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Executive summary │ 2025 considerations
Regions
Regional sustainability dynamics remain heterogenous with diverse trajectories
Key regional ESG themes in 2025
In the final part of our three part series into the key considerations of 2025 from an ESG lens, we build on part (1) climate (see here), and part (2) sectors (see here) to delver into part (3) regions.
The decibels of debate surrounding ESG is intensifying across the globe. Not only is Trump 2.0 ushering setbacks to climate cooperation and net zero goals, but the geopolitical escalation of US-China strategic competition centred on critical minerals and clean energy technologies, makes for a complicated 2025.
The gap between developed and emerging markets’ resources to meet climate targets continues to widen – the COP29 agreement to support emerging markets with USD300bn p.a. by 2035 is ambiguous, at best.
A key question for regional dynamics is whether the anti-ESG US narrative spreads across the globe, especially across emerging markets, which account for ~70% of global carbon emissions.
In this context, we offer our clients an examination of the regional ESG themes for 2025 in this thought leadership report:
- Americas. Notwithstanding higher investment quantums, growth is slowing on policy uncertainty.
- USA. Investment plateaus but the scale/scope of the anti-ESG pushback remains top of mind.
- EMEA. Lower investments led by renewables but maturing power grids prudently being addressed.
- UK. Stronger electrified transport and growth in heat pumps offset by sharp offshore wind contraction.
- Middle East. Power sector holds distinct opportunity for increasing clean technology investments.
- APAC. Half of global transition investments, with the Just Energy Transition Partnership (JETP) in focus.
- Japan. Renewables investments reached a 15 year low in 2024, yet hope remains on METI’s new plan.
- China. Boom continues, with electrified transport accounting for ~20% of global transition investments.
- India. Sustained optimism across transition verticals with green hydrogen production to play a key role.
