This report reveals that while the United States (US) President Donald Trump’s return to the White House is demolishing federal climate support, major US states, companies – and rivals such as China – are powering ahead with the switch to renewable energy. Other major economies and trading partners – such as the UK, India, the EU, Japan and South Korea – are rapidly shifting to renewables and reshaping trading prospects for Australia. 

The report finds that the global transition to clean energy is accelerating. This momentum is reshaping global trade and investment, creating risks for laggards and enormous opportunities for those ready to act. For Australia, the message is clear: its future prosperity depends on keeping pace.

Key findings

• In the US, states and businesses are charging ahead with action on climate change, despite opposition from the Trump administration.
• China – the world’s second-largest economy – is pressing ahead and capitalising on the economic opportunities of renewables.
• China’s emissions fell in the first half of 2025, and its clean energy exports across 2024 helped cut global climate pollution by 1%.
• As the world moves toward net zero, setting a stronger 2035 climate target for Australia can unlock a $190 billion boost to its export industries and better protect Australians from worsening climate harm.
• The growth of renewables will lock in coal’s inevitable decline in China, which is Australia’s second-largest coal export market.