ENGIE Impact: How 2025 will be a Defining Year for Energy
There are a lot of factors that can influence how the energy space evolves in 2025 and beyond.
Other markets are also set to be impacted, including corporate sustainability, with the impact of COP29 rippling through the new year.
In this Q&A, ENGIE Impact’s Director of Sustainability Solutions Neon Steinecke and Anne-Katrin Hagel, Director Sustainability Solutions, share how they foresee the energy space changing in 2025.
Q. How will the political and economic landscape change in 2025, and how will this impact upon companies trying to hit their sustainability goals?
Neon: The 2024 US elections will play a pivotal role in determining the pace of decarbonisation efforts for 2025 and beyond.
With deglobalisation trends persisting, the potential for trade conflicts poses significant risks, particularly for the West, which remains heavily reliant on China for clean technology.
Economic factors further complicate the situation. While monetary policies are loosening, a slowing economy has led to tight corporate budgets throughout 2024.
This raises concerns about whether sustainability will remain a priority, as many companies have set ambitious targets for 2025 that now seem at risk.
Q. Tell us more about challenges around corporate sustainability in 2025?
Neon: Following COP29, the spotlight on financing climate action has never been more critical.
Financial constraints have meant some companies have already started revising or softening their sustainability commitments.
The deteriorating economic health of governments in key markets, such as France and Germany, has resulted in reduced subsidies and heightened regulatory uncertainty, further stalling progress in decarbonisation.
As budgets tighten, there is a growing risk that companies won’t prioritise sustainability initiatives, jeopardising the achievement of established targets.
Q. And what about regulatory and market developments? What can we expect to see next year?
Neon: An important regulatory milestone expected in 2025 is the update to GHG Scope 2 guidance, which will provide clearer standards for GOs, RECs and PPAs.
This update could disrupt the market for buyers currently relying on low-cost, low-quality solutions, forcing a shift towards more impactful decarbonisation strategies.
Although media coverage of decarbonisation has reduced, meaningful impacts are being achieved through ongoing sustainability programmes focused on energy efficiency, onsite solar installations and utility replacements.
Companies are prioritising practical solutions that drive measurable results, demonstrating that the decarbonisation journey is evolving from hype to tangible action.
Those able to adapt to evolving conditions and leverage new regulatory guidance will be well-positioned to lead the transition to a more sustainable future.
Q. What will 2025 bring in terms of energy management? What role will renewables play?
Anne-Katrin: The future of decarbonisation lies in innovative energy management services and strategic renewable energy purchases.
As the demand for renewable energy and distributed generation grows, businesses must focus on energy efficiency, fuel switching and low-emission technologies.
Collaborating with specialised partners will be key to navigating the transition to carbon neutrality and establishing a leadership position in the emerging green economy.
The maturation of biomethane markets is expected to progress in 2025, driven by the development of a unified European market for green gas certificates.
This will enable companies to optimise biomethane sourcing across their portfolios. As demand for biomethane continues to rise, companies that secure supply chains early will mitigate risks related to supply shortages.
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