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Forbes
2 days ago
- Business
- Forbes
What Is Crypto Adoption, And Is It Increasing? Examining Global Growth In 2025
While challenges remain, practical use cases for crypto are emerging across sectors. Crypto adoption refers to the widespread use of digital assets across various sectors, including individuals, investors, businesses and governments. This can involve trading, payments, remittances and the use of blockchain-based financial services. Key measures of adoption include wallet creation, transaction volume, institutional participation and regulatory engagement. This article examines the state of crypto adoption in 2025 by analyzing where growth is occurring and what is driving it. It explores global trends, regional variations, and the key factors influencing adoption, including economic conditions, legal clarity and access to digital infrastructure. What Is Crypto Adoption? The term 'crypto adoption' refers to the growing integration of cryptocurrencies such as bitcoin, solana, and USDT stablecoins into everyday financial and digital activities. This can include using crypto for payments, investment, remittances or accessing decentralized applications. Adoption also extends to businesses accepting crypto, financial institutions offering related services and governments exploring blockchain for public infrastructure. As more people and organizations engage with digital assets, these technologies become embedded in broader economic systems. Growth in adoption is often supported by regulatory clarity, user-friendly platforms and increased awareness of crypto's potential benefits and risks. Key Drivers Behind Crypto Adoption Rates Several factors are influencing the pace and direction of crypto adoption around the world. Economic conditions, regulatory clarity and access to digital infrastructure remain crucial factors in determining whether individuals and institutions engage with digital assets. In higher-income regions like North America, institutional demand and regulated investment products play a significant role, whereas in emerging markets, adoption is often driven by the need for financial access and currency stability. This section examines how these and other factors influence adoption rates across various regions and user groups. Crypto is gaining ground in regions where access to traditional banking remains limited. In Sub-Saharan Africa, where many individuals lack formal financial services, digital assets offer an alternative for saving, sending money and conducting business. Countries like Nigeria and Ethiopia are witnessing a growing adoption of stablecoins to manage inflation and navigate foreign exchange shortages. At the same time, crypto platforms enable faster and lower-cost payments both domestically and across borders. Decentralized finance is also expanding access to credit and savings tools, decreasing the need for traditional banks. These services are especially relevant in areas underserved by legacy systems. As adoption grows, crypto is playing a larger role in promoting financial inclusion and helping users participate more fully in the global economy. In economies where the value of local currency is rapidly declining, crypto, particularly bitcoin, is increasingly viewed as a hedge against inflation. Unlike fiat money, which central banks can expand, bitcoin has a fixed supply, offering scarcity in contrast to inflationary monetary policy. This has made it attractive in countries facing persistent inflation, where individuals seek to preserve their purchasing power by investing in assets that are less vulnerable to devaluation. Representing real-world assets as digital tokens on a blockchain is opening new pathways for ownership, investment and liquidity. This process, known as tokenization, enables assets like real estate, stocks or commodities to be divided into tradable units that can be transferred efficiently across digital platforms. It lowers barriers to entry by allowing fractional ownership and improves transparency through on-chain recordkeeping. From financial institutions issuing tokenized bonds to platforms enabling the trade of tokenized art or infrastructure, this approach is reshaping how value is stored and transferred. As more assets are integrated into blockchain networks, tokenization is playing an increasingly significant role in modernizing financial systems. Examining Global Crypto Adoption In October 2024, Chainalysis, a leading blockchain analytics firm, released a comprehensive report on global crypto adoption. The findings revealed significant regional differences, influenced by factors that include economic conditions, regulatory frameworks and access to digital infrastructure. In North America, particularly the United States and Canada, adoption is primarily driven by institutional investors. The United States ranks fourth on the Global Crypto Adoption Index, with the majority of its transaction volume coming from transfers over one million dollars. The launch of spot bitcoin exchange-traded products has significantly increased institutional interest and contributed to the growth of the market. In Asia, India, Vietnam and the Philippines lead in grassroots adoption. This region has seen high levels of engagement from