The annual World Economic Forum is underway in the Swiss ski resort of Davos, providing a snowy backdrop for leaders and CEOs to opine on international affairs, including close to 65 heads of state and government On Wednesday afternoon, US President Donald Trump is set to speak, with all eyes on whether he will further stoke a potential US-European trade war over his bid to grab Greenland.
Despite geopolitics grabbing the limelight, there are panels addressing issues including electric vehicles, energy security and climate policy. Keep up with top takeaways from those discussions and other climate news from Davos in our bulletin, which we’ll update throughout the day.
In energy transition’s “messy phase”, climate policy falters but clean tech marches on
Politicians may be struggling to free themselves from the clutches of fossil fuel interests, but that won’t slam the brakes on the march of clean tech and renewables worldwide, former US Vice-President and longtime climate advocate Al Gore said at Davos on Wednesday.
Moderating one of the first panels on day two in an almost empty room, he made a stab at answering the question posed by the World Economic Forum: “How do we avoid a climate recession?”
Gore said he sees “a climate policy recession, but not a recession in the energy transition”. That, he explained, is because policy is controlled by governments – “and too many governments are now, unfortunately, controlled by special interests”, namely the fossil fuel industry which is “significantly better at capturing politicians than at capturing emissions”.
The result has been “schizophrenic” policy on addressing climate change in some countries, including in the US, he said, with periods of slamming on the brakes and “going back to the dirty fossil fuels” to satisfy the industry.
In the real world, however, the advantages of renewable energy have become obvious, as have the consequences of the climate crisis, he added, listing a litany of recent impacts.
On the technology front, Gore pointed out that in 2025, of all new electricity generation installed worldwide, 93% was renewables, and “the only thing coming down faster in price than solar panels is utility-scale batteries, because the production is doubling every year”. “So we don’t have a recession in the movement toward this energy transition, in my opinion,” he added.
Entrepreneur Zhang Lei, founder and CEO of Envision, which develops technology for clean energy systems and AI-powered energy digital platforms, said there may be some swings in climate policy but “the fundamental physics is actually improving”.
He pointed to an 80% drop in the price of energy storage in the last three years, which he said opens up a lot of opportunities to increase the penetration of wind and solar. That, he added, is exactly what is needed to meet the upsurge in electricity demand driven by the advent of artificial intelligence (AI), describing renewables as “infinite and inexpensive energy resources”.
Fossil fuels, by contrast, are “finite” and therefore not up to the job of powering an AI-based future, with electricity supply expected to increase by 10 times in the next 15 years. Renewables, however, are competitive and approaching “zero marginal cost”, he noted.
“We are so lucky to have renewable energy ready” to take advantage of “great prosperity” driven by AI, Zhang added, noting China’s pivotal role in providing the necessary clean tech to much of the world.
Investment by China is making the renewable energy transition “irreversible”, argued Elizabeth Thurbon, professor of international political economy and director of the Green Energy Statecraft Project at the University of New South Wales.
China will stay on this path, she added, because the government understands that the energy transition “is a massive national security multiplier” by boosting economic security, energy security, environmental security, social security through jobs and geo-strategic security.
Globally, however, she warned that the transition is “in a really messy, messy phase”, due largely to poor governance, especially across a lot of Western countries.
Carsten Schneider, Germany’s environment minister, argued that the European Union, for one, has not taken its foot off the climate policy pedal, agreeing a new emissions reduction goal of 90% by 2040 last December. But that was a hard-fought win, amid pressure from some coal-reliant Eastern European countries to soften the target.
EU’s new climate target lines up multibillion-dollar boost for carbon markets
On Tuesday afternoon, in a separate panel, Andrew Forrest, executive chairman and founder of Australian mining company Fortescue, advised politicians and business people not to waver in their commitment to the energy transition – from an economic perspective, if nothing else.
He spoke of his company’s plan to save up to a billion dollars per year in operating costs by removing over a billion litres of diesel from its supply chains by 2030, replacing the dirty fuel used by trucks, trains and ships with renewable energy and batteries. This will improve Fortescue’s efficiency and competitiveness, and cut pollution, Forrest added, enabling it to outperform its peers.
He appealed to fellow business and political leaders to follow economic sense, urging them not to turn away from renewables in 2026 “because the winds of politics blew your values over”.
Big corporate polluters’ emissions rise in 2024
The NGO Influence Map has published its latest annual ranking of the greenhouse gas emissions of the world’s most polluting companies, using data from 2024.
The Carbon Majors database tracked 166 oil, gas, coal and cement producers and found that their total emissions increased 0.8% in 2024 compared with the previous year.
It shows that the trend has continued for state-owned fossil fuel companies – which account for 54% of emissions – to increase their emissions while those of private corporations plateau.
The top five state-owned emitters in 2024 were Saudi Aramco, Coal India, CHN Energy, National Iranian Oil Co., and Russia’s Gazprom.
The data update said emissions are increasingly concentrated among a smaller number of companies, with just 32 companies responsible for over half of global fossil CO₂ emissions in 2024, down from 38 five years earlier.
Influence Map noted that 17 of the top 20 emitting companies in 2024 were controlled by countries that opposed COP30 launching work on a roadmap to transition away from fossil fuels.
“Carbon majors are clinging on to outdated, polluting products and continue to mislead the public on the urgent real-world consequences of their actions. But they cannot hold us back for long,” said Christiana Figueres, former UN climate chief and co-founder of Global Optimism.
She added that the data provides a tool for “the growing majority who are coming together to champion science-backed solutions and accountability”.
The dataset has been used for lawsuits against polluting companies like Chevron, BP and RWE across Europe and the US.
