Last week, the climate and energy team at The Financial Times hosted a webinar on their outlook for global climate action in 2025 featuring Emiliya Mychasuk, Climate Editor; Simon Mundy, Moral Money Editor; Pilita Clark, Associate Editor and Attracta Mooney, Climate Correspondent.
A clear message emerged: while progress is undeniable, political headwinds, market shifts and practical challenges are reshaping the sustainable finance and net zero landscape.
Here are five key trends to monitor – and act on – this year.
The return of a climate-sceptic administration in the White House under Donald Trump is dampening investment confidence in green industries, particularly if the Inflation Reduction Act (IRA) begins to be unpicked. Yet, as the FT reporters noted, global action won’t grind to a halt – economic benefits in Republican states may temper a full dismantlement.
Meanwhile, in Europe, far-right populist parties are also flexing their muscles, with Germany’s election results showing support for more anti-climate policies.
Communications leaders will need to navigate this volatility, framing climate action as a pragmatic necessity to avoid entering, at times, a politically toxic debate. Avoiding cliff-edge rhetoric and focusing on resilience is one way of doing so.
The energy sector is at a clear crossroads. Oil and gas giants are scaling back emissions targets, with investor concerns raised last week that BP will be the latest firm to water down climate commitments and refocus on oil and gas production.
High energy prices are keeping fossil fuels profitable, slowing the shift to renewables. At the same time, the debate rages over whether these legacy players or pure-play renewable firms should lead the transition.
Expect to see a fierce backlash, especially from civil society groups, as oil and gas leaders put the blame on profitability pressures and call for more government subsidies and mandates as critical drivers of change.
Last year clean energy investment hit a record $2 trillion, with 40% flowing into China – an area the webinar flagged as critical to watch. Yet, this falls short of the $5 trillion needed annually to meet Paris Agreement targets.
Renewable energy costs are dropping, making it an increasingly attractive bet for long-term investors, like pension funds, even if political and corporate timelines remain short-term.
China’s dominance is forcing Western governments to step up and build their own supply chains, particularly to ensure a supply of critical raw materials: essential components in green technologies, like battery storage and solar panels. Communications leaders will have to navigate an increasingly geopolitical dynamic when it comes to articulating supply chain stories and investment decisions.
The FT team pointed to 2021 as the high-water mark for ESG enthusiasm. Since then, the focus has shifted to execution and, for many, it has proven tricky. Asset owners with long-term horizons remain committed, but translating capital into tangible outcomes is increasingly viewed as a slog.
For communicators, this is an opportunity to pivot from aspirational pledges to practical storytelling. Highlighting wins but, at the same time, acknowledging there are difficult hurdles to overcome.
AI’s energy demands are under scrutiny, but efficiency gains – like those seen with DeepSeek – are promising. Venture capital remains U.S.-heavy in climate tech, though Europe has plenty of room to compete over the course of 2025.
The webinar underscored AI’s dual role as a positive tool for enabling net zero, such as through grid optimisation, yet it is a power-hungry energy source that will need to be managed. So, too, should communications about corporate investments into AI, which should be careful of failing to acknowledge the technology’s vast environmental footprint.
Looking ahead: practical steps in uncertain times
The webinar painted a nuanced picture: the climate crisis is intensifying, with record temperatures and extreme weather events as stark reminders of the stakes at play. Yet the path forward hinges on execution.
For communications leaders, 2025 requires a high degree of agility by crafting messages that resonate with long-term investors, while addressing the short-term political and market fluxes. As COP30 looms and nations face a delayed September deadline to update climate targets, the narrative must stay grounded. Progress is possible, but it is not a sprint.
In a year defined by execution over ambition, those working in the sustainable finance and net zero arena should be strategic in spotlighting progress, while navigating the ever-changing market and political realities.
This article was written by Ben Carr, Associate Director, with support from Tom Smith, Senior Account Executive.
