The energy transition: policy ambition versus market reality

The energy transition highlights a growing mismatch between policy ambition and market reality, with project logistics demand tempered by slower investment decisions. Despite governments’ net-zero commitments, financial approvals for new energy transition projects are being constrained by infrastructure limits, policy uncertainty, and execution risk for investors. Tim Killen of forwarder Fracht Group said reaching a final investment decision (FID) is being held back for new projects, while more mature energy projects proceed faster. deugro’s Saida Sawyer pointed to inconsistent legislative and regulatory frameworks across regions, noting that momentum in Europe has contrasted with slowing activity in the Americas since about two years ago. The article also notes that oil and gas remain the largest source of new project capital expenditure, shaping where logistics providers concentrate activity.