There in 2024, we witnessed a dramatic reversal in the global energy transition. It went on to have the greatest temperatures on record, with temperatures skyrocketing over 1.5°C above preindustrial levels. This alarming trend has prompted renewed interest in nuclear energy as countries strive to address climate change while meeting growing energy demands. Still, projections indicate global nuclear power capacity will grow at a minimum by more than one-third by 2035. More than 40 countries currently collaborate on integrating this clean energy source into their national energy portfolios.
Additionally, nuclear output has recently shot up as well. This dramatic rise comes hand-in-hand with record-high consumption of all three fossil fuels—oil, natural gas, and coal—mostly fed by China’s ever-growing energy appetite. Bipartisan action is needed because as it stands today, China dominates the refining of 19 of 20 energy-related strategic minerals. It has a consistent average 70%+ market share. This preeminence has unleashed worldwide anxiety over American energy security. It comes right alongside sweeping new export controls on rare earth elements and battery components.
Countries across the globe fight against the burdens of a changing climate and an unpredictable energy supply. The World Energy Outlook 2025 report emphasizes the urgent need to diversify energy sources and to increase cooperation among governments. This multifaceted approach will be key to guiding our country through the many uncertainties that loom in an ever-changing and volatile future.
Rise of Nuclear Power Amid Climate Change
In fact, the International Energy Agency (IEA) predicts significant expansion of nuclear power capacity across the globe in the coming decade. As nations around the world look to expand access to energy that can help power economies and address climate change by cutting emissions, nuclear energy’s role is more important than ever.
Even though the IEA has nuclear capacity growing by a third by 2035. Over 40 other countries are preparing to advance new nuclear initiatives of their own. This reversal represents an increasing appreciation of nuclear power. Some view it as a viable, immediate solution to lowering carbon emissions and regaining energy independence.
“This underscores the importance of secure and affordable electricity supply.” – World Energy Outlook 2025 report
Electrification is increasingly possible and desirable across sectors like transportation and industrial processes. In its absence, we should expect a much greater dependence on nuclear energy. Notably, the report highlights that electricity only represents 21% of total final consumption today. Its influence is felt heavily in the sectors that make up over 40% of the global economy.
Record Consumption and Renewables Deployment
Nuclear energy propelled very far right in 2024. At the same time, China’s rapidly growing economy drove an unprecedently large increase in fossil fuel use. Oil, natural gas, and coal consumption all hit new highs, driving up energy-related emissions. Indeed, coal demand has increased at a pace 50% quicker than that of natural gas since the beginning of 2019.
Installed renewable capacity jumped to nearly 19.6 TW, a fourfold leap from prior years.
Global investment in data centers is expected to reach $580 billion by 2025. As a result, the need for clean, renewable, and sustainable electricity is growing. Electricity demand The IEA forecasts that by 2035, electricity will account for one-third of total final consumption. This further underscores the critical role dispatchable renewables will need to play in spurring future renewables.
“Analysis in the World Energy Outlook has been highlighting for many years the growing role of electricity in economies around the world. Last year, we said the world was moving quickly into the Age of Electricity – and it is clear today that it has already arrived.” – World Energy Outlook 2025 report
The move toward cleaner, more renewable energies comes with its own set of challenges. As they chart their investments in cleaner technologies, governments will increasingly need to manage these competing pressures on affordability, access, international competitiveness, and climate change objectives.
Energy Security and Strategic Minerals
Global energy security is today exposed to fresh vulnerabilities beyond the traditional supply-side risks tied to oil and gas. Consequently, critical minerals supply chain vulnerabilities have recently come into sharp focus. China’s recently announced export controls on rare earth elements have stoked fears about energy security even further.
“Traditional hazards affecting the security of oil and gas supply are now accompanied by vulnerabilities in other areas, most visibly in critical minerals supply chains.” – World Energy Outlook 2025 report
These minerals currently in the crosshairs are extremely important to the development of new and emerging technologies. They power our power grids, batteries, EVs, AI chips, and even our defense systems. As of November 2025, over half of these strategic minerals are under at least partial export control.
Fatih Birol, executive director of the IEA, called the current energy security crises an “historic first.”
“When we look at the history of the energy world in recent decades, there is no other time when energy security tensions have applied to so many fuels and technologies at once.” – Fatih Birol
Countries around the world are at an inflection point in the energy transition. Specifically, they need to innovate and control costs, but get better at communicating improvements in upcoming cash flows. These actions are necessary to diversify a highly concentrated nuclear market with very concentrated sectors in IPH and uranium mining.