There is a basic truth that defines innovation—that the biggest risks are often the biggest opportunities.
Nowhere is that truer than with clean energy. One of the biggest challenges to global economic prosperity—the impact that droughts, heatwaves, and storms caused by planet-warming pollution are having on supply chains, workforces, and infrastructure—has become one of the biggest economic opportunities.
The shift to clean energy isn’t just about managing risk. It’s about unleashing a wave of new markets, business models, and solutions. Electric vehicles, grid upgrades, and energy efficiency technologies are transforming industries, lowering costs, creating high-quality jobs, and strengthening energy resilience for businesses and communities.
All of this progress is powered by innovation. Even in the face of uncertain U.S. policy, the pace of clean energy innovation is accelerating. Fundamental market forces, from technological breakthroughs to fierce global competition, are driving this momentum. In 2024 alone, global investments in clean energy soared to $2 trillion—double the amount spent on fossil fuels. Solar power cemented its position as the cheapest source of new electricity, reshaping the global energy landscape.
This dynamic of innovation is why I’m optimistic looking out at 2025 that the pace of clean energy innovation will not only continue but continue to accelerate because of three key drivers.
Transformative Tech Forces are in Play
We’ve seen this picture before. The same game-changing tech forces at work now are the ones that fueled the rise of the computer age and the internet. Technology costs are plummeting, and technological economies of scale are playing out, just as they did with semiconductors, broadband, and computers, making cutting-edge solutions more accessible and more cost effective to use in new applications. Market expertise is rapidly evolving as industries adapt to these new technologies. Just as the internet redefined how we live and work, clean energy is poised to reshape the global economy.
Solar and wind costs are plummeting thanks to innovation and industry learning curves, while fossil fuel efficiency remains stagnant. Batteries, the linchpin for energy storage and EVs, are experiencing transformative price drops, particularly in China, halving costs in just one year.
The next wave of innovation includes technologies poised to reshape industries. Clean energy and clean technologies like geothermal, nuclear innovations, and low-carbon cement and steel are poised to scale—areas where U.S. companies can lead global markets.
Competition is Fueling Progress
This innovation isn’t just about climate action; it’s about economic competition and energy security. Nations are now embedding climate into trade policy, such as the European Union’s carbon tariff that holds imports to EU environmental standards, and linking reducing carbon pollution to industrial policy. Energy, after all, equals power.
Even if U.S. federal climate policies stall, private-sector leadership and global market pressures will push the transition forward. Industrial policy in China and the EU means the U.S. cannot afford to fall behind. Whether it’s innovation around clean steel, green hydrogen, or AI-driven demand for energy, global competition is fierce.
Companies and Customers are Leading
As global markets prioritize clean technologies, major corporations are staying the course on their goals for reducing carbon pollution and propelling innovation. Clean energy has evolved into a competitive advantage, offering resilience and efficiency. As energy demand grows—fueled by reshoring, advanced manufacturing, and AI—clean energy solutions are becoming the most efficient and cost-effective path forward.
Customers are also driving change. Businesses and communities need resilience and cost savings to combat volatile energy prices, weather-related damages, and grid vulnerabilities. Insurers, for example, are sounding the alarm as climate-related disasters rack up billions in damages—$92.9 billion in 2023 and more than $100 billion expected in 2024.
The clean energy transition is no longer driven by policy alone—it is fueled by economic necessity, market competition, and customer demand. The question is no longer if the energy transition will happen—it’s who will lead and benefit from it. Investors and companies know that the U.S. must continue to seize this opportunity to lead in the clean energy innovation, or risk falling behind as other competitors sprint ahead. The stakes are high—but so are the rewards.
