J.P. Morgan Asset and Wealth Management examines the energy transition through both its successes and constraints, arguing the data sits between optimistic and pessimistic narratives. Global decarbonization is advancing only 0.4% to 0.7% annually, while fossil fuel use still grows 1.5% and clean technologies capture 66% of energy investment.
PolySandra: 2026 Eye on the Market midyear energy update
J.P. Morgan Asset Management
Michael Cembalest
Research
49 Pages
Key Takeaways
Transition remains gradual: Global decarbonization is advancing just 0.4% to 0.7% annually, while fossil fuel consumption continues growing 1.5% per year.
Capital keeps shifting: Renewables, grids, storage, efficiency and electrification are projected to capture 66% of roughly $3.4 trillion in global energy investment during 2026.
EVs displace oil: Chinese EVs displaced nearly 34 million tonnes of oil in 2026 H1, equivalent to 1.35 million barrels daily and over 1% of global demand.
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