Daily Update — April 1, 2025
EU Cleantech; Global Economic Outlook; and Private Equity Focus on Fossil Fuels
Today is Tuesday, April 1, 2025, and here’s your curated selection of essential intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Listen: Europe's Clean Industrial Deal: Will it work?
As global competition and trade tensions rise, the European Commission has pledged to create a supportive business environment for clean technology manufacturing and deployment, investing €100 billion to support manufacturing. But will this be enough to stave off the risk of deindustrialization?
In this episode of “Energy Evolution,” S&P Global Commodity Insights correspondent Camilla Naschert explains the Clean Industrial Deal, the EU's latest legislation on competitiveness. Ben McWilliams, affiliate fellow at think tank Bruegel, lays out the global trade and investment picture on solar, batteries and electric cars, and explains why the EU's plan may work.
Explore S&P Global Commodity Insights’ Clean Energy Technology offerings.
Economy
Global Economic Outlook Q2 2025: Spike In US Policy Uncertainty Dampens Growth Prospects
The macroeconomic landscape is being shaped by aggressive policy moves from the new Trump administration, which has adopted a "move fast and break things" approach. This is particularly evident in the US’ tariff policies. The administration began its term with threats of steep tariffs on Canada and Mexico and a rapid succession of policy announcements and reversals, contributing to an unprecedented spike in the Federal Reserve’s US policy uncertainty index.
US markets have experienced volatility in the first quarter, contrasting with a more favorable outlook for Europe and parts of Asia. Initially, markets anticipated inflationary pressures from new tariffs and a tighter labor market. However, the surge in policy uncertainty has reversed this trend, leading to declines in US equity markets and a weakening dollar. Despite these fluctuations, labor markets remain resilient, with unemployment rates low and job creation continuing.
Private Markets
Private equity shifts focus to fossil fuels from renewables
Global private equity and venture capital investments in fossil fuels significantly grew last year, driven by major oil and gas companies divesting assets and streamlining their portfolios. In 2024, private equity investments in fossil fuel companies surged 131% year over year to $15.31 billion, while investments in renewable energy increased about 64% to $25.91 billion, S&P Global Market Intelligence reported. The last two quarters of 2024 were particularly robust for the oil and gas sector, with private equity investment in the sector surpassing that of renewables, highlighting a strategic shift in capital allocation.
Some analysts suggest that the ongoing asset sell-off by large oil and gas firms is creating opportunities for private equity in fossil fuels and renewables. However, it is not clear if this momentum will continue in 2025 as early figures indicate a decline in deal value for both sectors in the first two months of the year.
In case you missed it
- US President Donald Trump on March 25 ordered a 25% tariff on all car and light truck imports starting April 2, and a similar tariff on auto parts starting May 3.
- Ukrainian state-owned energy company Naftogaz said March 28 that its gas production facilities were damaged again by a Russian attack — the 18th attack targeting the company's infrastructure since the invasion began and the eighth in 2025.
- Brokered deposits at US banks decreased consistently throughout 2024 as a now-withdrawn proposal to limit them as a source of funds hovered over the industry.
Upcoming events
- Moneyball: The impact of sports media rights on the US video market | April 3 (Webinar)
- Latin America Spotlight: Corporate and Infrastructure Ratings | April 8 (Webinar)
- Sustainable1 Summit 2025 | April 30 (In-person: London) and June 26 (In-person: Singapore)