The world is adopting various means to enhance efforts in combating global warming, from setting record numbers in solar panel installations to increasing sales of electric cars. Despite these efforts, unexpected challenges may hinder the transition to clean energy this year.
Increasing demand for energy
With the increasing needs of data centers to support artificial intelligence technologies, a rise in energy demand is expected, prompting utility companies to reconsider their plans to phase out fossil fuel power plants. This coincides with the resurgence of nuclear energy as a primary energy source.
Political influence on green transition
The elected President of the United States, Donald Trump, is preparing to make decisions that oppose environmental efforts, including ending support for offshore wind projects and withdrawing from the Paris Climate Agreement. These policies could hinder the global commitment to reducing warming to less than 1.5 degrees Celsius compared to pre-industrial levels.
Worrying indicators for 2024
Scientists indicate that 2024 was the hottest year on record, with global temperatures surpassing the 1.5-degree Celsius threshold.
The main trends for 2025:
Solar energy growth slowdown
Despite the significant growth of 35% in 2024, the increase in solar panel installations is expected to slow down to 11% in 2025 due to challenges related to integrating excess electricity into power grids.
Continued reliance on coal
Despite its decline in Western countries, the International Energy Agency expects coal use to remain high until 2027 due to increased demand in China and India.
Sustainable investments
Environmental, social, and governance (ESG) standards continue to have an impact on companies and markets despite the political debate surrounding them, as evidenced by the global investment of over $3 trillion in energy transition since 2021.
Carbon credit flexibility
The Science-Based Targets Initiative (SBTi) is moving toward granting companies greater flexibility in using carbon credits to cover emissions, which could reshape global carbon markets.
Electric cars
China leads the global electric vehicle market, accounting for 65% of sales by 2025, which affects global oil demand and threatens OPEC's forecasts.
The return of nuclear energy
Nuclear energy is witnessing increased interest in Europe and the United States as a reliable source of low-carbon energy. The development of new, smaller, and more efficient reactors is also expected.
Future challenges:
Brazil’s stumbled summit
With the hosting of the "COP 30" summit in the city of Belém in the Amazon, the summit faces logistical challenges that could impact its success while negotiations continue on climate financing and emission reduction targets.
Partial plastic treaty
Despite the global effort to reach a binding treaty to reduce plastic, some oil-producing countries like Russia and Saudi Arabia are obstructing these efforts. In contrast, other countries are taking individual steps to reduce plastic consumption.
Mining in the ocean
Mining companies are preparing to exploit mineral resources in the oceans despite environmental warnings, with new experiments starting in the Pacific and Japan.
Anti-consumption movement
The desire to reduce debt and contribute to environmental protection is driving a shift in the world towards reducing consumption.
Free chemicals clothes
The states of California and New York have begun banning the sale of clothing containing saturated chemicals like PFAS, prompting global companies to develop eco-friendly products.
In conclusion, it is expected that climate, political, and economic transformations will continue to shape the world's path towards a sustainable future, amidst challenges and opportunities that require innovative solutions and shared global strategies