retail users who rely on digital assets for remittances, savings and investment. In Sub-Saharan Africa and Latin America, adoption is often linked to economic instability and limited access to traditional banking. Countries like Nigeria and Brazil are turning to stablecoins and decentralized finance platforms to manage inflation and facilitate cross-border payments. These trends reflect the growing role of crypto as a tool for financial access and economic resilience across diverse global markets. The Role Of Large Institutions And Governments In the United States, legislation is in progress. Known as the GENIUS Act and the CLARITY Act, these bills aim to establish a defined regulatory environment for digital assets. These efforts have encouraged financial institutions to develop products to engage more directly with blockchain infrastructure. Some governments have taken a restrictive stance, while others are exploring regulated pathways. In China, crypto trading and mining remain banned, yet interest in bitcoin has persisted as investors seek alternatives to the stock and property markets. Many are using offshore platforms, informal peer-to-peer channels or crypto exchanges in Hong Kong to gain exposure. Barriers To Mass Adoption While interest in crypto continues to rise, key obstacles still stand in the way of broader adoption. Market volatility remains a concern, with sharp price swings deterring risk-averse users and institutions. Security vulnerabilities, including scams, hacks and the loss of private keys, also contribute to hesitation among potential users. Additionally, regulatory uncertainty in many jurisdictions creates confusion regarding compliance, taxation and the legal status of digital assets. The following section explores these and other barriers that must be addressed for crypto to gain broader acceptance across mainstream financial systems and consumer markets. Frequent and dramatic price swings remain one of the most visible challenges facing crypto adoption. Unlike traditional currencies, which are generally stable over short periods, the value of assets like bitcoin or solana can change significantly in a matter of hours. This unpredictability makes it difficult for individuals to use crypto for everyday transactions and discourages businesses from accepting it as a form of payment. While some investors see opportunity in these fluctuations, many users prioritize stability and reliability in their financial tools. Until the market matures and prices become more predictable, volatility will continue to limit the broader use of this technology. Managing crypto securely can be challenging, especially for new users. Unlike traditional financial systems, where banks handle security and fraud prevention, crypto users are often responsible for safeguarding their own wallets and private keys. This increases the risk of loss due to human error, phishing attacks or technical vulnerabilities. Hacks targeting exchanges and decentralized platforms have resulted in financial losses over the years. The absence of consistent security standards across the industry adds another layer of uncertainty. Without more explicit protections and more accessible tools, concerns around safety will remain a barrier to broader adoption. Unclear or inconsistent regulations across jurisdictions continue to limit mass crypto adoption. Without well-defined rules, businesses face challenges launching compliant products, and users remain uncertain about legal protections, tax obligations and the status of digital assets. This lack of clarity hinders innovation and discourages institutional participation, particularly in regions where policies are frequently shifting or remain underdeveloped. As long as regulatory frameworks vary widely across jurisdictions, uncertainty will remain a key obstacle to mainstream adoption. Expert Predictions On Crypto Adoption Outlook Many experts see regulatory clarity as the key to unlocking the next phase of crypto adoption. Paul Grewal, Chief Legal Officer at Coinbase, stated, 'We can get comprehensive legislation and get it done by August,' pointing to cooperation among the House, Senate and White House. Summer Mersinger, CEO of the Blockchain Association and former CFTC commissioner, added, 'The United States urgently needs clear, comprehensive, and carefully designed rules for digital assets,' reinforcing the call for consistent policy frameworks. Others see bitcoin's potential reaching well beyond traditional financial markets. Alex Gladstein of the Human Rights Foundation emphasized that the technology is 'collaborative, decentralized and aligns well with the human rights movement,' highlighting its role in advancing global financial access and individual freedom. Real-Life Examples Of Crypto Adoption Crypto is quickly becoming a tool for practical problem-solving. In June 2025, the U.S. Federal Housing Finance Agency issued a directive instructing Fannie Mae and Freddie Mac to consider crypto as a reserve asset in mortgage risk assessments. This change allows borrowers to include eligible digital assets held on regulated exchanges when applying for conventional home loans. In Africa, Gridless Compute is using bitcoin mining to support rural energy infrastructure. By partnering with local power producers, Gridless