The energy transition has become a central arena of economic competition, industrial strategy and geopolitics. With emerging economies driving around 80% of global electricity demand growth, countries outside the traditional superpowers will increasingly shape the clean energy economy.
This policy brief by SEFiA and the Foreign Policy Community of Indonesia (FPCI) draws on the Middle Powers Dialogue, which Chatham House hosted during London Climate Action Week 2026. The dialogue brought together participants from Australia, Brazil, Indonesia, Mexico, South Africa, South Korea and Türkiye.
The brief’s key messages are as follows:
- Middle powers hold critical minerals, renewable resources, manufacturing capacity and diplomatic weight, but these assets remain fragmented.
- Through joint value chains, they can move beyond being raw material suppliers.
- By coordinating on climate finance, they can help lower costs of capital that are two to three times higher than in advanced economies.
- They can shape the COP31 electrification pledge into an actionable and equitable standard.
- Instead of creating new institutions, they can make better use of existing platforms such as the G20, MIKTA and COP.
