As the political climate remains turbulent in the new U.S. Administration, many climate activists fear political headwinds will derail progress that has been made toward Carbon ZERO goals. Not so fast, says Zero Carbon Academy (ZCA). In a recent publication, the organization identified the top five trends for 2025, and offers hope that progress toward climate goals will continue, albeit perhaps somewhat more slowly.
The full report is well worth reading. We provide a short summary of their work here. In ranking trends, ZCA considered impact on consumers and businesses, the likelihood of a particular event or action occurring in 2025, the risk from failing to act, and the complexity of the action required.
- Supply Chain Traceability: In light of upcoming new regulations in the EU and elsewhere, companies can work to get reporting practices in place and taking action today that can ultimately provide them with competitive advantage.
- Climate Resilience: The report states: “2025 will see businesses ramp up investments in ecosystem restoration and conservation projects driven by the need to address climate change, biodiversity loss and land degradation.” Regulation will be a driver here as well, particularly with the EU’s Corporate Sustainability Reporting Directive requiring some companies to begin reporting this year.
- Artificial Intelligence: It’s no secret that this is a hot topic pretty much everywhere around the world. ZCA expects to see companies move from basic to more sophisticated applications in 2025, redefining business operations.
- Voluntary Carbon Markets (VCMs): Significant expansion is expected in this space, “supported by improvements and uptake in AI and big data analytics, which will optimize carbon sequestration projects and trading strategies.”
- The Effect of Political Headwinds: ZCA “expects firms to conduct a balancing act between short-term and long-term climate goals, as they try to navigate the changing political and regulatory landscape. While some companies may pull back on initiatives in response to near-term pressures, others will recognize that inaction on sustainability carries a more significant long-term risk.”
This report is well worth reading in full. Keep in mind, as we have said many times, that although perhaps the most aggressive climate regulations are coming out of Europe these days, companies from other regions that want to do business there will be forced to comply. Are you selling anything into Europe? Do you provide anything to European partners for manufacturing or resale? Do you have staff located in Europe? Think through all this carefully as you consider your climate initiatives for 2025 and beyond. This report will be quite helpful in that endeavor!
