The past year has seen aggressive policy reversals in the United States aimed at dismantling climate action. The Trump administration has withdrawn from the Paris Agreement, cut clean energy funding, fast-tracked fossil fuel projects, and even threatened the legal foundations of climate regulation. Despite this, the clean energy transition continues to advance, driven by economic and technological forces that are proving increasingly difficult to halt. Here are seven key developments from 2025 that demonstrate why the momentum is shifting, regardless of political headwinds.
Renewables Now Lead: A Global Turning Point
For the first time ever, renewable energy sources—solar, wind, and hydropower—have surpassed coal as the world’s leading source of electricity. In the first half of 2025, renewables generated 34.3% of global electricity, exceeding coal’s 33.1%. This isn’t just growth alongside rising demand; renewables met all of the increase in global electricity use, with solar alone supplying over 80% of that growth.
The pace is accelerating: 380 gigawatts of new solar capacity were added in just six months—a 64% jump from 2024. This is no longer about idealism; it’s about economics. Clean energy is now the cheapest, fastest power source humanity has ever built.
China’s Dominance: The Default Global Option
China has become the single most important force in the clean energy transition. Its massive investments in solar, wind, and battery storage have driven down manufacturing costs to the point where clean energy is affordable almost everywhere. While China still relies heavily on coal, its dominance in clean energy production is shaping the global landscape.
This means cheaper rooftop solar in Europe, South Asia, and the Global South; more affordable batteries; and a diminishing need for countries to choose between climate action and energy access.
Coal’s Decline: Even in Strongholds
The global transition is now impacting even the most coal-dependent regions. Poland, historically reliant on coal, generated more electricity from renewables than coal for the first time in June 2025. Coal’s share of Poland’s electricity mix fell below 50% for an entire quarter, marking a significant shift.
In the UK, coal has nearly disappeared from the grid, with wind becoming the largest power source. Though the U.S. administration is attempting to prop up coal, its decline is inevitable; it’s simply losing the economic race.
U.S. States Lead Despite Federal Resistance
Even with federal policy setbacks, U.S. states are driving clean energy forward. Solar continues to dominate new electricity generation, accounting for roughly 75% of all new capacity added in 2025.
States have passed affordability laws, modernized grids, and invested in clean energy projects, often for purely economic reasons. Notably, 80% of U.S. solar manufacturing investment went to Republican-held districts, and many red states now lead in solar installations. Texas is on track to generate more electricity from solar than coal for the first time, with Florida, Georgia, and Arkansas close behind.
States are rushing to break ground on renewable projects before federal tax credits expire in 2026, locking in progress that future administrations can’t easily undo.
Electric Vehicles: Breaking Through
Over one in four new cars sold globally in 2025 was at least partially electric. This surge is happening primarily in emerging markets, where EVs are becoming the obvious choice for buyers. Globally, EVs and plug-in hybrids made up over 25% of new car sales.
The U.S. faces policy uncertainty slowing EV adoption, but the global trend is clear: automakers are designing for an electric future because consumer demand is there.
Batteries Solve the Reliability Problem
Battery storage has finally addressed concerns about the reliability of wind and solar power. The U.S. hit record-breaking storage installations in 2025, strengthening grids and storing cheap renewable energy for use when it’s needed. Falling costs and extending lifespans are making battery-backed renewables increasingly competitive with fossil fuels.
This turns renewables into infrastructure, not just energy sources.
The Data Center Challenge—and Opportunity
The rapid growth of data centers is increasing energy demand, often relying on a mix of renewables and fossil fuels (particularly natural gas). However, this demand is also driving investment in renewable energy infrastructure.
Moreover, community opposition to data centers is growing, with residents protesting rising electricity bills, pollution, and noise. This backlash provides a new, concrete target for climate activism, potentially reigniting the movement.
In conclusion: Despite political headwinds, the clean energy transition is continuing. Driven by economics, technology, and global demand, the shift towards renewables is proving difficult to reverse. The U.S. may be stepping back, but the rest of the world is moving forward, ensuring that every megawatt built today still matters for a more sustainable future.
