SEB Outlook Examines How Global Energy Security Concerns Are Reshaping Sustainable Finance and Industrial Decarbonisation

SEB Outlook Examines How Global Energy Security Concerns Are Reshaping Sustainable Finance and Industrial Decarbonisation

(IN BRIEF) SEB’s latest Sustainable Finance Outlook examines how geopolitical disruptions linked to the Middle East conflict are accelerating the global transition toward clean energy systems and alternative fuels. The report argues that Europe’s continued dependence on imported fossil fuels is increasing investment momentum in electrification, battery infrastructure and energy security solutions. It also highlights the growing importance of alternative fuels in sectors such as chemicals, aviation and logistics, where direct electrification remains difficult. SEB reported that global sustainable bond issuance reached USD 503 billion in the first quarter of 2026, up 14 percent year-on-year, although financing activity in hard-to-decarbonise sectors remains limited. The report also explores mounting financial pressures facing Europe’s aviation industry as rising kerosene prices, carbon costs and expensive sustainable aviation fuels force airlines to rethink long-term decarbonisation and fuel diversification strategies.

(PRESS RELEASE) STOCKHOLM, 12-May-2026 — /EuropaWire/ — SEB has released the latest edition of its Sustainable Finance Outlook, outlining how geopolitical instability and disruptions linked to the war in the Middle East are intensifying the global push toward clean energy systems and non-fossil fuel alternatives. The report examines how growing concerns around energy security are reshaping investment priorities across sectors including aviation, chemicals, transport and logistics.

According to the report, Europe’s dependence on imported energy has once again become a major vulnerability following renewed disruptions to global oil and gas markets. SEB argues that the long-term consequence is likely to be a faster transition toward electrified transport systems and cleaner energy infrastructure, particularly as governments and industries seek to reduce exposure to geopolitical risks tied to fossil fuel supply chains.

Thomas Thygesen, Head of Strategy and ESG in SEB Equity Research, said the current situation mirrors earlier energy supply concerns experienced in recent years and could accelerate investment in non-fossil energy systems. He noted that electricity grids and battery technologies are emerging as major bottlenecks in the transition, creating what he described as a potential investment supercycle in those areas.

The report also highlights the wider economic implications of disruptions affecting the Strait of Hormuz, emphasizing how heavily industries still rely on oil-based products beyond transportation fuels. SEB points to sectors such as chemicals, plastics, fertilizers and aviation fuel as examples where fossil fuel dependency remains deeply embedded in industrial production processes. As a result, the report stresses the growing need for alternative fuels in sectors that cannot easily transition to direct electrification.

In addition to analysing energy transition trends, the Sustainable Finance Outlook includes an update on the global sustainable finance market. Despite heightened geopolitical tensions and market uncertainty, sustainable bond issuance continued to expand during the first quarter of 2026. According to Samantha Arpas, Sustainable Finance Specialist at SEB, global sustainable bond issuance reached USD 503 billion during the period, representing a 14 percent increase compared with the same quarter last year.

However, the report notes that sustainable financing activity in sectors such as chemicals, airlines and transportation and logistics still represents less than one percent of the broader sustainable bond market. SEB says this illustrates the ongoing difficulties associated with scaling cleaner fuel alternatives and financing decarbonisation efforts in industries with high dependence on fossil fuels.

The aviation sector receives particular attention in the report due to the combined impact of rising fuel costs and expanding carbon pricing exposure across Europe. Gregor Vulturius, Lead Scientist and Senior Advisor in Climate and Sustainable Finance at SEB, said kerosene prices have nearly doubled since the conflict began, increasing pressure on airlines already facing stricter environmental regulations and decarbonisation requirements.

Vulturius explained that airlines are increasingly being forced to reassess their fuel strategies as sustainable aviation fuel (SAF) and carbon pricing costs continue to rise. He added that while sustainable fuels remain significantly more expensive than conventional jet fuel, the aviation industry’s ability to manage future cost pressures will depend on factors such as passing costs on to passengers, optimising fleet operations, maintaining policy certainty and securing more competitive access to SAF and carbon removal solutions.

Issued four times annually, SEB’s Sustainable Finance Outlook provides sustainability-related market analysis and transition insights for financial institutions, corporations and decision-makers across the bank’s core markets. The publication currently reaches an audience of more than 3,000 readers.

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For more information, contact:
Gregor Vulturius, Lead Scientist and Senior advisor in Climate & Sustainable Finance
+46 70 739 2016
gregor.vulturius@seb.se

Press contact:
Petter Brunnberg, Head of Media Relations & External Communication
+46 70 763 5166
petter.brunnberg@seb.se

SEB is a leading northern European financial services group with international reach. We exist to positively shape the future with responsible advice and capital, today and for generations to come. By partnering with our customers, we want to be a leading catalyst in the transition to a more sustainable world. In Sweden and the Baltic countries, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the United Kingdom, we have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients. The international nature of SEB’s business is reflected in our presence in more than 20 countries worldwide, with around 18,400 employees. At 31 March 2026, the Group’s total assets amounted to SEK 4,123bn while assets under management totalled SEK 2,863bn. Read more about SEB at sebgroup.com.

SOURCE:  Skandinaviska Enskilda Banken AB