Despite ongoing challenges in the fight against climate change, 2025 saw significant advancements in clean energy and climate resilience. While greenhouse gas emissions continued to rise, global investment in clean energy reached a record high of $2.2 trillion, according to research by the Energy & Climate Intelligence Unit (ECIU). This marks a pivotal moment in the transition toward a sustainable future.
Gareth Redmond-King, international lead at the ECIU, remarked, “Is this enough to keep us safe? No it clearly isn’t. Is it remarkable progress compared to where we were headed? Clearly it is.” The year also witnessed unprecedented growth in renewable energy capacity, with advancements in battery technology and increased protection for the high seas.
Clean Energy Investment Surges
Investment in clean technology outpaced funding for fossil fuel projects, with $2 invested in clean power for every $1 funding fossil fuel initiatives. For the largest polluters—China, the European Union, the United States, and India—this ratio was even more favorable at $2.60 for clean energy. The first half of 2025 saw a 10% increase in funds directed toward renewable energy, totaling $386 billion.
According to BloombergNEF, this growth enabled solar and wind energy to meet all new electricity demand globally in the first three quarters of the year. The expected increase in renewable capacity is projected to reach an 11% rise from 2024, with nearly 30% growth over the last three years. China led this surge, contributing 66% of new solar capacity and 69% of new wind energy worldwide.
Technological Innovations and Policy Developments
Artificial intelligence (AI) played a crucial role in enhancing climate research and innovation. The demand for green technology surged, and investments in clean tech surpassed all of 2024’s figures, marking the sector’s first annual increase since the peak in 2022. Despite the rollback of climate policies under the previous U.S. administration, the clean energy sector saw a 50% increase in performance, outperforming other stock indexes.
In terms of battery technology, prices per kilowatt-hour fell by 8% to a record $108, driven by improved manufacturing processes and increased production. This decline not only benefits electric vehicle adoption but also enhances utility-scale storage systems, crucial for managing energy from renewable sources.
Internationally, significant strides were made in climate policy. The High Seas Treaty, requiring ratification for its enforcement, is set to come into effect in January 2026. This treaty aims to protect the 60% of oceans beyond national jurisdiction and mandates environmental assessments for activities in international waters.
In addition, the International Court of Justice issued a landmark advisory opinion affirming that countries must work towards keeping global warming below 1.5°C, encouraging NGOs and activists to hold governments accountable.
Adaptation financing also gained traction, with Bill Gates’ foundation committing $1.4 billion over four years to support agricultural resilience in Africa and Asia. The most recent UN climate summit resulted in an agreement to triple adaptation finance to $120 billion annually by 2035.
The devastating impacts of climate change were starkly illustrated by Hurricane Melissa, which claimed lives and caused significant economic damage in Jamaica. This event highlighted the effectiveness of catastrophe bonds in managing climate risks. North Carolina’s innovative approach to such bonds aims to incentivize resilience by providing funds for wind-resistant infrastructure, attracting $600 million in investor interest.
Overall, while challenges remain in reducing emissions, 2025 has proven a year of significant achievements, marked by increasing investments, technological advancements, and a commitment to sustainable policies. These developments signal a growing recognition of the urgent need for climate action and resilience in the face of ongoing environmental threats.
