Global Energy Transition Update: Progress Toward Net Zero Goals

The global energy transition accelerates in 2025 with renewable deployment reaching new records, though challenges remain in achieving net zero goals by mid-century. This comprehensive update examines progress across regions and sectors. Renewable energy capacity additions total 473 GW globally with solar leading at 278 GW followed by wind at 123 GW. China dominates installations but growth spreads globally with India, Brazil, and the US showing strong momentum. However, fossil fuel demand remains resilient with oil consumption averaging 102 million barrels daily, just 2% below pre-pandemic levels. Natural gas demand grows 3% annually as transition fuel despite methane emissions concerns. Coal use declines in developed markets but increases in developing countries offsetting global progress. Carbon emissions plateau at 37 billion tonnes CO2 annually requiring rapid reduction to meet climate goals. Energy storage deployment quadruples to 120 GWh enabling grid stability as renewable penetration increases. Battery costs fall below $100/kWh making storage economically viable for multiple applications. Green hydrogen production scales with electrolyzer capacity reaching 25 GW though costs remain elevated at $4-6/kg. Industrial applications lead adoption with steel and chemical companies piloting hydrogen processes. Electric vehicle sales reach 18 million units globally representing 20% market share. Charging infrastructure expands rapidly though rural coverage lags urban deployment. Grid modernization investments total $280 billion annually enabling renewable integration and electrification. Smart grid technologies optimize energy flows reducing waste and improving reliability. International cooperation accelerates through technology transfer and climate finance mechanisms. The Green Climate Fund mobilizes $15 billion for developing country projects. The report concludes transition momentum builds but requires acceleration to meet climate commitments.