The Global Energy Transition: Dawn of a New Era
Oct 31, 2025
In Brief
The global energy transition is not only an environmental imperative, but the next great investment frontier — where sustainable energy meets strategic opportunity.
The world is undergoing the most radical change in its energy system since the Industrial Revolution — shifting from fossil fuels to renewable sources-driven infrastructures.
What is the Energy Transition?
The energy transition refers to the global shift from fossil fuels (coal, oil, natural gas) to clean energy sources such as solar, wind, hydropower, and geothermal. The goal of this transition is to reduce carbon emissions, enhance energy security, and ensure sustainable growth.
Global forecasts had anticipated that renewables would overtake coal in power generation in the near term — and emerging 2025 data now confirm this shift
The Three Main Drivers of Change
Technology
Technological progress has unlocked the hidden power beneath our feet. With advanced drilling methods and modern power plant designs, geothermal energy now offers reliable, round-the-clock clean electricity at increasingly competitive costs
Policy
With agreements such as the Paris Climate Accord and national net-zero commitments, governments worldwide now recognise energy independence and clean power as strategic priorities.
Capital
Investment flows into ESG-aligned assets and energy transition projects are rapidly growing. Clean energy is increasingly an economic choice, not simply a moral one.
Economic Impact: The New Industrial Revolution
According to Bloomberg, global investments in the energy transition Exceeded $2 Trillion for the First Time in 2024.
Bloomberg’s report published in August 2025, states a new record during the first half of 2025, as global investments reached $386 billion.
The Human Dimension: A Just Transition
Within the global energy transition revolution, creation of new jobs adds a human factor that cannot be ignored. In this context, Geothermal energy stands out for its strong employment impact, as It creates roughly 180% more jobs than wind power and almost 185% more than solar. This makes geothermal not only a sustainable energy source, but also a powerful engine for local development and long-term job creation.
Investment Perspective
For investors, the global energy transition represents a generational opportunity to participate in the build-out of tomorrow’s essential infrastructure. This transformation is reshaping capital markets, directing unprecedented flows toward real assets — tangible, long-lived projects such as Geothermal drilling, renewable power plants, energy infrastructure, and clean-technology production facilities.
Institutional capital is increasingly favouring ESG-aligned funds, which have consistently attracted larger inflows than conventional funds in recent years. According to Morningstar (2024), global ESG funds drew over USD 10 billion of new capital in a single quarter, bringing total assets above USD 3.3 trillion. This momentum demonstrates that sustainable investing is no longer a niche preference but a mainstream financial strategy driven by both performance and purpose.
Policy alignment also plays a crucial role. Frameworks such as carbon pricing, green-bond issuance, and sustainability-reporting standards are strengthening transparency and de-risking capital allocation toward cleaner technologies. Together, these dynamics position the energy transition as one of the most resilient and scalable investment themes of the coming decade.
Conclusion
The energy transition is more than a shift in power sources — it’s a transformation of value itself. The true winners will be those who understand, manage, and transform it into lasting opportunity.
About this Journal
This is the first of our installment series. Each issue will deliver global and regional energy market trends in investor-friendly language, with an emphasis on opportunities and actions.
Next issue: “The Cradle of Renewable Energy: The Unique Advantages of Geothermal.”
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