The global race to lead in the energy transition has seen significant investments in technology and infrastructure, particularly by the United States of America, the European Union and China. 
 
The US, through its Inflation Reduction Act (IRA), is directing $369 billion into clean energy, focusing on expanding the domestic manufacture of critical technologies such as electric vehicles and renewable energy components. The legislation is designed not only to cut emissions, but also to reposition the US as a global leader in green technology production. President-elect Trump has also argued the US needs to increase energy production to be competitive in areas such as AI, which requires significant power to fuel its systems. However, some of these measures may go against existing measures in the energy transition. 
 
It has also been announced that new natural gas pipelines will be encouraged, and US production of fossil fuels increased by making it easier  to drill on federal land. Also, that US will be pulled out of the Paris climate agreement while supporting increased nuclear energy production. Given these facts, it is essential to strike a balance and reach a well-aligned solution. 
 
The IRA act in the US parallels the European Union’s  Fit for 55  initiative, part of its broader Green Deal, which seeks to achieve climate neutrality by 2050, with key investments in offshore wind, hydrogen and grid modernization. It is necessary for Europe to continue grounding these investments to strengthen its global position, alongside the regulatory efforts it is pursuing. 
 
Meanwhile, China, already the world’s largest producer of solar panels, is leveraging its dominance in clean energy technology supply chains to further entrench its global leadership. In 2022, it produced  80% of the world’s solar panels and dominated the global battery market. It also accounted for 60% of the new renewable capacity added worldwide in 2023, and its total photovoltaic generation is on course to exceed the total electricity demand of the US today by the early 2030s. 

Resource-rich nations like Australia and Canada are also strategically benefiting from their vast mineral reserves.  Australia, which accounts for more than half of the world’s lithium production, is emerging as a critical player, capitalizing on the rising global demand for essential materials. 

Finally, Africa has a significant role to play in the energy transition. The continent’s success will depend on how governments use legal frameworks to support investment. 
 
Before then, nations will be closely observing developments at the latest Conference of the Parties on Climate Change (COP). On this occasion, however, it was evident that a common approach was missing.As with COP28 in Dubai, COP29 in Baku opened with a dramatic twist. In an unexpected move, the Azerbaijani presidency immediately approved the creation of a carbon credit trading market, to be managed directly by a United Nations supervisory body. In principle, states will be able to exchange credits associated with reduced or unused emission quotas, helping each other to achieve the mitigation objectives of individual national commitments, known as NDCs (Nationally Determined Contributions). 
 
Regardless of the participants, it’s clear that the race towards a new global energy system remains wide open. The key takeaway is that this system must be collaboratively built and designed to endure. This means prioritising security, resilience and flexibility, and ensuring that the benefits of the new energy economy are shared between all citizens. 
Carlo Luzzatto 
CEO & General Manager, RINA 

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