However, the reality is that a major new fault line is emerging in geopolitics: while the US is retreating from climate leadership, other major powers are stepping up, most notably, China, which may have reached peak CO2 emissions in 2024 and continues to lead the clean energy race.5 Meanwhile, recent election victories in Australia and Canada have returned leaders to office for whom climate action remains a priority, reflecting the position of most governments across the EU and UK.
In the private sector too, our own experience working with hundreds of companies around the world suggests that most major corporates remain committed to their Net Zero commitments, as they see it as key to managing risks and capturing the business opportunities the transition to a decarbonised economy offers.
They are right to do so: a sober look at the facts reveals that transitioning to Net Zero is perhaps our surest path to economic growth, energy security, and enhanced resilience in an increasingly uncertain world.
#1: The Net Zero transition is driving economic growth and competitiveness on the world stage
The Net Zero economy is thriving. China is leading the cleantech revolution, deploying renewables faster than any other nation.6 Its clean energy industry accounted for a quarter of China’s GDP growth in 2024 and created 7.4 million domestic jobs – almost half of all renewable energy jobs worldwide7,8 - all while significantly lowering the cost of low-carbon technologies globally. Even highly volatile US tariffs on Chinese exports might not stall China’s progress. Just 4% of China’s solar, wind and electric vehicle exports went to the US last year, with a record 43% going to emerging markets.9,10
But China is far from the only country reaping the economic benefits of embracing clean energy. In the UK, the Net Zero economy grew three times faster than the wider economy last year; businesses providing products and services for the Net Zero transition directly generated £28.8 billion in Gross Added Value and attracted an additional £23 billion in investment, surpassing the UK advertising industry.11
In other sectors, reaching Net Zero underpins supply chain resilience and long-term financial stability. Climate change damages assets, disrupts mobility and reduces labour productivity. In 2024 alone, floods, storms, fires, and other weather-related disasters caused $348 billion in losses globally.12 Delaying Net Zero would only increase these costs.
#2 Net Zero goes hand in hand with energy security
Reliance on imported fossil fuels leaves countries exposed to supply disruptions and price shocks, as much of Europe discovered following Russia’s invasion of Ukraine. Reaching Net Zero would alleviate these energy security concerns, because it means decarbonising the power supply, through wind, solar and other renewable energy sources, as well as improving grid flexibility and storage capacity. This would reduce countries’ dependence on fossil fuels and in turn, their exposure to volatile prices. It would also generate energy security independence. While a minority of countries have domestic oil and gas supplies, 92% have the renewable energy potential to meet their energy demand ten times over.13 Secondly, reaching Net Zero will involve electrifying many of the current uses for fossil fuels, including petrol in cars and gas in boilers. As 75% of global fossil fuel imports are used in these end-use sectors, this would have a significant impact on energy security.14
These benefits are already being realised. At the recent International Energy Agency’s Future of Energy Security Summit, delegates representing over 60 governments and 50 energy companies agreed that the rapid deployment of clean technologies is already beginning to protect customers from price shocks.15
#3 The Net Zero transition is evolving but its momentum remains strong
We should also recognise that beyond the US, the policy momentum and corporate support for Net Zero remains strong. In the last month alone, several countries have doubled down on their climate commitments: Brazil launched South America’s first carbon market, China reaffirmed that its next climate targets will cover the whole economy and all greenhouse gases, and major shipping nations struck a landmark agreement on a global carbon tax for the industry.
Meanwhile, corporate support for the decarbonisation of our economies remains high. 97% of business leaders around the world support a swift transition from fossil-based to renewable electricity.16 While some, especially those exposed to the US market, are opting to reframe or rebrand their climate efforts, many continue to shift supply chains, green their operations and invest in sustainable innovation.
Achieving Net Zero will not be easy – many barriers and challenges remain to be overcome and continued influence of fossil fuels on electricity prices means the economic benefits of cheap renewables have yet to flow through to bill payers in many instances. However, if we get it right, Net Zero will help deliver against the priorities that business leaders and policymakers are grappling with in 2025.
The path to Net Zero may be evolving slightly differently than expected. New alliances will emerge to sidestep the US federal government, new supply chains will evolve in response to trade barriers, and corporate communications may focus on supply chain resilience rather than decarbonisation, but the world is not turning away from climate ambition. It is redefining what climate leadership looks like.
Contributors: Thank you to Chloe St George, Communications and Research Executive and Rosie Dickson, Communications and Content Manager at the Carbon Trust for contributing research and insights to this piece.
1 Climate Backtracker | Sabin Center for Climate Change Law
3 Foreign Aid Is Shrinking—What Happens Next?
4 Europe's competitiveness push and what it means for climate action - E3G
5 Analysis: Clean energy just put China’s CO2 emissions into reverse for first time - Carbon Brief
7 Analysis: Clean energy contributed a record 10% of China’s GDP in 2024 - Carbon Brief
8 Renewable energy and jobs: Annual review 2024
9 Why China’s clean energy need not fear US tariffs | Dialogue Earth
10 China’s clean tech exports to emerging markets surged in 2024, data shows
11 Why the net-zero economy is key to UK growth | ICAEW
12 Climate and Catastrophe Insight
13,14 Ember
15 Future of Energy Security (.pdf)
16 97% of business leaders back the renewables transition - We Mean Business Coalition