runs mining equipment only when there is excess renewable energy. This approach helps monetize otherwise unused electricity, creating additional revenue for remote communities. These examples represent just a fraction of how crypto is being applied today, pointing to a growing list of use cases that continues to expand across industries and regions. Bottom Line From institutional finance to rural energy projects, crypto is finding real traction in 2025. Adoption is being driven by concerns about inflation, efforts to promote financial inclusion and growing interest in tokenized assets. In the United States, new legislation is laying the groundwork for more precise regulation, providing both businesses and consumers with greater confidence to engage with digital assets. While challenges remain, practical use cases are emerging across sectors. Whether it is stablecoins supporting cross-border payments or Bitcoin mining powering remote communities, crypto is evolving from a speculative asset into a functional part of the global economy. Its role is expanding, and the momentum shows no signs of slowing. Frequently Asked Questions (FAQs) What Countries Are Leading In Crypto Adoption? Countries leading in crypto adoption include India, Nigeria, Vietnam, the United States and the Philippines. These nations rank highly due to a mix of grassroots usage, institutional investment and supportive or adaptive regulatory environments. Is Crypto Adoption Still Growing Or Stalling? Crypto adoption continues to grow in 2025, with increased activity across both developed and emerging markets. What Role Does Regulation Play In Crypto Adoption? Clear and consistent rules encourage institutional involvement and broader public use, while regulatory uncertainty can slow innovation and limit access. What Is The Future Of Mass Crypto Adoption? As infrastructure matures and adoption expands across sectors, crypto may become a more integrated part of global financial systems.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Locomotive leasing Market Poised for Growth, Expected to Hit USD 20.14 Billion by 2032
Growth in Cross-Border Freight to Steer Global Market Past USD 20.14 Billion by 2032 at 8% CAGR – Coherent Market Insights According to Coherent Market Insights, Locomotive leasing Market is estimated to be valued at USD 11.75 Bn in 2025 and is expected to reach USD 20.14 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 8% from 2025 to 2032. The global locomotive leasing market is projected to experience steady growth in the coming years. Expanding rail infrastructure in emerging countries is fueling demand for leased locomotives. As nations upgrade existing rail networks and develop new lines, leasing companies are presented with increased opportunities. Moreover, governments aiming to modernize their rail fleets without large upfront costs are increasingly opting for leasing solutions, allowing them to avoid substantial capital expenditures. Request Sample Pages: Global Locomotive Leasing Market Key Takeaways According to Coherent Market Insights (CMI), the global locomotive leasing market size is estimated to increase at a CAGR of 8%, reaching USD 11.75 Bn in 2025 and USD 20.14 Bn in 2025. By lease type, full-service lease segment is expected to account for a prominent 35% of the global locomotive leasing market share in 2025. Asia is poised to exhibit fastest growth during the forecast period, holding a market share of over 33% in 2025. As per CMI's new locomotive market analysis, Europe is set to remain the second-leading market for locomotive leasing services, holding a market share of 30.4% in 2025. North America is projected to hold one-fourth of the global locomotive leasing industry share in 2025. Rising Demand for Cost-Efficient Rail Operations Fueling Market Growth Coherent Market Insights' latest locomotive leasing market research report highlights key factors driving market growth. One such major growth driver is the increasing demand for cost-efficient rail operations. Purchasing new locomotives requires substantial capital. This is where locomotive leasing steps in, allowing rail operators to acquire and deploy locomotives without huge upfront investments. Companies, especially small and medium-sized ones, worldwide prefer leasing as it allows them to access modern and efficient locomotives without the financial burden of ownership. This global shift toward leasing over ownership is expected to boost growth of the locomotive leasing market during the assessment period. Preference for Ownership Restraining Locomotive Leasing Market Growth The prospective locomotive leasing market outlook indicates rapid growth. However, growing preference for ownership may limit market growth to some extent during the forthcoming period. Some rail operators prefer to own locomotives for greater control over operations and long-term cost savings. This growing preference for ownership might slightly limit overall locomotive leasing market demand during the forecast period. Growth in Cross-Border Freight Creating Lucrative Growth Opportunities There is a significant rise in international trade due to globalization and regional trade agreements, creating strong demand for efficient and flexible transportation solutions. This trend is expected to drive