The MHI 2026 Energy Transition Leaders’ Survey

The New Realism: Decarbonization Priorities in Leadership and Technology

Economic volatility, geopolitical instability, changing trade policies — the uncertainties impacting the energy industry are intense and constantly evolving. Yet through it all, demand for electricity and reliable power keeps growing, and the need to decarbonize energy usage remains constant. Increasing demand is a long-term trend based on growth in emerging economies, the proliferation of data centers driven by AI, and greater overall electrification. Meanwhile, the year 2050 and organizations’ decarbonization goals draw ever closer, while global temperatures continue to rise.

How are leaders in the energy industry handling these conditions? The latest results from the annual survey of energy executives by Mitsubishi Heavy Industries (MHI) and Utility Dive show them balancing optimism with realism. 

The overarching confidence we saw in the 2025 data has declined, but it’s not being replaced with abject pessimism. Rather, energy leaders are committed to finding technological solutions to drive the energy transition forward while managing costs and regulatory uncertainty. They’re also focused on strengthening their partnerships and internal teams to achieve their 2050 net-zero benchmarks. 

Executives largely remain confident in another key area — their own ability to guide their organizations through challenging conditions and reach their long-term goals. The survey data reveals that leadership across the wider energy landscape is adapting to changing conditions. It also shows where they are prioritizing their efforts and investments, and why they’re still confident they can make the energy transition a success.

Optimism declines but doesn’t disappear

We surveyed 135 leaders from the U.S., UK, Japan and Singapore, representing organizations in oil & gas, utilities, heavy industry, renewable energy, and power generation and distribution. Compared to last year, we saw a marked change in their confidence that the world will reach net zero by 2050.

How confident are you that the world will achieve net-zero carbon emissions by 2050?

Only one in ten said they were “extremely confident” in reaching net zero by 2050, down from nearly a quarter last year. There was also a 13-point change in those who were “very confident.” Overall, however, many more executives ranked themselves extremely, very or moderately confident, which shows that while there is greater hesitation in 2026 than in 2025, the mood remains positive that energy and heavy industry can successfully decarbonize.

When asked about the challenges to achieve net zero, responses reflected the uncertain policy environment surrounding emissions reduction.

What do you see as the biggest challenge to achieving net-zero emissions by 2050?

A lack of proven technology and financing challenges remained important, similar to the 2025 data, but policy issues clearly increased for executives this year. However, leaders maintain many reasons for optimism about the energy transition, with the growth of renewables emerging as the dominant response.

What gives you the greatest cause for optimism in the energy transition?

Along with these reasons for optimism, there remains an overarching commitment to decarbonization across the industry. Nearly a third (29%) said their organization places the same importance on achieving net zero that they did one year ago. Even more leaders responded that decarbonization targets are slightly more important this year (36%), and over a quarter (27%) said they’re much more important than just a year ago. 

The growth of renewables

Despite recent policy changes — particularly in the U.S. involving renewable energy tax credits and offshore wind permitting — the IEA expects global renewable power capacity to double by 2030. Solar photovoltaics (PVs) will comprise most of this growth, but wind, hydropower and geothermal power will all increase as well. We saw the optimism about renewable energy sources in survey respondents’ own words:

“The growth of renewables represents a tangible shift toward a more sustainable future. Unlike abstract promises, renewable energy is already reducing carbon emissions, lowering costs, and creating new jobs.”

– Survey Respondent

“As of early 2026, the data indicates we have hit a critical ‘tipping point’ where renewable energy is no longer just a green alternative but the dominant force in global power.”

– Survey Respondent

Leadership: An emphasis on technology

How are leaders across the energy industry viewing their roles and capabilities as challenges evolve? Overall, executives remain confident in their own ability to lead through the changes required and make the energy transition a reality, although we saw slight declines in confidence from last year.

How confident are you in your personal ability to lead through the changes required in your department to make the energy transition a reality?

When asked about the most critical leadership qualities, respondents valued strategic vision and technological literacy significantly higher than in 2025. This suggests that taking the long view and truly understanding which technologies will make a difference are growing priorities for leaders. Likewise, stakeholder communication increased in importance, showing that “soft skills” like communication are as important as technical skills.

How critical are each of the following leadership qualities for advancing the energy transition at your organization? *Percent responding “Extremely critical”

In terms of challenges to meet their organizational decarbonization targets, costs have become the primary issue, which is understandable in today’s inflationary environment. The cost of decarbonizing was the most commonly cited response in both 2025 and 2026, but we saw an increase in respondents citing the lack of financial support for new technologies.

What is the biggest barrier your organization faces in meeting its own decarbonization targets?

These challenges were also reflected in the findings around how leaders are prioritizing investments to achieve decarbonization targets. A majority (56%) cited the long-term value of these investments as “extremely important,” and 53% said the same for proven technology. Conversely, 42% listed innovative technology as “extremely important,” which is a -10 percentage point change from last year. This underscores how leaders are prioritizing solutions that can be relied upon for their effectiveness.

