A new report from international law firm Womble Bond Dickinson, which has offices in Newcastle and Teesside, has highlighted a clear focus from major energy users to speed up decarbonisation efforts in the UK.

Energising Tomorrow, the firm's 2025 Energy Transition Outlook, gathering insights from over 1,300 global energy professionals and more than 500 UK energy suppliers, investors and major commercial energy users, has indicated a resilient and revitalised energy sector at a pivotal point in the transition to cleaner energy.

According to the outlook, businesses are reporting a focus on energy efficiency initiatives in their decarbonisation strategies. While high costs associated with such measures have previously led to a lack of enthusiasm, this year's report indicates over half (54%) are now prioritising energy-saving strategies.

Sarah Daun, partner at Womble Bond Dickinson, said: “Three-in-five (58%) of the businesses we surveyed put this change in emphasis down to a strong focus on environmental protection. In addition, over a third (36%) highlighted the moral imperative of ‘doing the right thing’, while a similar proportion (36%) pointed to the operational efficiencies decarbonisation bring.

"All-in-all, this is an approach which allows firms to tick both ethical and financial boxes, and one which the North East has already been leading the way in many of these areas. However, these are matters which can't be dealt with in a silo – collaboration is needed across sectors and the wider supply chain to optimise the successes seen to date and provide unique insights for future energy efficiency efforts."

Additionally, findings also showed most commercial energy users (68%) are currently relying on operating income to fund their decarbonisation efforts, with just under half (45%) planning to tap into government subsidies.

A rising confidence is also stimulating M&A activity, with the majority of respondents (47%) expecting to see substantial increases in deals.

Richard Cockburn, Head of Womble Bond Dickinson's UK Energy Sector, said: “There are various drivers behind this, from businesses starting to crystallise their strategies to more government support, all creating an improving environment which is encouraging businesses to press on with their growth plans.

"The trend may also be an indicator of smaller players combining forces to achieve the scale necessary to deliver on bigger projects. This is a particular issue for green hydrogen, where – up until now – smaller operators and start-ups have struggled to meet the demands of getting the technology off the ground.”

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