growth in locomotive leasing, as freight operators seek scalable and cost-effective ways to meet increasing cross-border logistics needs. Leasing locomotives allows freight operators to rapidly expand their fleets in response to growing demand. It eliminates the need for substantial upfront capital investment required for purchasing new units. Leased locomotives can be easily deployed across borders to adapt to fluctuating trade routes and regulatory environments. This makes them an attractive option for companies engaged in cross-border logistics. Impact of AI on the Locomotive Leasing Market Artificial intelligence (AI) is significantly transforming the locomotive leasing industry. This advanced technology enhances operational efficiency, predictive maintenance, and asset management. AI enables lessors and lessees to optimize fleet utilization as well as reduce downtime and forecast maintenance needs more accurately. This proactive approach not only extends the lifespan of leased locomotives but also minimizes costs associated with unexpected failures. Emerging Locomotive Leasing Market Trends Shift towards green locomotives like electric and hybrid ones is a key growth-shaping trend in the market. Implementation of stringent emission regulations is pushing operators to use eco-friendly locomotives. In response, locomotive leasing companies are expanding their offerings to include more energy-efficient models, especially electric locomotives. Rising demand for rail freight, coupled with the need for efficient cargo transportation, is driving demand for freight locomotives. Locomotive leasing provides rail companies with a cost-effective and flexible option to expand or modernize their fleet in response to increased freight movement. Technological advancements in locomotives are positively impacting the target industry. Many rail operators lack the capital to purchase advanced locomotives equipped with modern technologies like automation and enhanced safety features. Leasing companies help bridge this gap by offering access to the latest technology without operators bearing R&D, ownership, or depreciation costs. Analyst's View 'The global locomotive leasing industry is expected to grow rapidly, owing to rising demand for cost-effective rail transport solutions, expansion of rail freight services, and increasing cross-border trade volumes,' said a senior analyst at CMI. Competitor Insights Top companies in the locomotive leasing market report include: - GATX Corporation - TrinityRail - Beacon Rail Leasing - Progress Rail (A Caterpillar Company) - SMBC Rail Services - VTG Rail Leasing - Mitsui Rail Capital LLC - Touax Rail Ltd. - Railpool - CIT Group Inc. - Mitsui & Co., Ltd. Buy this Complete Business Research Report: Key Developments In August 2024, GATX Corporation officially announced the acquisition of 156 locomotives from Progress Rail. This acquisition is designed to support the company's commercial strategy by offering locomotives for lease. In December 2024, PKP Intercity PKP Intercity officially announced the award of new long-term locomotive leasing contracts to CargoUnit. These deals cover 5 Vectron electric locomotives across two lots. About Us: Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries.
Forbes
5 days ago
- Business
- Forbes
A New Carbon Credit Standard Brings New Hope To The Market
There has been controversy surrounding the forest carbon credit market. Some project developers have been seen as cheating the system by overreporting the amount of carbon sequestered, which allowed them to earn greater revenue from carbon credit sales. We take for granted that nations have to destroy their forests to develop, but carbon credits offer another way. Countries need money to build energy infrastructure, roads and bridges, fund hospitals and universities, and with programs funded by carbon credits, they can develop without destroying their countries. Carbon Credits offer alternative revenues to the government and local communities. This allows a country to develop without destroying its natural resources. Deforestation in Cambodia. Densely canopied forest is destroyed in the pursuit of economic ... More development. This is how carbon credits work: they are coupons that represent some amount of carbon that has been stored in a patch of forest. Corporations can buy these coupons to help them achieve their net-zero commitments. Governments of developing nations can sell carbon credits and earn revenues to develop sustainably. The forest carbon credit market has been heavily criticized, saying that corporations who buy carbon credits are only greenwashing their image. Some criticism has been fair. We acknowledge that there have been enough projects with flawed baselines to justify scrutiny from the press. Some project developers have applied the methodologies in a sloppy way, prompting heavy scrutiny. There have been enough examples of poor integrity in carbon accounting to have delegitimized the wider system in the eyes of many. This led to cynics believing that everyone was overstating how much carbon they actually sequestered. This is unfortunate because pragmatically, carbon credits are our best hope of preserving our remaining forests. The Amazon rainforest being cleared for soybean planting. Mato Grosso state in