Published on 13/01/2026
2025 on course to be joint-second warmest year
2025 is set to be the world's second or third warmest on record, potentially surpassed only by 2024's record-breaking heat, the European Union's Copernicus Climate Change Service (C3S) said in December. The data is the latest from C3S following November's COP30 climate summit, where governments failed to agree to substantial new measures to reduce greenhouse gas emissions.
This year will also likely round out the first three-year period in which the average global temperature exceeded 1.5°C above the 1850-1900 pre-industrial period, when humans began burning fossil fuels on an industrial scale, C3S said in a monthly bulletin. "These milestones are not abstract – they reflect the accelerating pace of climate change," said Samantha Burgess, strategic lead for climate at C3S.
Extreme weather continued to hit regions around the globe this year. Typhoon Kalmaegi killed more than 200 people in the Philippines last month. Spain suffered its worst wildfires for three decades because of weather conditions that scientists confirmed were made more likely by climate change. C3S's records go back to 1940, and are cross-checked with global temperature records going back to 1850.
Sources: Reuters, Copernicus
The clean energy boom you missed this year
For the first time in 2025, solar and wind power outpaced coal as the leading source of electricity in the first half of 2025, a promising step towards reducing emissions. Globally solar has become more affordable and accessible, paving the way for many around the world to adopt it. In 2024, 91% of new renewable power projects commissioned were more cost-effective than any new fossil fuel alternatives, according to latest IRENA data, a global intergovernmental agency for energy transformation.
Pakistan stands out as one example of this trend, with 25% of its utility electricity generated from solar as of June, well above the global average. “Solar's appeared on every roof, everywhere. It's on large luxury villas and smaller, poorer residences, it’s on factories and government buildings, hospitals and universities,” says Dave Jones, chief analyst at Ember, a global energy think tank. “There's been a huge burst of solar growth and a large amount of that was funded by individuals able to access cheaper electricity than what they've been able to access from their grid company.” Solar power also became the European Union’s largest source of electricity for the first time in June 2025, while some central European countries including Hungary, Poland, and Slovakia have seen solar generation grow at twice the E.U. average rate since 2019. China has also made major investments in renewable energy both domestically and outside its borders, adding twice as much solar capacity as the rest of the world combined, and the country is likely to reach peak coal generation this year, says Jones, meaning the amount of coal used in the country will begin a downward trend going forward.
Renewable energy is becoming too good to ignore. Around the globe, capacity for renewable power is set to rise by 11% in 2025, according to data from Ember. This puts the global goal to triple renewables by 2030 within reach.
Source: Time
Canada to launch Sustainable Investment taxonomy in 2026
Canada will launch a Sustainable Investment taxonomy in 2026, led by the Canadian Climate Institute. François-Philippe Champagne, Canadian Minister of Finance, says clear standards are needed to define "green" or "transition" investments. The taxonomy will be voluntary and aligned with global frameworks.
The Canadian Climate Institute will work with Business Future Pathways to develop the taxonomy, with a Taxonomy Council consisting of experts and representatives from various sectors. Jonathan Arnold, Director of Sustainable Finance, says the guidelines will provide a credible system for identifying climate-aligned investments.
The taxonomy will identify green and transition investments, enabling companies to issue green bonds and investors to evaluate sustainable products. The first three priority sectors will be determined by 2026, with another three added in 2027. The goal is to mobilize private capital to build a clean economy and meet Canada's 2050 net-zero target.
44% of pension funds invest in "impact investing"
About 44% of pension funds invest in "impact investing" products. They choose investments that are expected to generate, in addition to a financial return, an environmental or social impact, according to a survey by the Swiss Association of Pension Institutions.
The most popular investments are energy infrastructure projects, such as solar, wind, or hydroelectric installations. Other priorities for Swiss pension funds include affordable housing, sustainable living, and microcredits.
Compared to global investments, however, the share of impact investing remains modest: on average, about 4.5% of the total assets of Swiss pension funds are invested in impact investments.
Sources: Vermoegenszentrum.ch, Agefi
Climate change has already taken a toll on Americans’ income
Derek Lemoine, a University of Arizona professor, says climate change has reduced US income by 12%. He notes that measuring its economic impact is crucial for policymaking and business investment. Lemoine's study accounts for climate change's nationwide reach and connections between regional economies.
Lemoine's research used climate models and county-level data to measure income changes with temperature shifts. He found that temperature changes across the country "ripple through prices and trade," affecting income nationwide. This approach assesses routine temperature shifts, not extreme weather events, and provides a consistent way to link climate change to economic activity.
