The evolution of the global energy system remains one of the most complex challenges of the 21st century. Meeting rising demand while reducing emissions requires technical progress, steady investment, and practical thinking—all of which continue to shape CPP Investments’ approach to the sector.
Those ideas were central to the 2025 CEO Energy Summit, held in Banff this October. Leaders from across CPP Investments’ Sustainable Energies portfolio joined academics and industry specialists to examine how technology, geopolitics, and capital are influencing the pace and direction of growth across the global energy system—particularly as companies respond to shifting customer needs and new patterns of demand.
Compared with previous years, this year’s discussions felt more grounded. There was broad agreement that the system is evolving quickly but unevenly—and that progress depends as much on adapting to customer realities as it does on advancing technology. The story is more about evolution than revolution.
Here are six themes that stood out:
What progress really looks like
A conversation between Bill Rogers, Managing Director, Head of Sustainable Energies, and Sherri Goodman, Senior Fellow with the Polar Institute and the Environmental Change and Security Program at the Woodrow Wilson International Center in Washington, D.C. framed the dual challenge facing global energy systems. That is, how to meet rising demand and strengthen energy security while managing the growing risks of climate change—which Goodman described as a “threat multiplier” that amplifies stress on infrastructure, supply, and stability.
The message was clear: global energy demand is accelerating, and security considerations are once again shaping investment and policy decisions. The International Energy Agency projects electricity use to grow by more than 3% annually through 2030, driven by electrification, economic expansion, and digitalization. Even as renewables scale up, conventional energy continues to play a vital role in maintaining reliability—a reminder that progress in the energy system is evolutionary, not instantaneous.
While clean technologies are advancing, they still depend on enabling infrastructure—grids, ports, and permitting systems—that hasn’t kept pace. In both North America and Europe, delays in grid expansion were cited as one of the biggest barriers to growth. CPP Investments’ focus is on financing profitable, credible pathways that balance affordability, access, and emissions reduction, Rogers noted.
“We focus on financing real, practical pathways that cut emissions without compromising access or affordability,” he said. “It’s not about chasing perfect solutions—it’s about steady progress, grounded in sound economics and a long-term view.”
Where AI is adding value
On a macro level, AI is now a major driver of electricity demand growth, particularly in developed markets. After nearly two decades of flat power consumption, data centres and AI computing are reshaping the outlook—pushing utilities, developers, and investors to plan for new capacity at unprecedented scale.
At the same time, AI is emerging as a key tool for transformation within companies themselves. CPP Investments’ Portfolio Value Creation (PVC) team is seeing it used across its portfolio: optimizing grid operations, improving predictive maintenance, and identifying operational efficiencies in real time. In sectors such as power generation, logistics, and industrials, participants described how AI is already helping forecast commodity flows, refine trading strategies, and support decarbonization initiatives.
“The real breakthrough isn’t the technology alone, it’s how leaders rebuild their operating models around it,” said Lis Rehder, Managing Director, PVC. “AI won’t transform your business unless you let it rewrite how decisions, not just tasks, get made.”
Geopolitics comes to the fore
The role of geopolitics in energy investing has shifted from background context to a core consideration. Evolving political dynamics are shaping decisions about capital allocation and project development.
Amid global conflicts, industrial policy shifts, and resource nationalism affecting energy markets, the need for regional awareness is growing—including understanding how local regulation, political cycles, and stakeholder priorities influence both risk and return. These factors are now part of routine due diligence, especially for long-term investors.
“Macroeconomic and geopolitical factors are now central to how we think about investment pacing and positioning,” Rogers noted.
For CPP Investments, that means operating across regions with different timelines, policy frameworks, and customer needs—and tailoring capital strategies to fit.
A key part of that equation is proximity to the customer. As the public sector steps up as both a regulator and a direct customer for new energy infrastructure, governments are increasingly shaping demand signals and project economics. Understanding that relationship—from national grid strategies to procurement frameworks—is becoming as important as understanding price curves or supply chains.
The discussion underscored that while the fundamentals of financing large-scale projects haven’t changed, the context has. In today’s environment, investing in energy means understanding not only markets and technologies, but also the evolving expectations of those who ultimately depend on—and pay for—the system itself.
The importance of trust
Trust—not just as a communications issue, but as a real factor in determining whether and how projects move forward—is emerging as a key issue.
A panel discussion with leaders from Teine Energy, Nephin Energy, and South Bow Energy examined how companies are earning the legitimacy to operate and expand in markets with rising expectations around environmental and social impact. Examples included Indigenous partnerships in Western Canada and new European frameworks that link community participation to faster permitting.
While the approaches differ, the takeaway is clear: trust has become a tangible driver of business performance. Companies that build alignment with local stakeholders are gaining earlier access to opportunities, smoother approval processes, and more resilient partnerships over time.
“We see trust as a core part of the investment thesis,” said Rogers. “It can accelerate value creation or constrain it—the difference is how it’s managed.”
Attendees agreed that capital alone isn’t enough to deliver on progress. Companies also need durable relationships with communities, regulators, and other stakeholders to ensure projects are both viable and supported. The discussion also referenced CPP Investments’ recent Indigenous equity partnership in Wolf Midstream as an example of shared ownership building long-term alignment.
Connecting dots across the system
CPP Investments takes an integrated approach to energy—working together across asset classes with connections among teams including Sustainable Energies, Infrastructure, Credit, Private Equity, Active Equities, and Portfolio Value Creation. This structure supports investment across the full energy value chain—from grid infrastructure and storage to industrial decarbonization and new fuels.
Rogers described this as “investing in the system, not just the pieces,” pointing to the value of long-term capital that can move across sectors and strategies. Several participants noted that this approach doesn’t just benefit CPP Investments—it benefits its portfolio companies as well. Being part of the CPP Investments ecosystem gives them access to a broader network of expertise, global insights, and patient capital that can be deployed to scale ideas and accelerate growth.
That ability to connect insights and capital across the Fund is increasingly what sets CPP Investments apart. It’s why many of its partners view it not only as an investor, but as a strategic ally in building the next generation of energy infrastructure.
Investing beyond the power sector
The scale of the energy transition holds relevance well beyond the power sector.
Rather than focus solely on reducing emissions within its portfolio, CPP Investments aims to support decarbonization across the broader economy. Its Decarbonization Investment Approach backs companies that are transitioning their business models and scaling new clean technologies.
This approach is designed to reflect how the real economy works—with emissions, growth, and reliability all needing to be managed at the same time. “We’re investing with the energy transition in mind, not just in it,” said Rogers.
This shift from a sector-specific view to a systems-level perspective reinforces the importance of capital that can be patient, flexible, and aligned with long-term structural change. Sectors like steel, cement, and agriculture—often overlooked in net-zero discussions—are where transition finance remains both necessary and underdeveloped.
A transition measured in years, not headlines
The energy system is advancing, but in uneven and often contradictory ways. Near-term demand growth, permitting challenges, and supply-chain pressures persist as headwinds, reminders that progress rarely moves in a straight line. Yet continued technology innovation, evolving regulatory frameworks, and growing customer demand for cleaner, more reliable energy are creating powerful long-term tailwinds.
Navigating that balance will take more than technology and capital. It will require trust, adaptability, and a clear view of both current realities and long-term goals. That’s where CPP Investments can have real impact, by bringing patient capital, cross-sector expertise, and a global perspective to an industry that needs all three.
It’s work measured not in headlines, but in lasting outcomes that reflect the value of steady, long-term investment.
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