While the global community faced numerous urgent environmental challenges, 2024 emerged as a pivotal year for global sustainability. From transformative policies to cutting-edge technological advancements, the year showcased growing momentum toward a greener, more sustainable future. This article highlights key sustainability milestones of 2024 and examines what lies ahead for global sustainability in 2025.
Major Developments in 2024
- Climate Policy and Commitments
International Agreements: The 2024 United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, concluded with a central focus and an agreement on plans for climate finance, in order to mitigate the effects of climate change particularly on developing nations, helping them in transitioning to more sustainable energy sources. Additionally, rules and a UN registry were established to facilitate and record international trading of carbon credits.
Regional Developments: The European Union’s Corporate Sustainability Reporting Directive (CSRD) came into effect in January 2024, requiring companies to report on the environmental and social impact of their business. Compliance is mandated for firms already mandated to comply with the NFRD. This includes all organizations listed in an EU-regulated market with 500 or more employees. - Renewable Energy Transition
Advancements: In 2024, the renewable energy sector faced challenges due to geopolitical shifts, including the election of Donald Trump as U.S. President, who has expressed scepticism about climate change. Despite this, the sector continued to offer investment opportunities, with companies like NextEra Energy and RWE maintaining stability or growth. The focus remained on cost-effective energy solutions, favouring solar and onshore wind energy.
Policies: Similarly from a policy perspective, in 2024 Joe Biden’s flagship climate bill – the Inflation Reduction Act (IRA) was put under question by the newly elected government, considering reevaluating the $370bn promised under IRA to democratize energy transition. - Circular Economy Progress
o Corporate Initiatives: Businesses worldwide increased their focus on sustainability, recognizing the need to reduce environmental impact and align with climate goals. In Ireland, for example, sectoral emissions ceilings targeted a 35% reduction in enterprise sector emissions by 2030, with government funds introduced to help industries decarbonize. - Biodiversity and Nature-Based Solutions
o Conservation Efforts: The travel industry highlighted innovations addressing sustainability, with projects like Synhelion’s solar fuel production plant and Delta’s accessible airplane seating designs. Environmental initiatives included Hurtigruten’s zero food waste system and partnerships supporting conservation projects. - Technological Advances
o Educational Initiatives: Institutions like Arizona State University (ASU) advanced sustainability education, with ASU requiring all incoming students to take a sustainability course. In 2024, ASU received $15 million from the National Science Foundation to lead a research hub focused on carbon capture, water security, and renewable energy. - Corporate and Consumer Shifts
o Sustainable Housing: Developers launched funds to finance sustainable residential developments. For instance, a $250 million Regenerative Decarbonisation Fund was introduced to support projects in Melbourne, aiming to develop 5,000 apartments by 2030 in alignment with Australia’s climate goals.
As global sustainability reporting became increasingly mandatory in 2024, organizations faced increasing disclosure standards and regulatory requirements for reporting on environmental, social, and governance (ESG) issues. Adequate data management, integration and ingestion have become essential to comply with these new standards.
What to Expect in 2025?
- Strengthened Global Collaboration: 2025 is expected to be a pivotal year for climate finance in the UK, with developments including COP29 negotiations and green initiatives. Key themes include the need for accelerated emissions reductions and leveraging private finance through national funds.
- Scaling Innovations: significant progress in sustainability technology is anticipated to shape 2025.
● Innovations in renewable energy, such as next-generation solar panels and advanced energy storage solutions, are expected to enhance efficiency and affordability. Carbon capture and utilization technologies are poised to scale, offering transformative solutions for industrial emissions.
● Digital technologies, including AI and blockchain, are becoming integral to sustainability. AI is optimizing energy consumption in smart cities and industries, while blockchain is driving transparency in supply chains, ensuring adherence to ESG standards. Quantum computing is another area gaining traction, promising breakthroughs in climate modelling and resource optimization.
● In agriculture, precision farming technologies are improving crop yields while reducing water and chemical use. Vertical farming and lab-grown meat are becoming commercially viable, addressing food security and reducing the environmental impact of traditional farming. - Stricter Policies and Regulations Expected in 2025: What to watch for?
In 2025, governments worldwide are expected to implement more stringent policies and regulations to address environmental sustainability challenges. Here are some key developments:
Carbon Pricing Mechanisms: Countries are anticipated to introduce or expand carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems, to incentivize emission reductions. For instance, the European Union’s Emissions Trading System (EU ETS) is expected to undergo revisions to align with the European Green Deal’s ambitious climate targets.
Building Codes and Standards
● Future Homes Standard (UK): The UK plans to implement the Future Homes Standard by 2025, ensuring new homes produce 75-80% less carbon emissions than those built under current regulations. This initiative focuses on improving energy efficiency and promoting low-carbon heating systems.
● International Building Regulations: Collaborations, such as those among Nordic countries, aim to develop climate policies for buildings, emphasizing the need for regulations to mitigate the built environment’s carbon footprint. These efforts highlight the importance of international cooperation in establishing effective building standards. - International Agreements and Collaboration
● Global Policy Principles: Organizations like the World Green Building Council have developed global policy principles to promote sustainable built environments. These principles serve as guidelines for countries to create and strengthen policies that support environmental sustainability.
● Climate Finance Initiatives: In the UK, 2025 is expected to be pivotal for climate finance, with developments including the establishment of the National Wealth Fund and GB Energy to leverage private finance for the energy transition. Regulatory changes will also require large companies to disclose sustainability standards, further shaping the industry’s landscape. - Circular Economy Policies
● Circular Economy Framework (Australia): Australia has introduced a Circular Economy Framework focusing on reuse, repair, and recycling to reduce environmental impacts. The framework aims to decrease the material footprint by 10% and increase material productivity by 30%, promoting sustainable practices across industries.
These policy developments reflect a global commitment to enhancing environmental sustainability through regulatory measures, aiming to mitigate climate impacts and build resilience in vulnerable communities.
Businesses are expected to continue prioritizing sustainability, with trends indicating that 2025 will be a pivotal year for ESG and Sustainability. There will be heightened regulatory pressures, technological advancements, and an increasing emphasis on transparency and accountability across industries.
The journey toward a sustainable future requires collective action. Governments, businesses, and individuals must continue to drive change, ensuring that progress is inclusive, equitable and impactful. Each step taken today lays the foundation for a healthier planet and a resilient global community.
The progress made in 2024 offers hope and direction for the years ahead. While challenges remain and targets are yet to be met, the innovations and commitments seen this year provide a robust foundation for achieving global sustainability goals in 2025 and beyond.
The progress made in 2024 underscores the growing importance of global sustainability in addressing environmental challenges. As we look toward 2025, continued innovation and collaboration will be key to advancing global sustainability efforts. Together, we can build a greener, more resilient future for all.
References
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