This guide sheds light on where the world is making progress in climate mitigation across five significant sectors - and where action is still needed.
While there is no easy cure for the climate crisis, there are a host of climate solutions that offer varying degrees of hope that the world might return to better health and at least move towards the symbolic threshold of 1.5°C above pre-industrial levels.
This is a guide to navigating the opportunities on the path to remission in the five most significant categories: Energy, the built environment, agriculture and food, transport and finance.
Climate solutions refer to investments in nature and transition technologies that enable reductions in carbon emissions, support the transition to a low-carbon economy in line with the Paris Agreement, or contribute significantly to climate mitigation and adaptation.
Worldwide energy demand rose by 2.2 % in 2024, according to the International Energy Agency. That was lower than GDP growth (3.2 %), but much faster than the average annual increase in energy demand of 1.3 % between 2013 and 2023. More than 80 % of increased demand came from emerging and developing economies, and electricity consumption was the big driver (ironically, in part, due to the increased deployment of air conditioning units to counter extreme heat).
Growing supplies of renewable and nuclear energy covered 80 % of the increase - and a record 40 % of total electricity generation. At the same time, oil's share of the energy mix dropped below 30 % for the first time, 50 years after peaking at 46 %. Demand for coal grew by half the rate of the previous year.
These are good signs, but to achieve a net-zero emissions scenario by 2030, annual renewable energy use must increase by 15 % on average between now and then, which would be four times the average growth achieved over the past five years.
There are also challenges up ahead, as the developers of wind, solar and geothermal plants navigate a web of financial, regulatory and logistical challenges. Major offshore wind projects have been delayed in the UK, Norway and the US, while planning and infrastructure issues are holding up solar farms. Inflation and supply chain issues are also causing problems. Energy analysts have pointed out the need for more decisive policy making and better financial mechanisms to boost investor confidence.
At the same time, there is reason for optimism: Electricity is set to become the most important source of energy in the future due to the growing rate of electrification. Global solar and wind capacity is expected to increase almost sixfold from 2700 GW today to 15,400 GW by 2050, playing an increasingly important role in future electricity generation. A growing number of companies in the US and Europe are likely to benefit from this transition to renewables.
From construction to the way we heat, cool and use our indoor spaces, the built environment is responsible for about 40 % of global emissions, more than any other sector. Traditionally, much of the focus has been on reducing operational emissions by, for example, installing more efficient boilers and heat pumps, or retrofitting better insulation and windows. These are good measures, and there is momentum behind them, but progress on reducing the carbon embodied in buildings themselves, from the production of vast quantities of concrete, steel and aluminium, has been more challenging and slower to realise.
Global cement manufacturing alone is responsible for up to 8 % of global CO2 emissions. Yet production only grows, reaching a current high of 4.1 billion tonnes a year with industry predictions of a further rise of up to 23 % by 2050. It's a similar picture in the steel industry, which produces comparable emissions. Continued growth at the current rate is incompatible with a net-zero scenario.
With higher upfront costs still typically associated with sustainable building, economic challenges as well as gaps in financing and incentives - plus a political urgency around the construction of new affordable housing by the cheapest means - are trapping developers in a "business as usual" mindset.
However, the concrete industry points out that emissions per tonne have been reduced and there are several ways to produce the material more cleanly, such as replacing the energy-intensive limestone constituent with carbon-free calcium silicate rocks, and using cleaner energy to fuel production. A cement plant in Norway is now equipped with a carbon capture plant to divert emissions to storage facilities under the North Sea.
The EU included cement and steel as examples of the polluting industries whose transitions it plans to support with its Clean Industrial Deal, which it published in February. Meanwhile the architecture industry is promoting a shift away from concrete and steel as a default construction method towards more sustainable materials such as stone and engineered timber from managed forests, as well as improved incentives for adapting rather than demolishing and replacing existing structures.
Agriculture for food and products such as materials including leather account for almost 30 % of global greenhouse gas emissions and about the same proportion of global energy demand. It's not just making food that harms the environment, but the compounding effect of making space for it; agriculture is the primary driver of deforestation, which takes out vital carbon sinks. Moreover, the global population is expected to hit 11 billion by 2100. Something has to give.
