Page 13 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Asia Pacific remained the largest region for investment, accounting for 47% of the global total in 2025.
China, the largest market, is still the leader in overall investment ($800 billion in 2025), but posted its first
decline in funding renewables since 2013. India’s investment climbed 15% to $68 billion. The EU shrugged
off headwinds to grow 18% to $455 billion, contributing the most to the global uptick. US investment also
recorded a 3.5% increase to $378 billion, despite the Trump administration’s moves to slow the energy
transition.

Climate-tech companies raised $77.3 billion in private and public equity throughout 2025, up 53% year-
on-year and marking the first year of growth after three consecutive years of decline. This rise in funding
was led by companies working in clean power, energy storage, and low-carbon transport. Additionally,
M&A activity remained strong, ending 2025 with $99.1 billion closed, reaching a 37% increase from the
prior year. This increase can be attributed to acquisitions from companies in the clean power and buildings
sectors gaining traction for global data center buildouts.

4. Five Reasons the Clean Energy Transition Needs Nuclear Power- International Atomic
Energy Agency (IAEA)

The International Atomic Energy Agency (IAEA) has revised up its projections for the expansion of nuclear
power, as global momentum continues to build behind this clean and secure source of energy. In the high
case projection, the IAEA estimates that global nuclear operational capacity will more than double by 2050
– reaching 2.6 times the 2024 level – with small modular reactors (SMRs) expected to play a pivotal role
in this expansion.

Nuclear is thus an important part of a sustainable, energy-secure future.

• Nuclear Delivers Large-scale, Low-carbon Power
Nuclear energy ranks among the cleanest power sources when assessed across its entire lifecycle.
Lifecycle analyses consider every stage — from uranium mining and fuel fabrication to plant construction,
operation, and decommissioning. Even with all these phases included, nuclear power’s total greenhouse
gas emissions remain extremely low, comparable to wind and lower than solar.

This is because nuclear reactors produce electricity without releasing carbon dioxide during operation,
and advances in technology continue to reduce emissions from earlier stages of the fuel cycle. New
reactor designs — including small modular reactors— are being developed to provide flexible,
dispatchable clean energy and further minimize total emissions. According to the IAEA’s Power Reactor
Information System (PRIS), as of 20 January 2026, 415 reactors were in operation worldwide, providing
376.0 GW(e) of nuclear capacity and supplying hundreds of millions of homes with low-carbon electricity.

• Nuclear power plants can provide a continuous and reliable supply of energy because
they operate at full capacity nearly uninterrupted. This contrasts with variable renewable energy sources,
such as solar and wind, whose output depends on weather conditions and typically requires backup or
storage.

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