Global cumulative energy storage installations in gigawatts (GW), 2021–2035 FIGURE 5 50100150200250Storage capacity (GW) Mainland China US India Germany UK Italy Australia Japan Rest of world Buffer2021 2022 2023 2024 2025e 2026e 2027e 2028e 2029e 2034e 2033e 2032e 2031e 2030e 2035e0 Note: e = estimate Source: BloombergNEF. (2025, 18 June). Global Energy Storage Growth Upheld by New Markets. https://about.bnef.com/insights/clean-energy/global-energy-storage-growth-upheld-by-new-markets/. 2.5 Capital flows are resilient but unevenly distributed Investment in clean energy has increased, yet the growth has slowed to around 11% YoY in 2024, less than half the 24–29% YoY of previous years (Figure 6).90 Higher interest rates, policy uncertainty and supply chain pressures have cooled investor appetite, making capital more selective, concentrated and costly. In hard-to-abate sectors, financing now flows only to projects that can prove deliverability – secure clean power access, credible offtakes and verifiable carbon data. Developments lacking these elements face higher premiums, delayed FIDs or cancellation. Investors are casting a wider technological net – from renewables and electrification to hydrogen, CCUS and sustainable fuels – but capital flow still favours technologies and initiatives that can deliver guaranteed returns, irrespective of diversification. A project that cannot operate at market cost – even if innovative – will not scale. In aviation, over $2 billion in green bonds have funded hydrogen and SAF infrastructure,91 while the EU Innovation Fund is backing SAF purchases through €100 million in ETS allowances.92 In cement, sustainable finance volumes grew 17% in the first half of 2024,93 led by Heidelberg and UltraTech’s $1.7 billion in CCUS and low-clinker investments.94 Hydrogen-based pilots in steel and chemicals advances are observed mainly in Europe, Japan and the Gulf, where carbon pricing and offtake guarantees de-risk returns. Emerging tools such as transition bonds are also helping high- emission industries finance credible decarbonization without eroding competitiveness. Investment momentum endures, but financing remains selective – favouring mature technologies and advanced economies over new projects and markets. Scaling the Industrial Transition: Hard-to-Abate Sectors and Net-Zero Progress in 2025 20

Scaling the Industrial Transition 2025