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Global Environmental Energy New Trends for 2025

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Environmental energy 2025 1

2025 will be a crucial year for the worldwide environmental energy sector as the energy revolution picks up speed. Globally, energy structures and market dynamics are undergoing significant changes due to the interaction of policies, technologies, finance, and geopolitical concerns. Some of the major worldwide trends in the environmental energy sector for 2025 are listed below. In addition to changing the patterns of energy supply and consumption around the world, these trends will spur advancements in energy storage technology, carbon markets, green finance, and other areas.

1. Renewable Energy Growth: The Dominant Source of Power

The International Energy Agency (IEA) predicts that renewable energy will overtake all other sources of electricity in the globe by the start of 2025. According to projections, the proportion of power generated globally from renewable sources will increase from 30.2% in 2023 to 35.3% in 2025, marking the first time that renewable energy generation would overtake coal-fired plants. This is a major turning point in the world’s transition to a low-carbon, greener energy system.

Solar and wind energy will remain at the forefront. Global renewable energy capacity is predicted to reach 7,300 gigawatts between 2023 and 2028, with 95% of the new renewable generation capacity coming from solar and wind power. With nations like China, India, and those in Latin America continuing to increase their investments in renewable energy, this trend is especially noticeable in emerging economies and is propelling the global expansion of green energy.

2. Breakthroughs in Low-Carbon Hydrogen and Ammonia

For the growth of the low-carbon hydrogen and ammonia sectors, 2025 will be a crucial year. Many people believe that hydrogen is an essential component of sustainable energy systems of the future, especially in developing nations like China, Latin America, the Middle East, and India, where several gigawatt-scale hydrogen projects are planned. With at least three large-scale blue hydrogen projects expected to reach final investment decisions by 2025, with a combined capacity of over 1.5 million tons per year, the United States will also continue to increase its investment in blue hydrogen, which is hydrogen produced from natural gas with carbon capture technology.

Ammonia, another key energy carrier, is also set for significant advancements in 2025. According to Wood Mackenzie, the value chain for low-carbon ammonia is expected to reach around $8 billion globally, with $5 billion of this investment directed at upstream projects. This development will further extend the global green energy value chain, offering more options for clean energy applications.

3. Rapid Advancements in Energy Storage Technologies

As renewable energy adoption grows, energy storage technologies will become essential for ensuring system stability and reliability. The rapid development of battery storage technologies will have a profound impact on the global energy market. Saudi Arabia, for example, plans to rapidly expand its energy storage industry over the next decade and become one of the top 10 global markets for battery storage systems. Additionally, countries like Turkey and Bulgaria will make significant investments in emerging storage technologies and will tender large-scale “gigawatt-scale solar/wind + storage” projects.

On the technological front, lithium-ion batteries will continue to improve in terms of capacity, lifespan, and safety. New storage technologies, including vanadium flow batteries, compressed air energy storage, flywheel energy storage, and sodium-ion batteries, are also making significant progress at various stages. Specifically, vanadium flow batteries are entering pilot demonstrations at the 100-megawatt scale, while compressed air energy storage is transitioning toward commercialization. These advancements will provide a more robust foundation for global energy systems, ensuring greater flexibility and stability.

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4. The Rise of Green Finance: Supporting the Green Transition

As the global energy transition accelerates, the green finance sector is also expanding rapidly. International organizations and financial institutions are actively promoting frameworks for net-zero emissions transitions and encouraging financial institutions worldwide to develop and implement net-zero transition plans. Financial instruments such as green bonds and sustainable investment funds are being widely adopted, providing a rich source of funding for renewable energy projects.

However, the progress of carbon markets remains challenging. Although Article 6.4 of the Paris Agreement sets out the global carbon market mechanisms, their full implementation is still a long way off. In this context, mandatory carbon markets in regions like the United States and the European Union are facing hurdles but are showing resilience in driving emissions reductions. Meanwhile, the international voluntary carbon market has faced quality concerns, with multiple international organizations working to establish frameworks to enhance the quality and transparency of carbon credits.

5. The Impact of Policy and Geopolitics

Policy decisions and geopolitical dynamics are playing a significant role in shaping global energy markets. In 2025, the United States is expected to take a more proactive role in energy policy, particularly through diplomatic measures and sanctions aimed at weakening the energy dominance of certain nations, especially by reducing dependence on specific energy-exporting countries. The U.S. will continue to strengthen cooperation with European allies to reduce reliance on Russian energy resources, while accelerating the development and deployment of clean energy technologies.

In Europe, many countries are already taking steps to reduce their reliance on Russian energy imports. By 2025, as new rounds of sanctions are implemented, Europe will further restrict Russian energy exports, particularly oil and natural gas. To secure energy supplies, Europe will expand LNG (liquefied natural gas) import capacity and build alternative energy supply chains. These developments will create new price volatility in global energy markets, making energy security a central focus of national policies.

Conclusion: Embracing a Greener and Smarter Future

In 2025, the global environmental energy sector will continue to undergo profound transformations. Breakthroughs in renewable energy, low-carbon hydrogen, energy storage technologies, and green finance will reshape the global energy supply and consumption landscape. Meanwhile, supportive policies and rising market demand will provide strong impetus for the energy transition. These trends suggest that the world is on the brink of a new era—one where green energy will become the core driver of global economic growth and sustainable development. As we move forward, the global energy system will evolve into a greener, more sustainable, and smarter model that can meet the challenges of climate change and support the achievement of global sustainability goals.

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