Natural resources companies are set to significantly increase their investments in clean energy technologies in the coming financial year. According to a recent global Clean Energy Survey by Willis, spending in this sector is expected to rise by over 34%, reaching an average of $249 million in 2025, up from $185 million in 2024. This shift reflects a growing commitment among these companies to embrace renewable energy, despite a continued focus on fossil fuels in the short term.
The survey gathered insights from 450 senior decision-makers in the energy and natural resources sectors across Europe, North America, Asia-Pacific, and Latin America. It found that all participating companies have established clean energy strategies, although the degree of implementation varies by sector. For instance, 71% of renewable energy companies report that they are actively implementing their clean energy strategies. In contrast, the numbers are lower for oil and gas companies at 36%, power companies at 63%, and mining and metals at 43%.
The push towards clean energy is seen as a growth opportunity, with 63% of respondents recognizing potential in this area. This sentiment is echoed even among oil and gas firms, which are investing in clean energy while also increasing their fossil fuel activities.
The transition to renewable sources like solar, wind, and hydro is crucial for achieving net-zero emissions. The International Energy Agency (IEA) has stressed the importance of decarbonizing the global energy system to limit global warming to 1.5°C. This transition not only addresses climate change but also enhances energy security and creates green jobs.
Looking ahead, solar energy is a primary focus for 51% of respondents in the near term. Over a longer horizon, 61% prioritize battery storage solutions and carbon capture technologies. Geothermal and hydrogen are also gaining attention as significant areas for development in the next decade.
However, the path forward is not without challenges. Supply chain disruptions and geopolitical instability are major concerns, with 79% of industry leaders citing supply chain issues and 78% pointing to geopolitical uncertainty as top risks. Factors like trade tensions, regulatory changes, and shifts in government subsidies contribute to these challenges.
Insurance coverage also poses difficulties for many companies. Over half of the respondents (53%) reported that blanket exclusions hinder their ability to transfer risk. Other concerns include limited policy durations and inflexible terms, as well as a lack of suitable insurance products.
Rupert Mackenzie, the global head of natural resources at Willis, emphasized that companies must find a balance between regulatory, financial, and operational challenges while they transition to cleaner energy solutions. The upcoming investments indicate a strong commitment to this goal, even amid the risks and uncertainties that lie ahead.