Tensions in the Strait of Hormuz are heightening energy security fears and pressure on businesses, while surging demand from energy-intensive technologies is making investment in  alternative energy urgent, as 65% of UK executives say uncertainty is stalling transition investment.

In the face of the vast, trillion-dollar transition opportunity, insurer Beazley’s latest Spotlight on Energy Transformation 2026 finds that converging risks are raising barriers to capital deployment and delaying investment decisions – highlighting the need to transfer risk to unlock capital.

Based on a survey of 3,500 global business leaders, the report highlights both the scale of the transition opportunity and the complex, interconnected risks in delivering it. Progress is being slowed by several key execution challenges, even as the commercial opportunity grows, including:

Supply chain pressures, with 30% of UK executives citing transition-related delays as a top three macro risk

Infrastructure constraints, as legacy systems struggle to support a new clean technology, distributed energy system

Policy uncertainty, amid fragmented regulations and tariff pressures

Limited access to capital, as risk and uncertainty deters investment

A lack of historical performance data, making risks harder to price and transfer

The report came as the Fusion Industry Association (FIA) issued its latest annual report which found supply chain spending by the fusion industry increased by 24% in 2025.

Around half of the world’s private fusion companies shared their supply chain spending data, reporting a total spend of $538 million and projecting this to jump a further 27% in 2026, to $681 million.

The yearly report has long noted a “chicken and egg” gridlock, where fusion companies need serious supply chain capacity-building in the next decade, but struggle to give suppliers the long-term confidence to make these investments.

This report added signs are that the gridlock is easing, with 70% of fusion companies seeing an increase in established suppliers pivoting to fusion, and 25% observing existing suppliers successfully scaling up capacity to meet their needs. Meanwhile, 75% of suppliers made investments to expand fusion capacity in the last year, ranging from $30,000 to $65 million.

Suppliers also report that the frequency and substance of their conversations with fusion companies have notably improved over the last year. However, there is still work to do, as 69% continue to report a lack of long-term visibility of fusion needs, making planning and investment difficult.

However, bottlenecks also remain in key areas, which could constrain progress. Many respondents face constraints right now in power systems and power components (48%), heat management technologies (44%), and vacuum vessels and pumps (both 32%).

A particular worry was fusion fuel cycle systems, named by 48% of fusion companies as a major future concern. Fuel cycle systems underpin the production of fusion fuels and will be essential to sustaining long-term operations at commercial scale. In response to these concerns, 54% of fusion companies plan to work with external suppliers to develop fusion fuel cycle technologies, and the same number plan to develop these in-house (some plan to use both approaches).

Andrew Holland, CEO of the FIA, commented: “Our fourth annual report sees considerable progress in the relationship between fusion developers and their supply chain. We see signs of the “chicken and egg” gridlock raised in previous reports easing, as supplier relationships improve and new and existing suppliers invest in scaling up capacity to meet the sector’s growing needs. Nonetheless, we are still in the engineering phase of the challenge, and while there is much to be optimistic about, demands on the supply chain will expand to serve commercial fusion machines. All players need to have an eye on those approaching tipping points.”

“The global energy crisis combined with the vast demands of AI mean rising pressure on the fusion industry to make limitless clean energy a reality,” continues Holland. “In large part, the “winner” of this race to fusion will not be the country that gets there first, but the one with the strongest, most integrated supply chain. Building that capability and capacity will need a truly collaborative effort between policymakers, investors, the supply chain and fusion companies.”

Beazley added as businesses contend with a confluence of risks that can distract from delivery, specialty insurance can help unlock investment by assessing, pricing and managing the complex, interconnected risks they face. In doing so, it gives companies and investors the confidence to commit capital and move transition projects forward.

Kelly Malynn, head of Transition & Emerging Risk, Beazley, commented: “From surging energy demand driven by technological transformation to the need for greater energy security and resilience, the energy transition is one of the biggest commercial opportunities of our time. But ambition is running ahead of readiness, with many businesses and infrastructure struggling to advance

“Specialty insurance has a critical role to play. Our sector has been at the forefront of every major technological and energy shift, and now is the time for the industry to step up again. By adapting at pace, crafting the solutions, and pooling our industry’s cross-disciplinary expertise and risk data, we can support businesses to move forward at scale. It is critical that we act now, because the energy transition will not wait.”