The Energy Transition’s Next ChapterSeptember 2025 By Maurice Berns, Bas Sudmeijer, Rich Lesser, Pattabi Seshadri, Anders Porsborg-Smith, Patrick Herhold, Cornelius Pieper, Asheesh Sastry, Zsofia Beck, Rebecca Fitz, Tom Brijs, Steven Goovaerts, and Alexander OhmBoston Consulting Group Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.The Center for Energy Impact The Center for Energy Impact (CEI) shines light on the energy transition, focusing on the actions required to achieve global transformation. CEI applies a holistic perspective to understanding and shaping bold responses to one of the most critical and complex challenges of our time.Our deep expertise spans markets and economics, carbon and technology, capital and investors, the macrodynamics of geopolitics and resilience, and the microdynamics of politics and specific policies. We offer nuanced, constructive ideas and solutions covering the future availability, economics, and sustainability of the world’s energy sources—and the implications for energy companies, industries, investors, consumers,and governments. The CEI team is committed to facilitating informed, innovative discussions to make our world sustainable.THE ENERGY TRANSITION’S NEXT CHAPTER 3The energy transition has entered a new phase. Over the past 36 months, the global energy landscape has evolved significantly. Among the most notable developments is the increasing emphasis on energy security and affordability. This reflects the fact that access to energy underpins economic vitality and human prosperity. Yet the increased carbon emissions associated with meeting the world’s energy needs risk undermining those very gains. Failing to price in the externalities of CO2 emissions doesn’t make them disappear. That said, the energy transition remains a fundamental secular shift. It is, however, unlikely to be a linear one—with the road ahead marked by uneven progress and occasional setbacks. It is also important to note that there is no single transition, but multiple country a...
