Global Net-Zero News & Policy: Fall 2025

Author: Elsie Andreyev

 

This update presents recent research, policies, and initiatives that directly impact how companies plan for, disclose, and achieve net-zero emissions.

In this article, we discuss:

• Recent findings on the health impacts of greenhouse gas emissions.
• A new UK analysis of technology priorities and emerging “wildcard” innovations to help reach net zero targets.
• Recent financial and regulatory developments shaping decarbonization, including the newly introduced SBTi standard and the recently announced ECB climate risk mechanism.
• Updates on global climate targets, tensions, and opportunities, including the EU’s 2040 target, the IMO Net-Zero Framework, and momentum toward COP30.

 

New Research and Technology Insights for Net-Zero Goals

Incontrovertible evidence: greenhouse gas emissions threaten human health and welfare

The National Academies of Sciences, Engineering, and Medicine published a new report that provides incontrovertible evidence for current and future harm to human health and welfare due to human-caused greenhouse gas emissions. This research was conducted in light of the recently proposed rulemaking to overturn the US EPA’s 2009 Endangerment and Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) of the Clean Air Act. The 2009 EPA Endangerment Finding was based on key reports and scientific assessments, including the IPCC Fourth Assessment Report, which indicated that greenhouse gases harm human health and welfare.

The 2025 report systematically reviews 16 years of evidence since 2009, providing strengthened proof that previously tentative patterns are now clear long-term trends. It also identifies new risks not evident in 2009 on potential impacts such as antimicrobial resistance, kidney disease, and mental health.

Over the past 16 years, researchers have found new evidence of the negative long-term health impacts from ozone exposure, increased health effects associated with airborne soil dust, and newly identified elevated risks for pregnant people and children. Despite advances in technology that have mitigated some risks, the report details negative impacts on agriculture, changes in forest composition and their effects on ecosystem services, and declines in water quality and availability in some regions.

What this means for net zero: The authors emphasized that the severity of impacts “increases with every ton of greenhouse gas emissions emitted.” This reinforces the urgency of immediate climate action and net zero. The report’s findings emphasize that limiting cumulative global emissions is essential to prevent further harm to human health, ecosystems, and critical resources.

Governments, businesses, and individuals should collaborate on sustainable practices, robust climate policies, and investments in green technologies. Collective and immediate action is essential for securing a healthier planet for future generations.

New UK report identifies priorities and emerging “wildcards” for UK climate goal

In August 2025, the UK’s Government Office for Science released the Net Zero Technology Outlook report. This report analyzes the technology, research, and development required to help achieve the UK’s 2050 net-zero target. The recommendations are categorized into five sectors and 18 sub-sectors, evaluating technologies based on their readiness and potential impact. Priorities are categorized into three focus areas: technology development, decision support, and delivery. This report also identifies “wildcards,” which are emerging technologies that are not yet widespread but may have significant influence. 

What this means for net zero: This report offers an overview of current and emerging technologies that can assist organizations pursuing net-zero in their planning, investment, and implementation strategies. It outlines near-term solutions and emerging “wildcard” technologies, helping organizations prioritize actions, identify opportunities, and make informed decisions about where to allocate resources.

 

Climate Finance and Regulatory Developments

SBTi has released its first Net-Zero Standard for banks

The Science Based Targets initiative (SBTi) introduced its first Financial Institutions Net-Zero Standard (FINZ) in July 2025. This standard provides a science-based framework for banks, insurers, and investors to align their portfolios with global net-zero goals by 2050. Users must publicly commit to net zero, and set targets consistent with a 1.5°C pathway. SBTi provides criteria for setting sector-specific targets, and supports interoperability with third-party methodologies such as The Climate Registry’s General Reporting Protocol. 

Through December 2026, both the FINZ and the existing Financial Institutions Near-Term Criteria will be available for target validation. Starting in January 2027, SBTi intends for financial institutions to exclusively use the new FINZ to set both near-term and long-term targets. 

To assist financial institutions in setting and tracking targets, SBTi provides an interactive target-setting spreadsheet and guide to calculate minimum target ambition.

What this means for net zero: The release of FINZ offers guidance for financial institutions to direct capital to net-zero investments, supporting the transition of entire industries and global net-zero efforts. The framework facilitates collaboration among stakeholders by creating a common understanding of climate goals and aligning investment streams with these objectives. By establishing a standardized criteria, FINZ improves transparency and accountability, enabling institutions to mobilize funds for renewable energy and sustainable infrastructure.

The European Central Bank (ECB) will assess bonds based on climate risk beginning late 2026

A new measure introduced by the Governing Council of the European Central Bank (ECB) will, for the first time, call for the central bank to factor in the risks of climate change in its lending. The value of any assets used as collateral for loans will need to reflect the assets’ exposure to climate-related transition risks. It is set to be implemented in the second half of 2026.

Moving forward, the ECB will consider sectoral risk, a climate score of the issuer, and the remaining maturity of the asset. Higher-carbon risk assets will be discounted to reflect the potential costs associated with mitigating the effects of climate change. Banks that hold greener assets will be able to borrow more against them, making those assets more liquid and cost-effective to finance. This measure intends to protect the ECB’s balance sheet from losses if these assets lose value during the low-carbon transition. This new measure by the Central Bank sends a clear signal to the market that climate risk is financially material.

