Energy transition investment tops $2 trillion, sustainable bonds projected to stand firm and DeepSeek shocks the markets
Also: AI funding outpaces climate tech, nations reaffirm climate goals and the 100 most sustainable companies named
It’s easy to scan the headlines and think that the future is bleak for sustainability.
However, the amount of money invested in the energy transition was stronger than ever in 2024. And, looking ahead, Moody’s project that the sustainable bond market will stay at over $1 trillion. Also, Goldman Sachs is launching a significant climate credit fund.
Finding reasons for optimism can feel difficult in a world that increasingly seems to put short-term gain ahead of long-term sustainability.
But there’s good news out there. There are millions of people working harder than ever behind the scenes to push the world towards a sustainable future. Join them.
Investment in the energy transition was over $2 trillion in 2024
📈 According to BloombergNEF’s Energy Transition Investment Trends 2025 report, global investment in the energy transition exceeded $2 trillion for the first time last year.
China’s growing level of investment fueled the bulk of that growth. Cash is flowing into mature, stable technologies such as electric transport, renewable energy, and power grid infrastructure. The growth of investment in less proven technologies is slowing.
While the world has passed an important milestone, much more investment is needed if the economy is to hit net zero by the middle of the century. The pace of growth is slowing compared to previous years.
Moody’s project sustainable bond market to hit $1 trillion in 2025
💰 In its 2025 sustainable finance and ESG outlook, Moody’s projects that the global sustainable bond market will reach $1 trillion this year.
It has been close to that level for five years, but growth is lagging behind the growth of the broader bond market.
The report predicts that “a continued focus on climate mitigation financing, as well as growing interest in climate adaptation and nature, will spur green and sustainability bond issuance”.
DeepSeek shocks the markets
🦾 DeepSeek unleashed an AI model that offers high performance at a fraction of the cost of other sophisticated models, such as those from OpenAI and Google.
The release shocked the markets, with chip makers and energy stocks taking heavy blows.
The question is that if AI requires less power in the future, would it lead to AI using less energy or AI becoming more widespread with increased demand? Time will tell.
AI companies raised twice as much as climate tech firms
🤝 Bloomberg reports that AI companies raised $21.4 billion in the final quarter of 2024. This is more than double the $10.3 billion amount raised by climate tech firms over the same period.
Switzerland, Britain and New Zealand reaffirm climate targets
🎯 As Trump moves to withdraw the US from the Paris Agreement, Switzerland, Britain and New Zealand submitted more ambitious, revised targets as well as further details of their plans to hit them.
Corporate Knights release list of world’s most sustainable companies
🏅 Corporate Knights has released its 2025 ranking of the 100 most sustainable companies in the world.
Goldman Sachs Asset Management raises $3 billion for climate credit fund
🌱 Bloomberg reports that Goldman Sachs Asset Management is raising $3 billion for a fund that will lend money to corporations working in the “transition to a low carbon future, such as clean energy firms and sustainable transportation providers”.
The fund will focus on North American and European investment opportunities.