Global law firm Clifford Chance has outlined a number of key trends and challenges that will transform the renewables industry in its latest Energy Transition Trends 2024 report.
The energy transition requires a massive and increased rate of investment from both the public and the private sectors.
Clifford Chance’s 2024 Trends report, explores what will shape the year ahead, focusing on the innovations and legal developments that teams are seeing in clean hydrogen, carbon capture and storage, green fuels, carbon pricing, digital transformation, innovative finance and incentives to mobilise capital.
As the global energy sector stands on the cusp of a transformative era, Jonathan Castelan and Russell Wells, co-heads of Clifford Chance’s Energy Transition initiative, shared their perspective to Clean Energy Pipeline on the evolving landscape of energy investments and the critical factors influencing the shift towards sustainable energy solutions.
“The energy transition space is continuing to mature, and investors are becoming more comfortable with both public and private incentives,” said Castelan.
“The combination of these two factors will spur global investment in energy transition projects. While there will be increased opportunities for investors, it will be important for them to ensure the success of their projects by staying apprised of the latest market trends and evolving incentive landscape.”
“Seeking out the right opportunities while navigating legal and regulatory hurdles is vital for businesses,” noted Wells.
“Projects are advancing, funding is becoming available and innovative solutions are emerging, but the backdrop of ongoing geopolitical uncertainty and increased regulatory scrutiny will create some headwinds.”
Key Report Highlights:
- Geopolitical overview: Explores catalysts including conflict, climate change, elections and government incentives, shaping energy security and the ensuing impact on the global energy transition.
- Clean Hydrogen: Analyses the progress made in several “ready to go” use cases for clean H2 as a viable and sustainable technology, as well as long term investment potential in markets traditionally dominated by oil and gas.
- Carbon Capture and Storage: A look at the development of the CCUS market across geographies, and the global motivations behind the drive towards CCUS as a conduit for asset transition by enhancing the value of existing facilities securing financing for new developments, and creating sustainable fuels and materials.
- Green/Biofuels: Discusses the expected rise of green fuels demand this year, as well as the resulting opportunities and challenges of their forthcoming popularity.
- Tech + digital transformation: Underscores how digital technologies are instrumental in reducing carbon footprints, optimizing energy distribution networks, and ensuring energy efficiency.
- Blended finance: A look at how blended finance can stimulate greater private sector investment in the global energy transition, and how a focus on standardising complex development structures, and maintaining flexibility will ensure the success of diverse, high-profile energy transition initiatives.
- Private capital: Underscores the resilience of sectors with strong demand for clean energy generation and decarbonisation solutions and subsequent private investor appetite to allocate capital to this space given the increasing need for “brown-to-green” investment.
Clifford Chance’s latest report highlights the dynamics of investor engagement with energy transition projects, underscored by a growing confidence in both public and private incentives, and the importance of strategic navigation through the legal and regulatory frameworks that shape these ventures.
Please click here to download the report in full.