2025 was quite the year for climate and energy policies, technology development and record-setting. Next year looks set to be more of the same and then some.
In 2025, the energy transition suffered a number of bumps in the road, including United States President Donald Trump rolling back green policies, continued investment headaches linked to supply chain problems and more anti-renewables fossil fuel lobbying.
But even with those obstacles, the shift towards a greener world did still make progress. Numerous solar and wind power records were shattered around the world, new policies like carbon markets were rolled out and big leaps forward in battery technology were also front and centre.
Next year, there are a number of issues that will be top of the global energy transition agenda.
Electricity networks
One of the biggest problems facing Europe’s energy transition is grid infrastructure. In many countries, it is either outdated or simply insufficient to handle all of the new clean energy capacity being brought online.
Investments are being made, but construction takes time. Issues like permitting and sourcing all of the components needed to build more grid are also a concern.
The European Union has published a new strategy that should turbocharge the rollout of better and bigger power networks but it will now be up to governments in 2026 to actually implement those policies.
Bye-bye coal
The United Kingdom joined a growing number of countries to switch off its last coal power plant in late 2024. It was a symbolic moment for the energy transition given Britain’s historical use of the fuel during and after the Industrial Revolution. Despite grim predictions, those coal plants were not turned back on during 2025 either.
Last year, Ireland joined that club as well.
Now the question is who will be next? Italy is all but coal-free, Greece will de facto stop using coal in 2026 and Spain has accelerated its timeline, meaning it too could close its final plants next year as well.
Europe is quickly approaching a point where more countries have stopped using coal than are still using it. Given that Asia decreased its imports of coal in 2025, it might be that coal has well and truly peaked. In Europe at least, it is being consigned to the scrapheap of history.
Fossil fuel roadmap
At the end-of-year COP30 climate summit in Brazil, attempts by the host nation to broker an agreement on a fossil fuel phaseout roadmap ultimately came up short.
The idea is to have a common rulebook of principles, milestones and standards that can assist countries in cutting their reliance on oil, coal and gas. But that idea was vetoed by fossil fuel producing nations like Saudi Arabia.
Nevertheless, Brazil is not letting that defeat discourage its climate efforts and is working on a domestic roadmap that should be ready in 2026. Other governments could also follow suit, meaning that the chances of success at next year’s COP summit in Türkiye could be bolstered.
Trump’s anti-green crusade
US President Donald Trump spent much of 2025 undoing the pro-renewables policies of his predecessor. That included halting permitting for wind farms, issuing stop-work orders against projects already under construction and scrapping clean energy incentives.
At the halfway point of the year, it looked like green power was doomed in the US but towards the end of 2025, the sector’s fortunes have improved.
Legal cases against Trump’s various edicts have come out in favour of the industry, the loss of tax credits has hurt some firms but ultimately they are still able to build a decent subsidy-free business case and investments have not completely dried up.
Next year will obviously be a longer-term litmus test of the damage Trump and his team have done, but given that right at the end of 2025 the government approved a big solar plant on federal land, there might be light at the end of the tunnel.
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