Outlook 2026: Magnus Drewelies

2025 was defined by climate pragmatism. Solutions that work, cost less, and make sense beyond their climate benefits attracted most of the capital and attention - primarily in the form of equity. This reflected a contraction in non-dilutive funding as many public sources dried up, most notably in the US.

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Climate ambition is not an externality but a core component of economic and social strategy

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2026 will continue to be a year where climate ambition is not an externality but a core component of economic and social strategy. Apart from a continued need to invest in flexible grids and related technologies like battery storage to support the rising energy needs of AI with cost-competitive renewables, two further shifts are clearly on the horizon.

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The geopolitical shift to the East

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While Europe will remain a steady foundation for both equity and non-dilutive funding, Asia is gaining unparalleled speed in implementation. Japan's net-zero ambition is driving notable investments in carbon dioxide removal. China's ETS is gaining traction and scope. Singapore continues to be a carbon hub for wider Asia.

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Matured funding for the long-term climate transition

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As focus sharpens on financially viable climate technologies with proven demand, a new generation of capital instruments is emerging. Both energy and carbon solutions require non-dilutive funding, and financial institutions are developing tailored debt products to support the climate transition. With institutional commitments holding steady and market demand becoming clearer, structured debt solutions are set to deliver attractive returns for investors while enabling the critical next phase of scale for carbon and energy technologies.