Recalibrating: green investments amid shifting political paradigms
Green and ESG investing is facing pressure from political and security concerns, but remains essential. Investors are looking for real transition plans, concrete data, and proof that companies can handle shocks. On thing is clear: the old box-ticking era is over.
Changing investor expectations
Climate concerns pushed huge flows into green funds between 2020 and 2022, backed by SFDR and the EU taxonomy. Carbon-neutrality strategies tripled in size. But expectations have moved on. The war in Ukraine exposed weak supply chains and shifted public budgets, making it easier to criticise ESG in some circles.
Even so, climate risk, supply issues, and rising scrutiny from investors remain. Companies with reliable ESG data attract capital and show they can manage long-term risks and performance.
Resilience as a strategic requirement
Sustainability is now tied to resilience. Europe needs stronger local supply chains, clearer decarbonisation paths, and better management of resources. Renewable capacity is set to more than double by 2030, with solar leading.
If momentum continues, renewables will carry most of global electricity generation by the end of the decade. At the same time, China’s rapid progress in cleantech raises concerns about Europe’s ability to hold its own.
An upcoming power struggle
Electrification is becoming a strategic issue. AI and data centres could push electricity demand up by 700 to 900 TWh by 2030. Video generation in particular uses far more energy than text models. Efficiency gains help but is unlikely to fully contain the growing demand for electricity.
Control of electricity supply now influences economic, digital, and security strength. This has put resilient grids, diverse energy sources, nuclear options, storage, and long-term power agreements into geopolitical priorities.
February 03, 2026
