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Climate Progress in 2025: Despite Rising Emissions, Momentum Builds
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Despite continued increases in greenhouse gas emissions, 2025 saw significant advancements in clean energy investment, declining battery costs, and a strengthening legal framework for climate action. This article synthesizes reporting from December 2025, providing a comprehensive overview of the year’s key developments.
greenhouse Gas Emissions and Pledges
Global greenhouse gas emissions continued to rise in 2025, a concerning trend highlighted by Bloomberg. Despite this, the rate of decarbonization is faster than anticipated a decade ago. However, current governmental pledges to reduce emissions remain insufficient to prevent catastrophic climate change, according to the same reporting. The Los Angeles Times echoes this sentiment, noting that while setbacks exist, positive developments emerged throughout the year.
Investment in clean Energy Surges
Despite the ongoing emissions challenge, investment in clean energy experienced a notable upswing in 2025. Funding for data centers powered by clean energy sources has already exceeded all of 2024, marking the sector’s first annual increase since the 2022 peak. The S&P’s clean energy index rose by approximately 50% in 2025, substantially outperforming other stock indexes and even gold. This surge in enthusiasm has also spurred increased capital investment in upgrading and developing the power grid, a critical component of the global energy transition.
Declining Battery Costs
A key driver of the energy transition is the decreasing cost of battery technology. In 2025, the price per kilowatt-hour of battery capacity fell by 8% to a record low of $108, according to BloombergNEF. Further declines are projected, with an expected 3% decrease in 2026.This cost reduction is crucial for wider adoption of renewable energy sources and electric vehicles.
International Legal Framework Strengthens
The International Court of Justice (ICJ) issued a landmark ruling in 2025,determining that countries risk violating international law if they fail to actively work towards limiting global warming to the 1.5°C threshold established in the 2015 Paris Agreement. This decision reinforces the legal obligations of nations to address climate change and could lead to increased accountability.
