It’s not often we have good news about the climate crisis but new data from China suggests 2025 was their first full year to show a decline in emissions. The reported drop is estimated to be around 0.3%. In the final quarter of 2025, their emissions fell 1% year-on-year.
This is positive, because while 0.3% may not sound much, considering China is the largest industrial power and largest emitter of carbon dioxide, reductions are significant; especially now emissions have been flat or falling for nearly two years, suggesting they may have reached a turning point. Their national investment in solar and wind is helping turn the tide.
Closer to our shores, there are also positive signs, a consortium of European nations has agreed to collaborate to create the largest Offshore wind farm which will have cross connects to multiple countries ensuring that the energy capacity can be fully utilised. Also, the UK has approved 157 new solar farms across the country as the drive for more renewables continues. Building future renewable energy capacity is key to the transition to net zero.
While some politicians deny climate change and seek to create noise to have people look the other way, the practical reality is that the worlds largest economy and the vast majority of the world’s largest companies are taking positive action to reduce their emissions.
What these politicians don’t mention is that the rules of most of the major stock exchanges expect positive climate action and appropriate risk management to reduce emissions and investor risk. Therefore, global companies are already implementing strategies to make positive change. For example, the largest global technology companies are compelling their supply chains to decarbonise and move to renewable energies by 2030. One of our clients with a global presence has recently succeeded in reducing emissions intensity by over 20% over 5 years, while continuing to grow their business. Since the Paris Agreement in 2015, climate risk has been a corporate priority. Despite strategies agreed since taking time to implement and deliver, the tide is turning and results are coming through, as is evident in China.
The next challenge is closer to home. With the UK struggling with extreme levels of rain, snow and flooding linked to climate change, we need businesses of all size across the UK to implement some changes to reduce energy consumption and their emissions, this would make a positive difference.
For any business the starting point is understanding where their emissions are now and then looking at the benefits changes can bring. If all reduced by 1% year on year, like China, it would move us in the right direction and momentum would build.
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