Climate Policy in 2025 – Progress, Gaps, and the Road Ahead

As global temperatures continue to rise— 2025 has become a pivotal year for climate policy. Governments and institutions are scrambling to align their strategies with the Paris Agreement’s 1.5°C goal, but progress remains uneven. Here’s a breakdown of key developments and challenges shaping climate action this year:

1. Shipping Industry’s Net-Zero Framework

In April 2025, the International Maritime Organization (IMO) approved groundbreaking regulations to decarbonize global shipping, responsible for 3% of global emissions. The new framework mandates:

• Fuel Standards: Ships over 5,000 gross tonnage must adopt cleaner fuels (e.g., green ammonia, hydrogen) starting in 2027.
• Carbon Pricing: A global levy on shipping emissions, with funds directed to climate-vulnerable nations.

This marks the first legally binding net-zero framework for an entire industry sector. While applauded, critics argue the 2050 net-zero target is too lenient for an industry projected to grow by 40% by 2050.[1]

2. Climate Change Performance Index 2025: A Reality Check

The latest Climate Change Performance Index (CCPI), released in November 2024— reveals a mixed global picture:

• Renewables Surge: 61 of 64 countries increased renewable energy shares with solar and wind dominating new installations.
• Fossil Fuel Reliance Persists: Oil and gas production rose in 29 countries, undermining emission cuts.

Top Performers:

• Denmark and Sweden lead in renewables and policy.
• India ranks 7th, praised for its 500 GW non-fossil energy target but criticized for coal expansion.

Laggards:

• The U.S. and China, despite renewable growth, remain top emitters due to fossil fuel dependencies.[2]

3. Emissions Reality: 2025 Levels to Exceed 1990 by 54%

A October 2024 UNFCCC report warns that global emissions in 2025 will be 54% higher than 1990 levels, even if current climate pledges are met. Key findings:

• 2030 Projections: Emissions could drop only 2.8% below 2025 levels, far short of the 43% reduction needed to limit warming to 1.5°C.
• Implementation Gaps: Fewer than half of countries have integrated climate targets into national laws, risking missed deadlines.[3]

4. Policy Innovations and Challenges

• Carbon Tariffs: The EU’s Carbon Border Adjustment Mechanism (CBAM) is pushing industries like steel and cement to adopt greener practices.
• AI in Climate Modeling: Governments are using machine learning to predict extreme weather and optimize renewable grids.
• Public Resistance: Communities oppose CCS projects and nuclear plants over safety concerns, slowing deployment.

The Path Forward:

• Strengthen NDCs: Countries must submit more ambitious 2025 climate plans ahead of COP30.
• Phase-Out Subsidies: Redirect $7 trillion in annual fossil fuel subsidies to renewables and grid upgrades.
• Equity Focus: Ensure climate finance reaches Global South nations bearing the brunt of climate impacts.

[1] https://www.imo.org/en/MediaCentre/PressBriefings/pages/IMO-approves-netzero-regulations.aspx

[2] https://newclimate.org/resources/publications/climate-change-performance-index-2025

[3] https://www.downtoearth.org.in/climate-change/2025-emissions-set-to-surpass-1990-levels-by-over-50-despite-current-climate-pledges-unfccc-warns