Where is Clean Tech Shaping 2025’s Sustainability Landscape?
Generation’s 2025 Sustainability Trends Report sets out how technology, policy and investment have collided over the past year.
The firm’s annual review outlines the rapid acceleration of clean technologies alongside political reversals that have reshaped expectations across energy, mobility and industrial systems.
The report argues that 2025 has been marked by mixed signals. Technology deployment has surged, yet policy headwinds in the US have weighed heavily on global momentum.
It describes a “period of retrenchment” driven by the re-elected Trump administration, which has rolled back climate commitments and withdrawn from the Paris Agreement.
This, the report notes, has had a direct impact on technology investment pipelines, with nearly US$30 billion of prospective clean industry projects already cancelled.
China’s growing technology influence
One of the clearest shifts highlighted in the report is China’s strengthening position in clean technology. Its industrial strategy and expanding export capacity have made it a leader in renewable energy systems, solar manufacturing and electric vehicles.
China’s emissions appear to be nearing their peak earlier than expected and its electric vehicle market continues to grow at pace, with EVs representing close to 60% of new car sales.
The report contrasts this with the US, where EV adoption has stalled at around 10% of new sales. The authors describe China as a potential “electrostate”, driven by large-scale electrification and domestic investment in grid and manufacturing technologies.
Solar and storage change the power system
The report details the profound effects of solar and battery deployment on power systems. Global solar generation increased by 28.3% last year, with China adding record levels of new capacity.
In advanced markets such as California and Australia, batteries have started to reshape daily grid operation. They now cover a significant share of peak evening demand, reducing reliance on gas-fired generation.
These gains are against a backdrop of rising power consumption. Growth in electric vehicles, heat pumps, data centres and cooling technologies is pushing electricity demand up by nearly 4% annually.
This has created a gap between clean energy deployment and overall consumption, allowing fossil fuel generation to rise in absolute terms even as its share of the mix declines. The report notes that coal use remains close to record highs in China and India.
Transport technologies reach a turning point
Generation identifies electrification as the central trend in transport. The International Energy Agency expects electric cars to account for a quarter of global sales this year, with Europe and China continuing to lead adoption.
The report shows how political and economic dynamics have complicated progress in the US. While buyers have accelerated purchases to benefit from subsidies, longer-term stability remains uncertain. Tesla’s market position has weakened, particularly in Europe, where boycotts and price competition from Chinese manufacturers have reduced sales.
Heavy duty transport is showing early signs of transition, with electric lorry sales rising from a small base. However, the report stresses that infrastructure for high power charging remains limited.
Aviation and shipping are further behind, with sustainable fuels still constrained by cost, scale and financing barriers.
Hydrogen projects stall amid rising costs
Hydrogen emerges as one of the most challenged areas in the report. Generation concludes that the green hydrogen bubble has burst, with many European projects cancelled or postponed due to persistent cost gaps with grey hydrogen.
The authors argue that early optimism may have delayed more practical decarbonisation methods and note that oil majors were among the strongest promoters of the initial hype.
Technology, investment and risk
While political shifts have complicated climate action in 2025, investment patterns continue to favour clean technologies.
Hydrogen emerges as one of the most challenged areas in the report. Generation concludes that the green hydrogen bubble has burst, with many European projects cancelled or postponed due to persistent cost gaps with grey hydrogen.
The authors argue that early optimism may have delayed more practical decarbonisation methods and note that oil majors were among the strongest promoters of the initial hype.
Technology, investment and risk
While political shifts have complicated climate action in 2025, investment patterns continue to favour clean technologies.
Solar costs have fallen year on year since 2009 and clean energy investment now outpaces fossil fuels by roughly two to one.
Gas-fired power costs have remained largely unchanged, reinforcing the financial case for low-carbon infrastructure.
The report concludes that companies will need to respond to technological and market pressures even as policy environments fluctuate, emphasising that decisions made now will shape competitiveness in the years ahead.
