Fostering Effective Energy Transition 2025

Export controls Reshoring incentivesGeoeconomic fragmentation Strategic alliances Market disruption Emerging producersShifting competitive landscape Tech-led entrantsImport dependence Regional diversificationMaterials access risks Domestic prioritizationSupply chain strains Challenge ResponseDiversificationStrategic realignmentGeopolitical volatility Innovation bottlenecks Accelerated deploymentRunaway demand Intelligent infrastructure Targeted incentivesNew financing modelsFinancing barriersInvestment risks GeopoliticsSupply chains Trade policiesTechnology FinanceMarket dynamics4.2 Energy systems in a new global context Energy systems in a new global context – key takeaways BOX 8 Energy systems are fragmenting. Energy systems are moving from globalized, centralized models towards more localized, resilient and digitally enabled structures.The narrative has broadened. Transition strategies now prioritize equity, security, competitiveness and tech disruption – alongside climate goals.Energy is becoming central to economic strategy. Governments are reshaping systems for resilience, security and value, with tighter supply chains and domestic capacity. Transitions are now multi-speed and multidimensional. Countries and regions face distinct challenges across equity, security and sustainability – necessitating localized approaches and globally aligned action. Source: World Economic Forum. Note: Challenges = systemic vulnerabilities or stressors. Responses = strategic or structural countermeasures. Source: World Economic Forum.The evolving market reality As geopolitical tensions, economic competition and rapid technological change intensify (Figure 10), countries are recalibrating their energy strategies to prioritize security, affordability, self-sufficiency and resilience. While climate ambition remains a core pillar, for many emerging and developing economies (EMDEs), concerns around energy access, equity and reliability have long taken precedence – shaped by infrastructure gaps, fiscal constraints and development needs. Recent events, such as the widespread electricity blackout in Spain and Portugal71 in April 2025, have further underscored the critical importance of energy resilience, even in advanced economies. Strategic forces reshaping global energy systems FIGURE 10 Fostering Effective Energy Transition 2025 39