As global leaders gather in London, focus shifts to unlocking private and public sector cooperation to deliver a net-zero future.
At the heart of London Climate Action Week 2025, the fourth Net Zero Delivery Summit brought together government officials, financiers, climate experts, and business leaders to address one of the most pressing challenges of our time: how to turn climate ambition into concrete action. This year’s central message was clear reaching net-zero by 2050 is not just a public sector responsibility. Private capital, aligned with supportive policies, will play a decisive role in shaping the global energy transition.
The summit, held between COP29 in Azerbaijan and COP30 in Brazil, marked a critical checkpoint for climate progress. It also highlighted London’s growing role as a hub for sustainable finance and a leader in global climate dialogue (Sustainability Magazine).
Uniting Finance with Climate Goals
Lord Mayor of the City of London, Alastair King, opened the event by emphasising the magnitude of the financial challenge ahead. According to estimates presented at the summit, the world will need around US$3.5 trillion annually to remain on track to meet the climate targets outlined in the Paris Agreement. This investment is essential to fund the shift towards renewable energy, carbon mitigation, and climate adaptation.
“Governments alone cannot deliver on these promises,” King stated. “Private finance must be part of the equation. But it’s only through cooperation through a convergence of public and private finance that we can make this transition a reality.”
He also stressed the need for financial institutions to think beyond traditional investment models. Transition finance, carbon markets, and nature-based solutions were among the topics singled out as priorities for action.
Tim Gould, Chief Energy Economist at the International Energy Agency (IEA), offered a sobering perspective on current trends. Despite record growth in renewable energy, the world’s total energy demand increased by about 2% in 2024, with much of this demand still being met by fossil fuels.
“The largest share of new energy supply came from renewables around 40% and about 8% from nuclear,” said Gould. “However, oil, coal, and gas still accounted for the majority. That’s why we continue to see annual emissions on the rise.”
He noted that the IEA projects about US$3.3 trillion in energy sector investment in 2025. Encouragingly, two-thirds of this investment is going into clean technologies like wind, solar, nuclear, low-emission fuels, and grid infrastructure. Yet, challenges persist in scaling these efforts fast enough to curb emissions.
Five Technologies Making a Difference
Gould highlighted five technologies that have made a measurable dent in global emissions over the past five years: solar, wind, electric vehicles, heat pumps, and nuclear. Without accelerated deployment in these areas, emissions would be approximately 7% higher today.
However, progress is uneven. While clean technologies are surging ahead in developed economies, investment in emerging markets remains limited. More than 80% of energy investment flows are currently going to China and other advanced economies. The remaining 20% is being allocated to developing regions despite these areas having some of the fastest-growing energy demands.
While the momentum behind clean energy is evident, speakers at the summit stressed that generation alone isn’t enough. Electrification of economies requires a robust foundation namely, expanded and modernised grid infrastructure.
Much of the world’s energy infrastructure is outdated and unprepared for the demands of a renewable future. Without improved energy transport and storage systems, renewable sources cannot reliably meet base load needs, especially in growing urban centres and industrial hubs.
The Missing Links to Net Zero
Several gaps in the energy transition were discussed in depth:
- Grid Expansion: Clean energy production is growing, but investments in transmission and storage are lagging. Without modernised grids, even the most advanced renewable projects can fall short of their potential.
- Industrial Decarbonisation: While clean energy is making headway in the power sector, heavy industry remains a major emitter. More innovation is needed to decarbonise cement, steel, and chemical production.
- Supply Chain Resilience: Transitioning to clean energy relies heavily on critical minerals like lithium, cobalt, and rare earth elements. Diversified, sustainable supply chains must be developed to avoid geopolitical risks and ensure long-term stability.
- Emerging Market Inclusion: The global energy transition must include developing nations. Without equitable investment, emissions will continue to rise in regions with the highest projected energy demand.
London’s Role as a Global Climate Hub
The summit made it clear: the path to net zero is a shared journey. No single government, company, or region can go it alone. It will take global coordination, transparent capital flows, and stronger international frameworks.
New partnerships must also be formed to de-risk investments in frontier and emerging markets. This includes blending public and private capital, supporting climate bonds, and developing local financial ecosystems that can mobilise funds for clean energy at scale.
London Climate Action Week continues to position the UK capital as a global leader in green finance. The city’s unique mix of policy institutions, financial firms, academic bodies, and climate organisations makes it a key node in the worldwide push toward sustainability.
With the financial sector now widely acknowledged as an essential player in climate progress, events like the Net Zero Delivery Summit are shaping not just national policy but global frameworks.
As the summit drew to a close, one message resonated throughout: achieving net zero is not just an environmental imperative it’s an economic opportunity. With the right collaboration and capital allocation, the energy transition can create jobs, improve resilience, and unlock sustainable growth for decades to come.
The Net Zero Delivery Summit at London Climate Action Week 2025 delivered a compelling reminder: the tools to meet our climate goals are already in play. What remains is the political will, financial commitment, and cooperative frameworks needed to scale those tools globally.
With US$3.5 trillion in annual funding required to reach net zero by 2050, there’s no time to delay. Private finance, when aligned with public policy, is not only capable of driving the transition it is indispensable.