western Brazil, Oct. ... More 4, 2015 Up until now, there have only been a few accrediting firms in the carbon market. The limited selection of accrediting bureaus has made it such that when a bureau gets criticized, all the associated projects are tainted in the eyes of the carbon credit purchasers. Until now, Verra has maintained a de facto monopoly on the market, but a new firm has been announced and it will be accrediting projects by 2026. As a project developer, I'm very excited. We will have a new standard, Equitable Carbon Standard (ECS) and a new accrediting body, Equitable Earth, which lessens our dependence on Verra and gives more hope to carbon credit buyers. Equitable Earth has stricter requirements for counting carbon, and has a methodology that provides greater empowerment to Indigenous and local people. The new system aims to resolve the lack of trust that the corporate buyers have for project developers. There have been concerns that the amount of carbon being reported did not match the reality on the ground. Separately, there have been complaints that some projects have harmed local people by taking their land away. In the new standard, indigenous people will play a bigger role in project management and benefit sharing. Their elevated position in decision making will hopefully allay some of these anxieties about their wellbeing. Carbon credits are the best, pragmatic way to preserve the forests. Land conversion, clearing forests so that they can be replaced by agriculture, industrial development, or urban expansion, is the biggest driver of deforestation. Deforestation across the Tropical Belt as of 2022. Green shows remaining forests. Carbon Credits ... More offer developing nations a meaningful alternative to the deforest to develop trajectory. Compiled with data from various sources. Global climate commitments include ending deforestation by 2030 and reaching net-zero emissions by 2050. This won't be done by reducing emissions alone. Even with the emerging technologies and strategies that will lower the amount of carbon released into the atmosphere, we still need to absorb and sequester the balance to maintain net-zero emissions. Our forests, and the carbon credits that protect them, offer the most effective way to accomplish this imperative.
Zawya
15-07-2025
- Business
- Zawya
African airlines taxed out of reach for travellers
Carriers in East Africa have sounded the alarm over high taxes imposed by governments on goods and services in aviation, saying the levies are inflating ticket costs and stifling growth in an industry facing numerous challenges. The African Airlines Association (Afraa) says many countries in Africa have raised taxes on aviation in an effort to boost revenues and meet fiscal targets, but at the expense of air travel and the viability of carriers. In a report published last week, the lobby says a passenger departing from an African country pays an average of 3.5 taxes, charges and fees on international departures – about $68 – up from $66 in 2022. Anyone departing from Europe and the Middle East pays an average of 2.53 and 2.69 taxes respectively, valued about $30 and $34.'Aviation in Africa faces huge challenges related to taxes and charges, which affect airlines, passengers and economic growth,' Afraa said in the report.'High taxes, inconsistent policies and reliance on revenues can stifle the development of a competitive and sustainable aviation industry.'The report says many African governments are ignoring the International Civil Aviation Organisation's (ICAO) policies on taxation, imposing exorbitant charges on the sector. In addition to international departure taxes, more African countries have introduced transfer and arrival taxes, further inflating the cost of flying to and through the continent. Regional departuresAs of 2024, some 42 African countries applied transfer taxes, up from 35 in 2022, increasing ticket prices by an average of $34.40. Arrival taxes rose from an average of $14 in 2021 to $34.10 last year. Flights within the continent are not exempt. Since 2022, fees, charges and taxes on regional departures have risen by about $2 to $59.05, up from $57.40. While average taxes in Africa are already above international norms, some countries charge close to $300 in taxes and fees on global and regional departures. Gabon is the most expensive country to fly from, charging $297.70 for international flights and $260 for regional departures. Sierra Leone follows closely, levying $294 for the categories. In East Africa, the Democratic Republic of Congo is the costliest, charging $109.90 for regional and international departures – the ninth most expensive on the continent. On average, East African countries charge $63.32 in taxes on international departures and $52.82 on regional departures, ranking third after West Africa ($109.49 and $96.98) and Central Africa ($106.62 and $85.84). Four countries in the region charge $50 to $100, one charges between $100 and $150, two fall between $30 and $50, and two charge less than $30. Afraa does not specify charges by country except for the 10 most and least expensive. An analysis by the East African Business Council in 2023 also established that countries in the region have hefty taxes on international and regional travel, with some airports