technology and infrastructure to provide an affordable, reliable and greener energy mix. And that means they need capital and government support to reduce the financial and legal risks of that process.

The good news is that many capital providers and energy companies want to decarbonise their portfolios and operations and help other sectors to get greener.

Our survey finds that energy companies are concerned about staying competitive.

of corporates say that staying competitive is the greatest risk in a net-zero economy

say they are well prepared

Energy companies are taking decisive steps to cut their greenhouse gas emissions. And they are investing in renewable energy and low- or zero-carbon technology such as carbon capture, utilisation and storage.

42 per cent of corporates say energy transition investment is a high priority now, compared with only 14 per cent two years ago
Over the next 18 months:

of energy companies intend to pursue investment opportunities in greenfield renewable energy projects

will look into carbon capture and abatement technology

Energy companies are well-positioned to lead the transition, but to do that they need to develop new technology and infrastructure to provide an affordable, reliable and greener energy mix. And that means they need capital and government support to reduce the financial and legal risks of that process.

The good news is that many capital providers and energy companies want to decarbonise their portfolios and operations and help other sectors to get greener.

The investment community has really made climate action the new business imperative. It’s a business opportunity because less carbon is less cost, so it’s a time for organisations to reimagine themselves, their solutions, their stakeholders

Annette Clayton

CEO | Schneider Electric North America

The investment community has really made climate action the new business imperative. It’s a business opportunity because less carbon is less cost, so it’s a time for organisations to reimagine themselves, their solutions, their stakeholders

Annette Clayton

CEO | Schneider Electric North America

More than four in ten corporates and capital providers say they would rather make investments to reduce emissions than divest emissions-intensive businesses and assets in their portfolios.

Given the enormous amounts of capital required to finance the transition, providers intend to use a mix of sources of finance to invest in new renewable energy companies and low-carbon technology.

Top three sources of finance

1 |

2 |

3 |

Private equity financing

Project finance

Corporate green bonds

Top three sources of finance

1 |

Private equity financing

2 |

Project finance

3 |

Corporate green bonds

SECTION 1

Energy transition financing has become a clear priority

There has been a distinct shift in capital allocation across the energy sector in the past two years. Many energy company executives now see capital investment in the energy transition as a much higher priority.

SECTION 2

Can energy companies stay competitive in a net-zero economy?

The energy sector knows it needs to focus on decarbonisation and the transition to cleaner energy— but without undermining its competitiveness.

SECTION 3

Engagement outweighs divestment

Divestment from energy and emissions-intensive sectors is an unpopular strategy, and energy companies and capital providers are looking for smart ways to invest to reach their net-zero goals faster.

SECTION 1

Energy transition financing has become a clear priority

There has been a distinct shift in capital allocation across the energy sector in the past two years. Many energy company executives now see capital investment in the energy transition as a much higher priority.

SECTION 2

Can energy companies stay competitive in a net-zero economy?

The energy sector knows it needs to focus on decarbonisation and the transition to cleaner energy—but without undermining its competitiveness.

SECTION 3

Engagement outweighs divestment

Divestment from energy and emissions-intensive sectors is an unpopular strategy, and energy companies and capital providers are looking for smart ways to invest to reach their net-zero goals faster.