Nearly a year after Donald Trump returned to the White House championing fossil fuel expansion, resistance to climate commitments is gaining momentum across politics, industry, and finance. The global pushback against net zero reflects a widening gap between long-term climate goals and short-term economic and political pressures. Companies and governments are increasingly scaling back emissions pledges, prioritising profitability, energy security, and electoral appeal over decarbonisation.
In the UK, once seen as a climate policy leader, political consensus has fractured. The rise of Reform UK has reshaped debate, while Conservative leader Kemi Badenoch has formally abandoned the party’s commitment to reaching net zero by 2050. Labour has defended its own stance amid criticism from former leader Tony Blair, signalling that climate policy is no longer a settled issue across the political spectrum. This uncertainty has given businesses cover to weaken climate targets with fewer reputational consequences.
The transport sector illustrates this shift clearly. Carmakers that pledged rapid transitions to electric vehicles after the pandemic have slowed their plans as EV sales growth disappointed by 2024. Governments in the US, UK, and EU responded by easing regulations. Trump eliminated US EV subsidies and loosened emissions standards, while the UK relaxed its zero-emission vehicle mandate by allowing more hybrids. The EU followed with a partial retreat from its 2035 petrol and diesel phase-out. Electric-focused manufacturers warn that this hesitation risks leaving Western firms behind as China continues to accelerate its clean transport strategy. Aviation lags even further, with Airbus and Boeing committing to kerosene-powered aircraft, delays to hydrogen flight plans, limited sustainable aviation fuel supply, and airport expansion approvals that clash with climate targets.
Energy trends are more mixed. Globally, investment in clean energy now totals around $2tn annually—double fossil fuel spending—while renewable electricity generation has surpassed coal. China continues to expand renewable capacity rapidly, reinforcing its industrial advantage. In the UK, Labour’s plan for a near-carbon-free power system by 2030 has buoyed investors, but setbacks remain. Ørsted’s cancellation of the Hornsea 4 offshore windfarm exposed the financial strain facing renewables. At the same time, oil majors such as BP and Shell have retreated from climate ambitions, refocusing on oil and gas extraction and cutting green investment, undermining confidence in corporate alignment with net zero.
The financial sector has mirrored this retreat. The collapse of the UN-backed Net-Zero Banking Alliance marked a major reversal, with leading US and UK banks exiting amid political pressure. Asset managers including BlackRock and Vanguard have withdrawn from similar initiatives. HSBC delayed key climate goals and softened executive incentives, while fears persist that proposed UK rules requiring credible corporate transition plans may be weakened under City lobbying. Together, these moves erode financial momentum toward net zero.
Retailers and local authorities reveal similar tensions. Supermarkets like Morrisons have delayed emissions targets, while suppliers lag far behind retailers’ own efficiency improvements. Many councils once led climate action, but some Reform-controlled authorities are now rolling back renewables and efficiency programmes. In contrast, Green-led councils are accelerating efforts, underscoring a widening divide in commitment to net zero across the UK.