Energy Transition Faces Challenges a Decade After Paris Agreement

Ten years after the landmark Paris Agreement, the global shift towards clean energy is slowing down, even as renewable capacity installations reach record levels. The world has faced significant challenges since the agreement was signed in 2015, including a global pandemic, geopolitical tensions, and fluctuating energy policies. Despite these hurdles, the commitment to achieving net-zero emissions by 2050 remains a focal point for many nations.

In the past decade, the energy landscape has transformed. China continues to lead in clean energy investments and installations, producing solar and wind equipment at lower costs compared to both the United States and Europe. On the other hand, the European Union has maintained its strong focus on decarbonization, despite rising costs and increasing political resistance to interim targets. The EU’s climate directives have drawn criticism, especially from key trade partners, who warn that stringent regulations could jeopardize energy security.

Recently, the United States and Qatar issued a caution to Brussels regarding the EU’s corporate sustainability directive, suggesting it may affect liquefied natural gas (LNG) imports from two of the world’s largest exporters. This warning comes at a critical time as the EU seeks to eliminate all imports of Russian gas.

The backdrop of these developments includes a significant policy shift in the U.S. under President Donald Trump, who withdrew the country from the Paris Agreement twice during his tenure. This policy reversal has led to a reduction in support for clean energy initiatives, particularly in offshore wind and electric vehicle incentives. As a result, banks have begun to withdraw from net-zero alliances, halting previous commitments to cease financing fossil fuels.

The upcoming COP30 climate summit in Belém, Brazil, scheduled from November 10 to 21, 2025, aims to address these pressing issues. As renewable energy installations reach unprecedented heights, the overall investment and capacity additions still lag behind the targets needed for net-zero emissions. According to a report by BloombergNEF, while clean energy investments have surged, the transition remains too slow to meet the ambitious goals set in Paris.

Ethan Zindler, from BloombergNEF, highlighted that some nations are wavering on their climate commitments as the summit approaches, while the U.S. openly questions climate change. The report from the International Renewable Energy Agency (IRENA) and the Brazilian COP30 Presidency emphasizes that global progress on renewable energy and efficiency goals is falling short. It identifies investment bottlenecks, grid limitations, and supply chain issues as key obstacles.

Brazil’s role as host of COP30 presents a paradox. As the leading oil producer and exporter in South America, Brazil is expected to advocate for the Belém Commitment for Sustainable Fuels, which aims to significantly increase the production and use of sustainable fuels by 2035. Yet, as noted by David Brown from Wood Mackenzie, this initiative conflicts with Brazil’s plans to expand its upstream oil sector, illustrating the complexities facing large energy markets.

As the climate summit approaches, the global community must confront these challenges and work towards meaningful solutions. The urgency for bolder renewable energy targets is evident, as the world grapples with the implications of slowing progress on the path to a sustainable future.