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Executive summary │ 2025 considerations
Climate
Ecosystem to recalibrate climate action in 2025
Key climate themes for 2025
In a three part series, we build on our 2025 outlooks for ESG (see here) and sustainability (see here), to further contextualise how the landscape may be shaped through three dimensions - (1) the climate; (2) sectors; and (3) regions. We kick-off with part (1) the climate.
If 2024 was a waiting game for elections, we expect 2025 to be a year of climate action recalibration by the sustainability ecosystem – corporates, investors and policymakers. The context for the recalibration is the reality of a disruptive transition, with many questions – which do not have simple answers – abound.
How can we accelerate climate action and prioritise growth given the current geopolitical, economic and social realities that will dominate in 2025? Is the current strategy to climate change and the energy transition (sub)optimal given a (re)prioritisation of returns on investments/growth and the reality of a disruptive period of transition and change?
In this context, we offer our clients an examination of the key climate themes for 2025 in this thought leadership report:
- Updates to Nationally Determined Contributions (NDC). NDCs to guide if net zero is still achievable?
- COP30. “Turnaround COP” to reinforce pledges on the pace/scale required to avoid climate change?
- Political climate dynamics. Will the dour US mood on climate change incentivise others?
- Transition finance. Will ESG bonds clock the biggest year of issuances on record in 2025?
- Climate disclosures. Heterogeneity across regions on diversification and dictation.
- Transition plans. Focus to shift from targets to granular accountability.
- Carbon pricing and offset markets. Market integrity surrounding Article 6.4 still vague
- Climate litigation. Human rights and misinformation to continue proliferating.
- Adaptation. Rising temperatures and physical impacts to push adaptation up the agenda.