What this means for net zero: Over time, this mechanism encourages financial institutions to shift portfolios towards lower-carbon investments and demonstrates how central banks can drive climate action not just through regulation but also through their core monetary operations. This move indicates that the ECB is integrating climate considerations into its monetary policy framework, aligning with broader efforts to promote sustainability in the financial sector. 

 

Global Climate Targets and Tensions

EU proposes 2040 emissions target and limited use of international credits

A draft proposal by the European Commission aims to establish a legally binding interim emission reduction target of 90% compared to 1990 levels by 2040. It includes new mechanisms to add flexibility. Historically, EU emissions targets required that all reductions come from domestic measures and policies without any allowance for international carbon credits. For the first time, this proposal allows international credits from the Global South to cover up to 3% of the 2040 target. The aim is to cost-effectively reduce emissions, encourage global investment in climate solutions, and align with the Paris Agreement’s principle of international cooperation. 

It also introduces flexibility through the use of carbon removals, both natural sinks and engineered options, to balance residual emissions. This additional flexibility is intended to ease pressure on EU industries facing high costs, including hard-to-abate sectors. 

The European Union’s leading scientists, the European Scientific Advisory Board on Climate Change, warn against allowing international credits for the 2040 target. This body is concerned that allowing international credits could “undermine domestic value creation by diverting resources from the necessary transformation of the EU’s economy,” particularly if credits are not high-quality carbon removal credits. The proposal will now move into negotiations among EU member states and the European Parliament, where the details on flexibility and credit use are likely to face intense debate before a final law is adopted.

What this means for net zero: The EU’s proposal reflects a balance between ambition and compromise. A legally binding 90% reduction target by 2040 would set one of the strongest and most ambitious interim goals globally. The proposed flexibility reflects the need to balance political, environmental, and economic pressures to meet the targets at the lowest cost while achieving sustainable economic development.

Adoption of IMO’s Net-Zero Framework faces threats 

The International Maritime Organization (IMO) is moving forward with the Net-Zero Framework (NZF), with a final vote scheduled for mid-October. The framework seeks to establish a decarbonization path for the global shipping industry and support infrastructure in the Global South. However, reports indicate that the US has threatened to levy tariffs or other retaliatory measures against countries supporting the framework, which increases the risk that it will not be adopted, potentially undermining global efforts to decarbonize shipping and destabilize investments in port infrastructure.

The International Association of Ports and Harbors warned that failure to adopt the NZF would create investment uncertainty, jeopardize the ability to achieve net zero targets, and result in a patchwork of regional measures. They emphasized it would compromise the just transition for the Global South, which needs an estimated $55-83 billion for port adaptation and mitigation support. 

Despite threats, the NZF continues to receive support from a broad coalition of countries and industry groups. Major shipping nations, including China, Brazil, and EU members, along with over 180 companies in the Getting to Zero Coalition and the Global Maritime Forum, have called for its adoption. Additionally, the International Chamber of Shipping, which represents more than 80% of the world’s merchant fleet, is also advocating for its implementation. 

Given their role as shared infrastructure hubs for multiple hard-to-abate sectors such as steel, cement, chemicals, power, and aviation, ports are key to accelerating the shipping industry’s transition to carbon-neutral fuel. A new report presents technological solutions.

Together, these reflect a strong global commitment and exciting possibilities for decarbonizing maritime transport.

What this means for net zero: Shipping is responsible for nearly 3% of global emissions, and underpins all sectors of the economy. A global framework would mitigate the risk of fragmented regional policies, provide a clear investment signal for carbon-neutral fuels and port infrastructure, and help direct finance toward the Global South. 

Momentum for COP30: Guterres urges enhanced national climate commitments

On September 24, leaders from various countries attended the Climate Leaders Summit hosted by the UN Secretary-General, António Guterres, to build momentum ahead of the November COP30 climate conference. Guterres called on countries to adopt more ambitious climate targets for 2035, urging faster and deeper emissions reductions than previously pledged. He emphasized that while the Paris Agreement has helped reduce projected temperature rises from 4°C to 2.6°C, current commitments, even if fully implemented, are insufficient to limit global warming to 1.5°C. 

Guterres outlined five priority actions: 

• Accelerating the energy transition,
• Reducing methane emissions,
• Halting deforestation,
• Deploying new technologies for hard-to-abate sectors, and 
• Addressing climate justice through financial reforms.

Guterres also noted that all countries are expected to submit updated Nationally Determined Contributions (NDCs) this year, but as of the February 2025 deadline, only 47 countries had presented their plans. Brazil submitted its new NDC in November 2024, setting a target to reduce net greenhouse gas emissions by 59-67% below 2005 levels by 2035. In contrast, the European Union has missed the submission deadline and offered only a temporary target. Guterres stressed that COP30 in Brazil must deliver a credible global response plan to realign global efforts.

What this means for net zero: COP30 represents a critical opportunity to advance global climate action. Without more ambitious and binding national commitments, the world risks exceeding 1.5°C of warming, leading to cascading impacts on ecosystems, human health, and economies. Strong NDCs and credible plans for 2035 are essential for keeping the Paris Agreement on track. These commitments can facilitate investment in clean energy and decarbonization technologies while ensuring financial resources are allocated to the transition in both high-income and low- to middle-income countries. The outcomes of COP30 will reflect the willingness of countries to implement systemic and coordinated actions necessary to achieve global net-zero emissions.