SINGAPORE, March 12, 2025 – The natural resources industry is set to ramp up investment in clean energy technologies by more than a third in the next financial year, despite continued spending on fossil fuels, according to a new report by Willis, a WTW business (NASDAQ: WTW).
The 2025 Global Clean Energy Survey, which gathered responses from 450 senior decision-makers across Europe, North America, Asia-Pacific, and Latin America, found that companies in the sector are committed to long-term sustainability while navigating increasingly complex risk environments.
Balancing Investment Priorities
The survey revealed that all natural resources companies surveyed have a clean energy strategy in place, albeit at varying levels of maturity. While 71% of renewables firms are at the implementation or completion stage, only 36% of oil and gas companies have reached similar progress.
Despite rising short- and medium-term fossil fuel investments, 63% of respondents view clean energy as a growth opportunity. Notably, investment in clean energy technologies and infrastructure is expected to increase by 34% on average in 2025.
Technology and Risk Considerations
The survey also highlighted a shift in technological priorities. Solar energy remains the top focus in the near term, with 51% of companies prioritising solar investments. Over a 10-year horizon, however, 61% of respondents highlighted battery storage solutions and carbon capture as critical priorities, while geothermal and hydrogen technologies are gaining traction.
Yet, significant risks persist. Supply chain disruptions (79%) and geopolitical issues (78%) were cited as the biggest threats to clean energy strategies, reflecting concerns over trade tensions, regulatory changes, and shifting subsidies. Additionally, companies face challenges in securing appropriate insurance coverage, with 53% struggling with blanket exclusions, while 48% cite limited policy flexibility.
Asia’s Role in the Energy Transition
Sam Liu, Head of Renewables for Asia at Willis, emphasised the growing importance of interconnectors—cross-border electricity transmission links—as Asia’s energy transition accelerates. Initiatives such as the ASEAN Power Grid and the East Asia Super Grid (connecting China, South Korea, and Japan) are expected to improve energy security and enable more efficient use of clean energy resources.
“Cross-border power trading can help countries export surplus clean energy, enhance grid stability, and reduce curtailment risks,” Liu said. “However, regulatory harmonisation, capital-intensive infrastructure projects like subsea cables, and geopolitical tensions remain key hurdles. Risk and insurance analytics, along with tailored risk financing solutions, will be crucial in mitigating these challenges.”
Addressing Decarbonisation Challenges
Rupert Mackenzie, Global Head of Natural Resources at Willis, acknowledged the pressures facing companies navigating the clean energy transition.
“Natural resources firms must juggle competing regulatory, financial, and operational pressures while maintaining energy security and revenue stability,” Mackenzie said. “Despite these challenges, their commitment to clean energy is clear. As the industry evolves, we are dedicated to supporting companies with insights and risk management solutions that will help shape a sustainable energy future.”
The report underscores the evolving dynamics of the global energy landscape, with the natural resources sector striving to balance commercial imperatives with the urgent need for decarbonisation.