being among the most expensive on the continent to depart from. Juba Airport in South Sudan was the most expensive, with taxes amounting to 17 percent of ticket prices for air travel within the East African Community (EAC) and 11 percent within the rest of Africa. Uganda's Entebbe Airport and Burundi's Bujumbura Airport came second with taxes eating up 15 percent of ticket prices, followed by Nairobi's Jomo Kenyatta Airport and Julius Nyerere Airport in Dar es Salaam, at 11 percent, with Kigali Airport in Rwanda being the cheapest at eight percent. Aviation trafficAfraa says the continued rise in these taxes will suppress local demand for air travel and weaken tourism in Africa, which relies on aviation to transport about 56 percent of visitors.'Taxes and fees generally represent more than 55 percent of airlines' most affordable base fares, and over 35 percent of the total ticket price,' the report states.'Given the low purchasing power in Africa, it is urgent to assess the issue of high taxes to stimulate demand and make air transport affordable.'Indeed, air travel seems to be less developed and has less traffic in regions that have more taxes than in those with lower taxation on the industry, evident from the Afraa analysis. Of the 10 countries with the lowest aviation taxes for international and regional departures, four – Morocco, Tunisia, Algeria and Libya – are from northern Africa. All but one country from this region charge less than $50 in such taxes, according to the report. In contrast, only three countries from West and Central Africa have taxes of less than $50, while the majority charge more than $100 in international and regional departure taxes, not to mention arrival and transfer taxes on airline tickets. As most African countries grapple with debt sustainability and scramble for revenue, Afraa says indiscriminate taxation risks strangling industries critical for growth.'To foster greater air connectivity, economic growth and regional integration, it is important for African governments to consider harmonising tax structures, reducing excessive charges and pursuing alternative funding methods for aviation infrastructure,' the report concludes. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arabian Business
14-07-2025
- Business
- Arabian Business
Securing resources as trade continues to become more regional
There's no shortage of ambition when it comes to clean energy. Net-zero targets are everywhere. Capital is flowing into renewables. Technologies are evolving fast. But those ambitions are now coming up against a tough reality: the global trade system that once quietly enabled the clean energy shift is splintering. The old assumption that global supply chains would always deliver what was needed, when it was required, is looking shakier by the day. As the world is more committed than ever to decarbonisation, basic materials needed to get there are suddenly harder to secure. That mismatch is prompting a rethink at every level about how countries and companies go about getting hold of the resources they need. From copper and lithium to natural gas, the playbook is being rewritten. In general, three strategies are emerging. One is the revival of government-to-government deals to lock in supply. Another tries to localise supply chains entirely, which is ambitious, but often impractical. The third, and increasingly the most crucial, leans on the agility of commodity traders to find workarounds in a fractured market. Spotlight on traders Not everything can or should be solved at the state level. That's where commodity traders have become increasingly vital. Long seen as background players, these firms are now operating closer to the centre of the action. What makes them so effective is precisely what they're not: they're not governments, they're not bogged down in bureaucracy, and they're not tied to national agendas. When supply routes seize up or politics interferes, traders often keep the system running. They're evolving fast. Companies like Mercuria and Trafigura are moving beyond deal-making. They're beginning to buy stakes in infrastructure, acquiring refining assets, and in some cases even owning upstream production. That's a big shift: from middlemen to fully integrated players. One firm illustrating that shift is BGN International, the Geneva-based trading arm of Bayegan Group. As a major private commodity trader and one of the largest buyer of LPG from the US, BGN has traditionally played a crucial behind-the-scenes role, moving over 50 million tonnes of commodities a year. Today, they are stepping closer to the physical assets that underpin trade. Its recent acquisition of two mid-sized LPG tankers gives it a stronger foothold in gas shipping. In a world where flexibility and access are everything, it's a strategic move: part logistics play, part supply chain insurance. It shows how today's traders have evolved to be more than intermediaries; they're becoming builders of the very systems that keep energy moving. Africa, too, is a space to watch. With the African Export-Import Bank backing a US$3 billion facility to encourage intra-African fuel trade, there's real momentum behind localising energy flows. The idea is to connect African refineries with African buyers, cutting reliance on imports from faraway