The 2050 carbon‐neutral vision spawns a novel energy structure revolution, and the construction of the future energy structure is based on equipment innovation. Insulating material, as the core of electrical power equipment and electrified transportation asset, faces unprecedented challenges and opportunities. The goal of carbon neutral and the urgent need for innovation in electric power equipment and electrification assets are first discussed. The engineering challenges constrained by the insulation system in future electric power equipment/devices and electrified transportation assets are investigated. Insulating materials, including intelligent insulating material, high thermal conductivity insulating material, high energy storage density insulating material, extreme environment resistant insulating material, and environmental‐friendly insulating material, are categorised with their scientific issues, opportunities and challenges under the goal of carbon neutrality being discussed. In the context of carbon neutrality, not only improves the understanding of the insulation problems from a macro level, that is, electrical power equipment and electrified transportation asset, but also offers opportunities, remaining issues and challenges from the insulating material level. It is hoped that this paper envisions the challenges regarding design and reliability of insulations in electrical equipment and electric vehicles in the context of policies towards carbon neutrality rules. The authors also hope that this paper can be helpful in future development and research of novel insulating materials, which promote the realisation of the carbon‐neutral vision.