Global Defense Spending Hits Record $2.72T Amid Geopolitical Shifts

Global military expenditures reached a record $2.72 trillion in 2024, marking the eleventh consecutive year of growth. This significant increase signals the most rapid transformation in the defense landscape in decades, driven by shifting geopolitical dynamics, rising global tensions, and accelerating technological development. Consequently, nations are fundamentally reassessing their security and resilience strategies. Europe is rearming at a swift pace in response to the war in Ukraine. The number of NATO countries projected to meet the defense spending target of 2% of GDP is expected to reach 23 in 2025, a substantial increase from just six in 2021. Germany, Poland, and the United Kingdom are at the forefront of this military buildup. Meanwhile, the United States, the world's largest military spender, is prioritizing modernization over legacy systems. Its budget is increasingly directed towards next-generation capabilities and research and development, with a strong emphasis on efficiency and innovation. In a separate development, Preem's Redefine HVO100 has achieved a significant milestone by becoming the first liquid fuel to be awarded the Svanen (Nordic Swan) eco-label. To meet the stringent 2022 criteria, qualifying fuels must demonstrate at least a 75% reduction in greenhouse gas emissions compared to fossil alternatives, utilize sustainable and traceable raw materials, and strictly avoid palm oil. Preem's biofuel, derived from residual products like tall oil, animal fats, and food waste, offers a substantial environmental benefit by reducing greenhouse gas emissions by over 90% compared to traditional diesel. Furthermore, its chemical similarity to conventional diesel enables its use in most diesel engines without requiring any modifications.