markets. Traders like BGN are positioned to help make that happen by handling credit, navigating logistics, and stitching together deals where others might struggle. In a world where supply chains are more brittle, that kind of nimbleness is essential. Traders operate with speed and flexibility, offering financial instruments to manage volatility. Their role now extends beyond simple logistics as they help contribute to the stability of the system. By absorbing shocks and facilitating continuity, they serve an important part in market flows even amid geopolitical disruptions. Resources are big business Some economies have decided the best way forward is to leverage the free market and cut large deals. What's often dubbed 'friend-shoring' has been gathering steam. In May, for example, the US began evaluating a commercial lease sale off American Samoa for seabed mining of critical minerals such as nickel and cobalt offered by California-based firm Impossible Metals. This move opens the door to private sector participation while encouraging investment in deep‑sea mining technology and permitting frameworks. This type of partnership may reflect a broader shift in which mining companies play a growing role in supporting both regional development and global supply chains. In the Middle East, the approach has taken a slightly different form. Armed with capital from fossil fuel exports, Gulf energy companies are now placing upstream bets, investing directly in foreign mines. Considerable capital has already been deployed, for example, billions have been committed to ventures in copper, nickel, and lithium. It's a clear move by regional energy companies to future-proof: if electricity is the new oil, then metals are the new crude. As the Gulf continues to sketch out plans for an integrated gas grid, which would allow for natural gas to move more freely in the region, it's not only emissions targets that are being met. For companies still dependent on oil revenues, gas offers a path toward diversification without ignoring hydrocarbons altogether. In all these cases, properly thought-out resource agreements provide long-term strategic protection for both energy companies and the economies they serve. The cost of self-reliance Meanwhile, a third approach, full-scale localisation, is getting political traction, especially in developed economies. The concept is simple enough: extract your resources, refine them domestically, and manufacture your clean energy technologies. It promises control and security, but the practical hurdles are steep. Start with geology. The US may have lithium, but not in the volumes seen in Chile or Australia. Europe has almost no rare earths to speak of. Yet even when deposits exist, permitting, building, and launching a mine can take more than a decade. That's far too slow to align with 2030 emissions targets. Then there's the cost. Labour, regulation, and environmental standards in richer countries mean domestic refining and manufacturing can be significantly more expensive. A battery metal processed in the US, for instance, might cost 30 to 50 per cent more than one from China. That kind of margin quickly eats into competitiveness—unless companies (whether processing or assembly plants, or OEM's) are willing to backstop the difference. Other problems arise, too. Betting heavily on one material or process risks obsolescence if technologies evolve. Local opposition can block projects. And building entire parallel supply chains introduces the danger of wasteful duplication. That's why some analysts now advocate for something more flexible: what's sometimes called 'regional anchoring.' Rather than trying to do everything in-house, the idea is to focus on specific strengths, processing or assembly, while still importing other inputs. Done right, this middle path offers more resilience than total reliance on imports, but without the massive price tag of full autonomy. A system under pressure – but still moving What's clear is that the road to a greener energy system won't be smooth, and trade, or the lack of it, is becoming a major obstacle. The supply chains that support decarbonisation are increasingly shaped by politics as much as by market forces. Countries are responding in different ways: through diplomacy, through investment at home, and perhaps most effectively through partnerships with traders. All of these responses will remain in play. Bilateral deals will continue. Some will reshape whole sectors. Others will fizzle. But it's the traders who are increasingly critical in keeping the system coherent. They hedge against volatility, re-route cargoes under pressure, and knit together fractured supply chains in ways no government can. While full-on localisation isn't likely to become the norm, strategic investments in key parts of the chain can still help reduce vulnerability. The real trick is finding the right balance. Lean too hard on bilateral deals and risk fragmenting the global system. Rely too much on traders, and questions arise about oversight. Go all-in on local production, and you might sacrifice speed for sovereignty. But for now, the system hasn't broken, that's largely thanks to the quiet consistency of commodity traders playing their own trade game across borders, through crises, and despite the noise.
