About the FT-Nikkei Investing in America Series
Launched in 2022, the FT-Nikkei Investing in America project has become a signature initiative by the Financial Times and Nikkei in the US. This collaboration highlights the key issues faced by foreign investors in the US.
Since its launch, the project has focused on how US cities attract investment from global multinationals, especially in a climate of economic uncertainty and evolving policies.
Our in-depth reports cover factors such as workforce, education, policy and culture in each city.
The FT and Nikkei host exclusive dinners in each city, convening business leaders and policymakers to discuss that city’s attributes and opportunities in relation to attracting foreign direct investment.
Founding Partner
The FT-Nikkei Investing in America Series is supported by its founding partner McKinsey & Company. They help to fund the reports and dinners, they do not determine the city rankings.
The reports are written and edited by Financial Times journalists and are editorially independent.
Partner views stand alone. They are separate from the FT and the FT-Nikkei Investing in America Series.
Building the energy system of the future
The energy transition has gathered significant momentum as the world rallies to meet 2050 net-zero targets. But despite notable advancements in low-carbon technologies like hydrogen, solar power, and wind energy, recent findings from McKinsey’s Global Energy Perspective 2024 reveal a sobering reality: the world is not on track to achieve the Paris Agreement’s goal of limiting warming to under 1.5°C.
To maintain momentum in the energy transition, the scaling up of decarbonization technologies is essential, and it needs to happen quickly. While the project pipeline for many of these technologies appears robust, another recent McKinsey article highlights that a growing number of projects are failing to reach final investment decision (FID) in Europe and the United States, putting the pace of the transition at risk.
At present, most regions have only achieved about 10 percent of the required deployment of low-emission technologies needed by 2050. Several factors contribute to this shortfall, including weakened business cases, low cost-competitiveness, and insufficient large-scale testing of new technologies. These challenges are influencing investor appetite, indicating that more decisive action is needed to move projects to FID and beyond, especially in an environment of higher interest rates and rising costs.
At the same time, government policies are creating opportunities for private sector players that could reshape the transition and unlock new growth pathways for forward-thinking organisations and regions. The US Inflation Reduction Act of 2022, aims to fund clean energy and lower the nation’s carbon emissions by 2030. It is one of three major US investment bills passed since November 2021 designed to reinvigorate America’s global economic competitiveness, innovation and industrial productivity.
To establish a sustainable economy, leaders at the federal, state, and local levels can work with industry leaders to tackle three specific challenges: complex service procurement timelines, supply chain shortages, and permitting restrictions, thus creating opportunities for all players in the ecosystem.
Notably, Texas—the traditional home of the US oil and gas sector—leads the country in renewable energy production (as measured in megawatt-hours). Planned carefully, it could also become a global decarbonization hub—helping to meet both current and future energy needs.
Houston is a magnet for many Fortune 500 companies across several vital sectors, making it a hub of innovation and investment. It is also home to a diverse and highly specialized workforce with institutional energy sector knowledge. While demand for talent in traditional oil and gas is not going away, some of the knowledge, skills and competencies can be transferable to green energy businesses, according to a recent report, which is good news for renewable energy employers.
By expanding on decades of experience across the energy value chain, including wind energy, utility-scale solar power, and carbon capture projects, the United States, and Texas specifically, are well placed to accelerate the action needed to meet net-zero goals. Reinvigorating momentum in low-carbon technology is not only necessary for the planet, but an opportunity to lead in the energy transition.