2025 A Defining Year for Private Sector Climate Action

2024 was both the warmest year on record and the year of democratic upheaval with more than half a billion ballots cast in elections across 73 countries. In the 12 western countries that held elections every incumbent lost vote share. Centrists were frequently the losers as voters threw their lot behind radical parties on the right and left. This included tactical push back on policies designed to accelerate the low carbon energy transition. Many right wing politicians favour repealing and delaying policies designed to fund low carbon energy projects, carbon taxes and supporting higher strike prices in carbon allowances. Under Sunak’s government in the UK carbon allowance prices halved and vehicle deadlines shifted. President Trump now faces some difficult choices on repealing incentives under Biden’s Inflation Reduction Act which benefits many of his supporters. The Financial Times call the movement “greenlash”, the political push back on decarbonisation where green political capital is under pressure.