The role of AI in the energy transition

In 2026, AI emerged as a key aspect of technological innovation for driving the energy transition forward. Nearly three-quarters (74%) of executives said their organization is leveraging AI today to support decarbonization efforts. Productivity gains were the leading use case:

How are you using AI in your organization?

• Improving productivity: 45%
• Optimizing production processes: 37%
• Designing new technology: 9%
• Optimizing supply chains: 7%
• Other: 1%

MHI is already seeing AI-powered solutions improving efficiency in heavy industry. For example, Primetals Technologies’ Central Operation Cockpit (COC) uses AI for image recognition and inference during steelmaking processes. COC provides information to operators in real time so they can address slips or casting issues more quickly and improve overall energy efficiency.

AI-driven tools also support decarbonization by harmonizing distributed energy resources (DERs) so that more renewables can be connected to the grid. Smart sensors are critical to balancing solar generation, energy storage systems and conventional power sources for grid reliability. And, with solutions like digital twins, utilities can more accurately model their systems and conduct scenario planning to ensure grids are functional, resilient and incorporating greater numbers of DERs.

Partnerships: Long-term strategies matter

No organization can reach net zero solely on its own, and energy industry leaders recognize the importance of partnerships to leverage technology and expertise from numerous stakeholders. However, perceptions of the effectiveness of their current partnerships for reaching net-zero goals declined over the past year.

How effective are your current partnerships in driving your organization’s energy transition goals?

Nearly half (45%) said it’s most important to balance both immediate decarbonization goals and long-term strategic plans with their partnerships, although the percentage favoring long-term strategy was also a significant minority (41%). This reiterates how taking the long view is an important priority for executives.

Leaders placed the most value on the same two capabilities in their partners as they did in 2025, although the balance shifted slightly.

Which factor is most important when forming partnerships to support the energy transition?

The growing importance of shared values and goals suggests that energy leaders want to build lasting relationships with their partners based on organizational alignment. Both what a partner can provide and who they are as an organization are important for industry leaders when choosing partners.

The MHI solution

As renewable power generation grows, it’s increasingly understood that natural gas plays a key role as a complementary energy source while renewables’ intermittency is addressed. Growing demand from data centers and increased electrification means gas-powered plants are an important part of the energy mix while renewables and battery storage capabilities continue to scale. For example, MHI’s gas turbine combined cycle (GTCC) technology is providing reliable power while reducing CO₂ emissions by nearly 65% compared to coal-fired plants. Due to its greater thermal efficiency, GTCC technology lowers emissions and acts as a bridge to net zero while more renewables are incorporated into the grid.

Talent: Emphasis on internal capabilities

One notable change in the 2026 survey data is the sharp decline in leaders’ confidence in their organization’s ability to cultivate the necessary talent for the energy transition.

How confident are you in your organization’s ability to cultivate the talent needed for the energy transition?

Rather than attracting new talent to build their capabilities as we saw in 2025, this year, leaders are looking inward to focus on upskilling their current employees and creating new roles.

What are the most critical investments your organization is making in talent?

This trend may be attributed to the general economic uncertainty we see today that can limit hiring, along with the pace of technological innovation — specifically with AI — that calls for enhancing people’s current skills. This focus on internal development is reinforced by a reduction in partnerships with universities and research institutions as a key tactic to improve talent.

What strategies are you implementing to foster innovation within your teams?

The survey data demonstrates that talent is still an integral part of successfully reaching net zero, and leadership understands that people are the driving force behind technological and organizational change. Rather than looking externally for that expertise, however, executives are turning their focus inward and reinforcing the teams they already have.

Cautious optimism guides the way forward

A key theme in this year’s Energy Transition Leaders’ Survey is how industry executives don’t want the proverbial perfect to be the enemy of the good. As economic and policy conditions remain uncertain, they’re focusing on technology, strong partnerships and internal investments in talent. They’re seeking long-term value in their investments, and they remain committed to a net-zero future while still acknowledging the realities of cost increases and geopolitical changes.

Executives are still confident in their ability to guide their organizations through turbulent times, which we saw in their own words:

“My ability to align teams, drive innovation, and navigate complex change ensures strategic execution and stakeholder buy-in.”

– Survey Respondent

“Being a good listener to my colleagues enables me to not only lead but to get ideas from them.”

– Survey Respondent

These findings should reassure the wider industry that net-zero goals are still within reach, and that private sector firms across energy and heavy industry are aiming to make wise investments and build towards the future. The new realism is here, and it’s keeping leaders focused on tangible improvements to meet tomorrow’s decarbonization goals. 

[Survey demographics]: Methodology

This research is based on an online survey conducted from January 29 to February 12, 2026, of 135 senior-level executives from companies in utilities, energy, and other heavy industries. A quarter (24%) held C-suite roles, with the remainder split between VP (12%), Director (46%), and Manager (18%) roles, working in one of four countries:

[Flag icons for US, UK, Japan, Singapore]

Respondents by industry:

Respondents by revenue size: