Eight in 10 execs freeze green investments despite $389t net-zero pool

Global regulatory chaos peaks as 83% of firms halt transition funding.

Eight in 10 executives said uncertainty is holding back investment decisions, even as 42% said they are very prepared for the shift away from carbon fuels, according to Beazley's Spotlight on Energy Transformation 2026 report.

The findings come despite a global net-zero transition opportunity worth up to $389.2t (US$300t), with economic uncertainty stalling energy transition investment in Singapore and beyond.

“Energy transition is one of the biggest commercial opportunities of our time. But ambition is running ahead of readiness, with many businesses and infrastructure struggling to advance,” said Kelly Malynn, Head of Transition & Emerging Risk, Beazley.

Progress is being slowed by supply chain delays, infrastructure constraints, policy volatility, limited capital access, and a lack of historical performance data for new energy technologies, it added.

The study was based on a January survey of more than 3,500 business leaders and insurance buyers across the UK, US, Canada, Singapore, France, Germany, and Spain.

The findings come as tensions in the Strait of Hormuz raise fresh energy security concerns, whilst demand from data centres, artificial intelligence, and other energy-intensive technologies increases pressure on power systems.

The government had said that the current crisis could be more severe than the 1970’s oil shock, with global inflation likely to spread from energy to other sectors, with some economies at risk of slipping into recession.

Beazley said 83% of respondents believe that the diversity and complexity of global regulations are increasing operational risk, the highest amongst the markets in the survey.

On data centre operations, Cushman & Wakefield found that Singapore recorded a grid transmission loss rate of just 0.2%, making it the most power-efficient market among 107 data centre markets assessed.

The metric measures the share of generated power lost before it reaches customers through transmission and distribution networks. Higher loss rates may point to ageing infrastructure, grid congestion or system stress, which can affect data centre uptime and reliability.

However, a separate CBRE report warned that the country’s data centres are operating at occupancy levels above 95%, with severe capacity constraints pushing demand to alternative Southeast Asian markets.

Meanwhile, Beazley noted that insurance is becoming more important in transition projects because lenders and investors often require risks to be priced and covered before capital is released.

Climate risks are already affecting business operations, with 82% of respondents saying fires, floods, and heatwaves are influencing where and how their organisations operate, it added.

$1 = US$0.77