Page 27 - Iran OUTLOOK 2025

economic impact potential of renewable energy development.
However, the sector's growth remained constrained by implementation challenges. Despite legislative requirements mandating the Energy Minister to increase the share of renewables and clean power plants to at least 5% of total capacity by the end of 2021, this target had not been fully achieved by 2024. This shortfall highlighted the persistent gap between policy ambitions and practical implementation in Iran's renewable energy sector.
The country sought to address these challenges through international cooperation. A significant step in this direction came in September 2024, when SATBA organised a collaborative meeting with UN-Iran and IRENA. This gathering focused on three critical aspects: enhancing renewables' role in Iran's energy mix, fostering international cooperation, and identifying financing and technical support opportunities. This multi-stakeholder approach reflected recognition of the need for both international expertise and external resources to achieve Iran's renewable energy objectives.
9.0 Trump and Succession • 9.1 Trump impact
The prospect of Donald Trump returning to the US presidency in 2025 presents significant challenges for Iran's economic trajectory under President Pezeshkian's administration. To understand the implications, we must consider both the historical context and current dynamics shaping Iran's options.
During Trump's previous administration, the withdrawal from the JCPOA and reimposition of sanctions had profound effects on Iran's economy. These measures severely restricted Iran's ability to export oil, conduct international financial transactions, and attract foreign investment. The resulting economic isolation contributed to sharp currency depreciation, rising inflation, and reduced industrial output.
President Pezeshkian's moderate pragmatic approach represents a potential opening for diplomatic engagement. His willingness to consider reviving the JCPOA or negotiating a similar framework acknowledges the substantial economic benefits such an agreement could bring – from unfreezing billions in assets to stabilising the Iranian rial and reopening access to global markets.
However, several factors complicate the prospects for successful negotiations. A Trump administration would likely demand concessions
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