LSEG and Eurasia Group
In this article, we summarise six key insights from a high-level roundtable discussion hosted by LSEG and Eurasia Group on 25 June 2025 during the London Climate Action Week.
Conducted under the Chatham House Rule, the discussion focused on the accelerating transformation of global climate and energy policy, including the shifting role of geopolitical risk in shaping the energy transition and climate finance.
Six big themes
1. A changing climate policy landscape
The trajectory of climate policy is changing: while previous momentum centred on multilateral cooperation and net-zero commitments, new forces (such as energy security, rising populism, and energy competitiveness) are reshaping the agenda. These pressures require the climate conversation to evolve, finding new political narratives and frameworks for climate policy. This will also require the Paris Agreement process to find new ways to advocate for climate action.
2. Geopolitics will continue to influence the shape of the energy transition
Geopolitics are making some aspects of the transition to clean energy more challenging, while accelerating energy transition imperatives in other ways. The spread of green trade barriers and price volatility in energy transition commodities are headwinds to energy transition action in many markets. But the spread of green supply chains to new markets and the appeal of renewables for energy security concerns will provide tailwinds for the energy transition. As part of this, the energy transition is increasingly being driven by competitiveness and energy demand often independently of climate framing.
3. Global shifts in innovation and leadership
Patterns in global clean energy innovation are changing. Non-G7 countries are becoming leaders in patents and technology deployment. Industrial competitiveness is no longer the domain of Western economies alone, and countries in the Global South increasingly favor pragmatic partnerships and technology access over geopolitical alignment. The shift from a "molecules" economy to one centered on "electrons and data" suggests that there’s a broader industrial transformation.
4. Framing and messaging are essential
Public support for climate action is wavering in many regions partly due to communication gaps: climate policy can be perceived as elite-driven and disconnected from daily life. More targeted messaging – focused on prosperity and tangible benefits – is needed. Narratives that align with public sentiment, like framing adaptation measures as "physical resilience," may prove more effective in today’s political climate.
5. Infrastructure and grid capacity as bottlenecks
Grid investment is emerging as a critical battleground in the next phase of the energy transition across many major markets. Backlogs in connecting new renewable projects to the grid is also slowing progress. New financing models and permitting processes to make grid improvements more efficient will play an important role in unlocking the full potential of clean energy infrastructure.
6. Looking ahead to milestones like COP30
As countries prepare their next round of Nationally Determined Contributions (NDCs), the quality of NDCs is improving with more sector-specific plans, but the pace of submissions so far this year remains slow. COP30 in November is expected to focus less on goal-setting and negotiations, and more on acceleration of implementation, and private sector engagement on transition pathways. As the Paris Agreement evolves, real-world implementation and competitiveness (outside of Paris Agreement targets themselves) are now becoming more important.
Conclusion: A new demand for strategic framing of energy transition and climate finance
The biggest takeaway from the discussion was that geopolitics are now requiring that the energy transition and climate finance find new strategic rationales that align with public support and other national priorities. As climate and competitiveness agendas converge, real-world implementation as well as credibility (not just negotiation outcomes) will define the next phase of global climate action.
The roundtable was the latest in an international policy and thought leadership series produced in partnership by LSEG and Eurasia Group.
Read more about
Legal Disclaimer
Republication or redistribution of LSE Group content is prohibited without our prior written consent.
The content of this publication is for informational purposes only and has no legal effect, does not form part of any contract, does not, and does not seek to constitute advice of any nature and no reliance should be placed upon statements contained herein. Whilst reasonable efforts have been taken to ensure that the contents of this publication are accurate and reliable, LSE Group does not guarantee that this document is free from errors or omissions; therefore, you may not rely upon the content of this document under any circumstances and you should seek your own independent legal, investment, tax and other advice. Neither We nor our affiliates shall be liable for any errors, inaccuracies or delays in the publication or any other content, or for any actions taken by you in reliance thereon.
Copyright © 2025 London Stock Exchange Group. All rights reserved.
The content of this publication is provided by London Stock Exchange Group plc, its applicable group undertakings and/or its affiliates or licensors (the “LSE Group” or “We”) exclusively.
Neither We nor our affiliates guarantee the accuracy of or endorse the views or opinions given by any third party content provider, advertiser, sponsor or other user. We may link to, reference, or promote websites, applications and/or services from third parties. You agree that We are not responsible for, and do not control such non-LSE Group websites, applications or services.
The content of this publication is for informational purposes only. All information and data contained in this publication is obtained by LSE Group from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data are provided "as is" without warranty of any kind. You understand and agree that this publication does not, and does not seek to, constitute advice of any nature. You may not rely upon the content of this document under any circumstances and should seek your own independent legal, tax or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither We nor our affiliates shall be liable for any errors, inaccuracies or delays in the publication or any other content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the publication and its content is at your sole risk.
To the fullest extent permitted by applicable law, LSE Group, expressly disclaims any representation or warranties, express or implied, including, without limitation, any representations or warranties of performance, merchantability, fitness for a particular purpose, accuracy, completeness, reliability and non-infringement. LSE Group, its subsidiaries, its affiliates and their respective shareholders, directors, officers employees, agents, advertisers, content providers and licensors (collectively referred to as the “LSE Group Parties”) disclaim all responsibility for any loss, liability or damage of any kind resulting from or related to access, use or the unavailability of the publication (or any part of it); and none of the LSE Group Parties will be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, howsoever arising, even if any member of the LSE Group Parties are advised in advance of the possibility of such damages or could have foreseen any such damages arising or resulting from the use of, or inability to use, the information contained in the publication. For the avoidance of doubt, the LSE Group Parties shall have no liability for any losses, claims, demands, actions, proceedings, damages, costs or expenses arising out of, or in any way connected with, the information contained in this document.
LSE Group is the owner of various intellectual property rights ("IPR”), including but not limited to, numerous trademarks that are used to identify, advertise, and promote LSE Group products, services and activities. Nothing contained herein should be construed as granting any licence or right to use any of the trademarks or any other LSE Group IPR for any purpose whatsoever without the written permission or applicable licence terms.