Lemoine believes his framework could be used to regularly publish the economic cost of climate change, informing policy design and business decisions. He hopes to expand the research globally, making the calculation more precise and actionable. Lemoine suggests calculating the economic cost of climate change annually to track changes over time and guide adaptation efforts.
Source: Futurity
Ford to use Renault technology, plants for cheaper European EVs to fend off Chinese rivals
- Company: Ford Motor
- Sector: Automobiles
- Clover ratings: 4/5
Renault will jointly develop small, cheaper electric vehicles for Ford for the European market and will also team up to produce commercial vans to cut costs and fend off rising competition from Chinese rivals, the companies said in December. As part of the Ford-Renault partnership, the first of two planned small EVs - to be produced at a Renault plant in northern France - will reach European car showrooms in 2028. They will be smaller than any Ford plans for the U.S. market and fill a gap in the automaker's lineup, Farley said.
Given the withdrawal of EV support from U.S. President Donald Trump's administration, the No. 2 U.S. automaker faces the dual expense of investing in combustion-engine models and expensive new EV technology. Using Renault's EV platforms with Ford designs should help the U.S. automaker to compete in Europe's electric car market against traditional automakers such as Volkswagen as well as the Chinese. Ford already produces two EV models in Europe on a Volkswagen platform and makes vans with the German automaker. Ford CEO Farley said the Renault partnership will complement its existing one with Volkswagen.
Sources: Reuters, The Wall Street Journal
Microsoft signs long-term clean energy and AI deployment deal in Spain with Iberdrola
- Companies: Microsoft Corp; Iberdrola SA
- Sectors: Technology; Utilities
- Clover rating: 5/5; 5/5
Microsoft and Spanish multinational energy company Iberdrola announced the launch of a new partnership, including the signing of their first renewable energy power purchase agreements (PPAs) in Europe, and initiatives to accelerate the deployment of AI across Iberdrola’s operations.
The new collaboration includes two long-term PPAs in Spain, totalling 150 MW of electricity from Iberdrola’s Iglesias wind farm in Burgos and the El Escudo wind farm in Cantabria. The new agreements add to three PPAs already signed between Microsoft and Avangrid, Iberdrola’s US subsidiary, between 2021 and 2025, covering solar and wind projects in Ohio, California and Washington, bringing the total contracted renewables capacity between the companies to around 500 MW across Europe and the US.
The agreement also includes plans to increase Iberdrola’s use of Microsoft’s Azure cloud computing platform, alongside the deployment of Microsoft Copilot and security and regulatory compliance solutions to strengthen digital capabilities and promote the use of AI across the group. Iberdrola has already migrated critical systems from several business areas to the Azure cloud.
Source: ESG Today
Orsted and Dominion challenge Trump administration's halt on offshore wind projects
- Companies: Orsted; Dominion
- Sectors: Utilities
- Clover ratings: 5/5; 4/5
Dominion Energy and Ørsted are suing the Trump administration over halted offshore wind projects. Dominion's $9 billion project in Virginia is expected to power 660,000 homes. Ørsted's $5 billion project in Rhode Island is 87% complete.
The companies reject the administration's national security justification, citing "unfounded animus" against wind energy. Dominion's lawsuit describes the order as "arbitrary and capricious," causing "serious harm" to the company and customers. Ørsted notes that its project secured all required permits in 2023.
Both companies are seeking to vacate the order and resume construction. As Ørsted stated, "Revolution Wind has spent and committed billions of dollars" after meeting thorough review processes. Dominion and Ørsted's lawsuits follow a pattern of Trump administration moves against renewable energy projects, with a previous order struck down by a federal court.
Eating healthy can be good for your wallet and the planet
According to a new global study, eating healthy can save money and reduce greenhouse gas emissions. Led by Tufts University researchers, the study found that locally available food items meeting basic nutritional needs can have low emissions and costs. William A. Masters, senior author, notes that less expensive options generally cause less emissions.
The study analyzed data on food availability, price, and emissions in each country. Researchers modeled five diets, including the healthiest with lowest emissions and cost. Elena M. Martinez, lead author, says choosing less expensive options can lower a diet's climate footprint. In 2021, a healthy diet with commonly consumed products emitted 2.44 kg of CO₂-equivalent emissions per day, costing $9.96.
In contrast, a diet minimizing climate harms emitted 0.67 kg and cost $6.95. A healthy, low-cost diet emitted 1.65 kg and cost $3.68. Masters notes that while reducing emissions can be costly, choosing less expensive food options can be a guide to sustainability, with exceptions for dairy and rice due to methane emissions. Researchers hope these findings will help consumers and governments prioritize sustainable and affordable food choices.
Source: Futurity