2025 Sees Widespread Retraction from Net-Zero Pledges Across Multiple Sectors
In 2025, a global trend has emerged where numerous companies and sectors are retreating from or weakening their net-zero commitments, prioritizing shareholder returns over climate action. This shift spans various industries, including energy, transport, finance, retail, and local government.
In the United Kingdom, the political landscape has influenced net-zero approaches. The Reform UK party has gained influence, and Conservative leader Kemi Badenoch has abandoned the net-zero by 2050 goal, while the Labour Party continues to defend its net-zero policy.
Among energy companies, oil majors BP and Shell have scaled back their climate commitments. Offshore wind developments have also seen setbacks, with Ørsted canceling the Hornsea 4 project. The International Energy Agency (IEA) reports approximately $2 trillion annually being invested in clean energy, though this is still only half the amount invested in fossil fuels.
The transport sector illustrates a stall in electric vehicle momentum. In the European Union, regulations will permit up to 10% petrol and diesel vehicle sales after 2035. In the UK, the zero-emission vehicle mandate has been loosened to allow more hybrid vehicles. Aircraft manufacturers Airbus and Boeing are planning future planes that will rely on kerosene engines, as the supply of sustainable aviation fuel remains limited.
Financial institutions have also pulled back on climate commitments. The Net-Zero Banking Alliance collapsed in October as JPMorgan, Citi, Goldman Sachs, Barclays, and HSBC withdrew. HSBC has delayed its climate goals by approximately 20 years. Additionally, investment giants Vanguard and BlackRock have exited the Net Zero Asset Managers initiative.
In retail, Morrisons delayed its net-zero deadline to 2050. The sector as a whole has met the 2025 milestone on only one measure related to logistics data, with 38% of top suppliers committing to net zero.
Local government actions reflect similar trends. Reform-led councils have rolled back net-zero commitments: Lincolnshire has blocked renewable projects; Staffordshire rescinded its climate emergency declaration; Derbyshire disbanded its climate committee; and West Northamptonshire dropped its net-zero target. Conversely, councils led by the Green Party are advocating for quicker decarbonisation.
Policy-wise, China continues to expand its renewable energy capacity. The UK targets near-zero electricity production by 2030 and maintains a pledge for no new North Sea oil drilling, though with caveats. Meanwhile, the cancellation of Ørsted’s Hornsea 4 offshore wind project highlights ongoing challenges in the clean energy transition.
