Europe - Energy:  The Russian invasion of Ukraine in 2022 accelerated Europe’s transition away from Russian fossil fuels and toward renewable energy. By 2024, renewables accounted for 46.9% of EU electricity generation, up from 34% in 2019, while fossil fuels fell to a historic low of 29%. For the first time, wind and solar together surpassed fossil fuels, generating 30% of EU electricity in the first half of 2024 compared to 27% from coal and gas. Wind power grew by nearly 10%, and solar by 20%, supported by favorable conditions and capacity additions. Hydropower also rebounded after years of drought, helping renewables exceed half of the EU’s power mix.

Fossil fuel generation dropped sharply, with coal output falling by 24% and gas by 14%, driving a 17% overall decline in fossil-based electricity. This structural shift reduced EU power sector emissions to less than half their 2007 peak and cut reliance on imported gas, saving billions in energy costs. Electricity demand, which had slumped during the energy crisis, rebounded slightly by 0.7% in 2024 but remains below pre-crisis levels.

The European Green Deal continues to anchor this transition. It legally binds the EU to climate neutrality by 2050 and a 55% emissions reduction by 2030, supported by the European Climate Law. Financing comes from the NextGenerationEU Recovery Plan, REPowerEU, and the EU’s seven-year budget, with over €500 billion allocated for climate and energy projects. However, the European Commission estimates an annual investment need of €1.24 trillion—about 7.8% of EU GDP—to meet 2030 targets, leaving a significant funding gap. Legislative updates under the Green Deal include the Carbon Border Adjustment Mechanism (CBAM), an expanded Emissions Trading System, and the Net-Zero Industry Act, aimed at scaling clean tech manufacturing. Despite progress, watchdogs warn of delays and political pushback that could weaken climate ambition during the 2024–2029 term.

Europe - Rare Earth Metals: Europe has virtually no domestic rare earth production and relies heavily on imports, sourcing 70–98% of its rare earths and magnets from China. This dependency creates strategic vulnerabilities for Europe’s green and digital transition goals. Although EU imports fell nearly 30% by 2024, totaling just 12,900 tons, almost half still came from China (46%), followed by Russia (28%) and Malaysia (20%). Analysts warn that rare earths remain a blind spot in Europe’s resource strategy, leaving the region exposed to supply shocks and “economic blackmail.”

Europe is responding through the Critical Raw Materials Act (CRMA), which launched 47 strategic projects across 13 member states focused on mining, processing, and recycling. By 2030, the EU aims to meet 10% of demand through domestic extraction, 40% through domestic processing, and 25% through recycling, while ensuring no more than 65% dependence on a single country. To accelerate progress, the EU is proposing emergency stockpiles and fast-track permitting for strategic projects, reducing licensing timelines from 5–10 years to just 27 months. Rare earth ETFs and long-term offtake agreements are also gaining traction in both Asia and Europe as tools to hedge against price volatility.

To achieve strategic autonomy, the EU and U.S. are investing heavily in domestic refining and magnet production. Governments are deploying state-backed capital and guaranteed pricing models—such as the U.S. guaranteeing $110 per pound for neodymium and dysprosium—to de-risk projects and attract private investment. At the same time, Central Asia, particularly the Tien Shan and Pamir ranges, is gaining attention for its untapped reserves, positioning itself as a potential future competitor in global supply chains.

Asia - Energy: Energy demand in Southeast Asia is growing at one of the fastest rates globally, projected to rise 25% by 2035, driven by urbanization, industrialization, and population growth. Currently, fossil fuels dominate the region’s energy mix, accounting for around 80% of primary energy and 72% of power generation in 2024, with coal providing nearly half of electricity. Despite net-zero pledges by eight ASEAN countries—Brunei, Malaysia, Singapore, and Vietnam by 2050; Indonesia by 2060; and Thailand by 2065—progress is slow. Coal remains entrenched, and LNG imports, seen as a cleaner alternative, face cost and supply challenges, especially after Europe’s surge in LNG demand following the Ukraine war.

South Asia faces similar hurdles. Coal still supplies about 60% of power generation and plans to shift to LNG were disrupted by high prices and competition with Europe during the energy crisis. The region needs $367 billion in investment to stay on track for its 2050 decarbonization goals, but pandemic-related fiscal constraints and rising energy costs have slowed progress. While renewable energy capacity is expanding—solar and wind installations grew 30% between 2020 and 2024, clean energy investment remains far below required levels. ASEAN received only 2% of global clean energy investment in 2023, despite accounting for 9% of the global population.

Asia is investing in advanced technologies to accelerate its transition. Japan’s New Energy and Industrial Technology Development Organization (NEDO) and IHI Corp are leading projects under the Green Innovation Fund, including the development of ammonia-powered gas turbines and hydrogen infrastructure to support carbon-neutral aviation and power generation. Malaysia, through partnerships with IHI and Gentari, is building a green ammonia value chain aligned with its National Energy Transition Roadmap, aiming for large-scale hydrogen adoption by 2030.

Asia - Rare Earth Metals: China remains the undisputed leader in the global rare earth industry, controlling about 59% of mining, 91% of refining, and 94% of magnet manufacturing. This dominance gives Beijing significant leverage over global supply chains, particularly in sectors such as electric vehicles (EVs), wind turbines, and defense systems. The Bayan Obo mine in Inner Mongolia continues to be the world’s largest, rare-earth production site, underscoring China’s central role.

Beyond China, other Asian nations are working to reduce their dependence. Myanmar has emerged as a major source of heavy rare earths, though its mining activities are often linked to environmental degradation and conflict, with unregulated operations along rivers like the Mekong posing severe ecological risks. Japan and South Korea are investing in overseas assets and advancing recycling technologies to diversify supply chains. India is also stepping up, tripling funding for rare-earth magnet manufacturing incentives to ₹70 billion (around $788 million) and unlocking untapped reserves to strengthen its position in the global market.

Global investment in rare earth mining is surging, projected to exceed $10 billion by 2025, driven by demand from EVs, renewable energy, and defense applications. Across Asia, India and Pakistan are actively entering the supply chain, with Pakistan shipping its first rare earth minerals to the U.S. under a $500 million agreement. Japan is forming financing alliances with the U.S. to secure rare earth resources and strengthen supply chain resilience.

Global demand for rare earths is expected to continue rising, with growth of 6–8% recorded in 2024 and projections of further acceleration through 2030. Much of this demand is driven by clean energy technologies such as EVs, renewable energy systems, and grid networks. Asia’s production is projected to reach 360 million kilograms in 2025, with annual growth of around 6%, while Europe will expand more slowly, relying on recycling, secondary supply, and policy frameworks rather than new large-scale mining projects. Demand for key elements such as neodymium, praseodymium, dysprosium, and terbium—essential for high-performance magnets—is expected to more than double by 2030.

Despite these opportunities, significant risks remain. Europe is vulnerable to supply shocks due to its limited domestic mining and refining capacity. Asia faces geopolitical risks stemming from its over-reliance on China, which could destabilize regional supply chains. Globally, environmental concerns and slow permitting processes threaten to hinder the development of new projects. These challenges underscore the delicate balance between growing demand, strategic competition, and the need for sustainable resource management.