Greenhouse gas emissions continued to rise in 2025, prompting concerns about the global fight against climate change. Despite inadequate national pledges to reduce these emissions, significant progress was achieved in several key areas. Notably, global investment in the clean energy sector reached a record high of $2.2 trillion, according to the Energy & Climate Intelligence Unit (ECIU), a London-based nonprofit organization.
Gareth Redmond-King, the international lead at ECIU, acknowledged the challenges ahead, stating, “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.” This sentiment underlines a year marked by milestones in renewable energy, technology, and climate policy.
Record Investments in Clean Energy
Investment in clean technologies far surpassed funding for fossil fuel projects in 2025. The ECIU reported that for every $1 invested in fossil fuels, $2 went towards clean power initiatives. Among the largest polluters—China, the European Union, the United States, and India—the ratio was even more pronounced at $2.60 for every dollar spent on fossil fuels.
In the first half of 2025, investments in renewable energy soared to $386 billion, a 10% increase compared to the same period in 2024, according to BloombergNEF. Solar and wind energy sources managed to meet all new electricity demand during the first three quarters of 2025, indicating a robust growth trend. The UK-based think tank Ember forecasts an 11% increase in global renewable capacity this year, following nearly 30% growth over the past three years.
China emerged as a leader in renewable energy, contributing approximately 66% of new solar capacity and 69% of new wind capacity globally in 2025.
Technological Advancements and Policy Changes
Artificial intelligence (AI) played a significant role in advancing clean technology. The growing energy demands of AI have revitalized investments in green technologies, with funding in this sector surpassing the total for 2024 within just nine months. Despite setbacks in U.S. climate policies, clean energy stocks have surged, with the S&P index tracking clean energy rising by about 50% in 2025.
Battery prices, crucial for the electrification of various sectors, fell to a record $108 per kilowatt-hour in 2025, a decline attributed to improvements in manufacturing and production efficiencies. The U.S. Energy Information Administration estimated that 18.2 gigawatts of new storage capacity came online this year, representing a substantial 77% increase from the previous year.
Internationally, significant agreements were reached, including the ratification of the High Seas Treaty, which will take effect in January 2026. This treaty aims to protect 60% of the world’s oceans, establishing regulations for international waters for the first time.
In addition, the International Court of Justice issued a landmark advisory opinion stating that countries could violate international law by failing to pursue policies that align with keeping global warming below 1.5 degrees Celsius, a target established in the Paris Agreement in 2015.
As nations grapple with the immediate impacts of climate change, funding for adaptation strategies has also gained momentum. The Bill and Melinda Gates Foundation announced a commitment of $1.4 billion over four years to support innovations aimed at enhancing the resilience of farmers in Africa and Asia. Furthermore, the recent UN climate summit concluded with a commitment to triple adaptation finance to $120 billion annually by 2035.
The devastating effects of Hurricane Melissa, which caused significant loss of life and economic damage in Jamaica, highlighted the importance of catastrophe bonds in mitigating climate risks. This year marked a successful payout of Jamaica’s $150 million catastrophe bond, demonstrating the efficacy of such financial tools in disaster preparedness.
North Carolina has expanded its use of catastrophe bonds, aiming to incentivize adaptation through a new bond that encourages the installation of wind-resistant roofs. This innovative approach attracted nearly $600 million in investor interest, showcasing a growing market for climate resilience financing.
In summary, while the increase in greenhouse gas emissions presents a daunting challenge, 2025 has also been a year of significant advancements in renewable energy investment, technological innovation, and international climate policy. The global community continues to navigate the complexities of climate change, demonstrating both a commitment to progress and a recognition of the urgent need for effective solutions.
