Climate Policy and Green Energy Initiatives Around the World
The U.S. has stepped back while others push ahead. A guide to where climate policy and the clean energy transition stand today.
Climate policy is moving in different directions around the world. While some governments are scaling back commitments, clean energy investment continues to grow, driven increasingly by cost as well as climate goals.
The United States changes course
In January 2025, the U.S. began withdrawing from the Paris Agreement for the second time. Later that year, Congress passed legislation phasing out many of the clean energy tax credits introduced by the 2022 Inflation Reduction Act, including the federal credit for new electric vehicles.
Europe and the Nordics hold firm
The EU remains committed to climate neutrality by 2050. Sweden, with an electricity system dominated by hydropower and nuclear, has one of the lowest-carbon power grids in Europe and is home to major industrial decarbonisation projects, including efforts to produce fossil-free steel.
Asia-Pacific
- Australia has legislated a target of a 43% cut in emissions below 2005 levels by 2030 and is expanding renewable generation rapidly.
- Singapore, with limited land for renewables, has introduced a carbon tax and is exploring low-carbon electricity imports from the region.
The economics are shifting
Solar and wind are now among the cheapest sources of new electricity in many markets. That means the energy transition is increasingly driven by economics, even where political support wavers.