The solutions are well mapped, even if moving towards them is complicated. In its latest climate assessment, the Intergovernmental Panel on Climate Change (IPCC) set out some of the required adaptation and mitigation measures, including practices associated with organic and regenerative agriculture such as cover crops, reduced pesticide use, rotational grazing, crop diversification and a shift away from synthetic fertilisers. Work to reduce the estimated 25 to 30 % of food that is wasted also needs to be done.
Technology is part of the picture, including GPS soil sampling techniques that help build up a map of fertility across land to better inform decisions about planting and fertilising. Data analysis is helping farmers monitor production and the costs and benefits of different crops and techniques. Improved weather forecasting and climate modelling minimises uncertainty while blockchain monitoring systems can track supply chains more efficiently.
But barriers to change in agriculture include a relative skew towards older generations less likely to embrace change or technology, and a shortage of financing options for those who would change but are struggling to survive in an industry of vanishing margins.
Consumer demand may compel change but a shift from high-emission foods such as meat (and in particular beef) towards more plant-based habits has been faltering. In some markets a trend for well-marketed plant-based foods appears to have peaked amid concerns about high prices in a cost-of-living crisis and wider awareness of the health risks of ultra-processed foods. A shift to more natural, less processed plant staples such as pulses will require a harder sell to consumers who still default to meat.
From bicycles to container ships, the relative impact of passenger and cargo transportation has always been perhaps the easiest for the general population to grasp. There is no escaping the consequence of flying, for example, when you can see, hear and feel the massive engines on the other side of the window.
According to the IPCC, direct greenhouse gas emissions from transport account for 23 % of global energy-related CO2 emissions. Almost three-quarters of these came from road vehicles, with 1 %, 11 %, and 12 % coming from rail, shipping, and aviation, respectively.
In its latest report, the IPCC pointed out the directly related need for better urban planning to challenge the structural dependency on cars by better incentivising walking and public transport. Engines in road vehicles have become more efficient thanks to regulations and improved technology, but those gains are slowing and are insufficient if the sector is going to hit decarbonisation targets.
The shift from combustion engines to hybrid and all-electric has been rapid. One in five cars sold in 2023 was electric, while sales reached a record high in 2024. But adoption rates have also slowed and environmentalists warn against relying on electric cars at the expense of greater investment in public transport and urban planning. There's a lot less embodied carbon per passenger in an electric bus or train, for example, than in a car that may still frequently contain one passenger.
Meanwhile a move to more sustainable alternatives has been slow in shipping and aviation, where fossil fuels still dominate and electric power, as well as the production of bio and synthetic fuels, have so far proved hard to scale.
What may end up being the planet's salvation is the growing realisation of the financial advantages of adapting to a changing climate. But in every sector, and at every level, the transition is costly.
Discussions at COP29 in Baku last year were billed in advance as the "finance COP" with high hopes that states would commit to more effective funding of solutions globally. The Group of 77 (G77) developing countries plus China went in demanding USD 1.3 trillion each year for climate mitigation, adaptation, and loss and damages. Donor countries countered with just USD 250 billion per year by 2035 before the conference settled on a figure of at least USD 300 billion per year by 2035 with a goal to scale up to USD 1.3 trillion by 2035.
But there were gaps in this vision, including ambiguity in the extent to which the funds should be for mitigation or adaptation. It was also unclear what type of funding this should be, from government funding through public and multilateral institutions to private finance from banks or foreign direct investment. Will the new finance be channelled through existing UN climate funds such as the Green Climate Fund or bilaterally by donor countries? What will the balance be between grants and loans? And who counts as a "developed" country when it comes to splitting the bill?
Meanwhile, a glance at the behaviour of private investors shows us that their interest in sustainable investing has risen globally over the years, as they look for companies or funds that aim to achieve market-rate financial returns while also considering positive social and/or environmental impact. Research shows that ESG-aligned companies often stand out for their robust fundamentals - a potential advantage for building resilient portfolios. Additionally, investment options such as blended finance for institutional investors or impact investing for private investors are on the rise, offering innovative ways of investing in new climate solutions.
Despite the complexity and urgency of climate change, momentum is building across energy, infrastructure, agriculture, transport and finance - often slowly, unevenly, and not without setbacks - but undeniably forward. Each innovation, investment and policy shift is a step toward a more resilient, sustainable future. The road to climate recovery may be long, but it is navigable - and, crucially, it is one we are already on.
