As the planet’s number one emitter, there are hopes that renewed policies and reporting guidelines will pave the way for China to realise its 2030 carbon neutrality ambitions. While 2025 signals greener progress ahead, experts say the need to balance energy security interests, however, may see fossil fuels firmly in the grid for longer.
Developing the credit markets will address a funding gap for nature-based solutions, said Tharman Shanmugaratnam. His proposal faced pushback from other panellists at the World Economic Forum who cautioned against commodifying nature.
Asia Pacific nations face mounting climate costs as the world crosses the 1.5°C threshold, with extreme weather driving inflation, disaster risks and a US$815 billion annual financing gap for adaptation and resilience.
The year is likely to see cooperation between China and the European Union become more important, but both sides will have to carefully navigate developments that could lead to more trade friction. Transition finance is expected to grow.