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The report provides a detailed breakdown of aligned GSS+ debt volumes, issuer types, and geographic trends for Q1 2026, highlighting the continued dominance of green bonds and the European market.

In 2025, global electricity demand grew by 2.8% (849 TWh), all of which was met by low-carbon power generation, leading to a 0.2% decline in fossil fuel generation. Solar power was the primary driver, increasing by a record 636 TWh (30%) and meeting 75% of the net demand increase. For the first time in the modern era, renewables (33.8%) overtook coal (33.0%) in the global electricity mix. This shift was led by China and India, both of which saw declines in fossil generation in 2025. Additionally, battery storage is scaling rapidly, with costs falling 45% in 2025, enabling the shift of daytime solar generation to other hours.

Upgrading the millions of US homes relying on electric resistance heating to air-source heat pumps (ASHPs) and heat pump water heaters (HPWHs) offers significant benefits for affordability, grid reliability, and climate goals. For single-family homes, these upgrades can save households an average of $1,530 annually and reduce total carbon pollution by approximately 40%. At scale, such transitions could reduce US residential summer peak demand by 11 GW and winter peak demand by 51 GW. The report advocates for updating building energy codes to discourage electric resistance in new construction and retrofits, setting specific replacement targets, and implementing midstream incentive programs and on-bill financing to overcome up-front cost barriers.

The report finds that while India has achieved its non-fossil electricity capacity target of 50% by 2025, government support for fossil fuels remains five times larger than for clean energy. Total government support to energy in FY 2024 was at least INR 6.3 lakh crore (USD 75 billion), with a significant portion shifting from direct subsidies to investments by state-owned enterprises (SOEs) and public financial institutions (PFIs). The analysis highlights a critical fiscal reliance on fossil fuel revenues, which account for 90% of energy revenues, and a growing burden of electricity subsidies for end consumers that constrains fiscal space for clean energy. The report recommends transitioning to targeted direct benefit transfers for electricity, phasing out fossil fuel production subsidies, and implementing a strategic roadmap for aligning public finance with net-zero goals by 2047.

The report evaluates the climate transition progress of global private financial institutions (FIs) using the Net Zero Finance Tracker (NZFT). While target adoption has expanded, the quality of these targets remains weak, particularly regarding fossil fuel phase-outs. Implementation has improved in areas like climate risk disclosure, but real-world impact is limited: financed emissions have decreased only slightly since 2019, and credit financing remains heavily skewed toward fossil fuels. Direct finance for clean and transition energy projects grew by 18% annually from 2019 to 2024, reaching nearly USD 126 billion, though this investment is concentrated in advanced economies.

As of Q3 2025, the cumulative volume of aligned GSS+ debt reached USD 6.5 trillion. Green bonds remain the dominant theme, accounting for 64% of aligned volume in Q3 2025, while sustainability-labelled debt is gaining momentum. Non-financial and financial corporates were the most prolific issuers in the quarter, and supranationals remain the largest historical source of cumulative aligned volume.

The study integrates digital transformation projections into the Shared Socioeconomic Pathways (SSP) framework using statistical models calibrated from 62 countries. It highlights the risk of a persistent digital divide and provides a methodology for quantifying the impact of digitalization on climate goals and sustainable development.

The report finds that Chhattisgarh remains deeply dependent on fossil fuels, with government subsidies for coal and oil and gas being four times higher than those for clean energy in FY 2024. While the state has a vision to reach 66% renewable energy by 2047, current public investment is dominated by thermal power expansion and electricity price supports. Energy revenues, which make up 22% of the state's total receipts, are primarily driven by oil and gas VAT and coal royalties, leaving the state vulnerable to the national energy transition.

The Production Gap Report 2025 finds that governments are collectively planning more fossil fuel production than in 2023, with 2030 projected levels exceeding 1.5°C-consistent pathways by over 120%. While some countries are developing net-zero aligned scenarios, most continue to expand production and provide substantial financial support for fossil fuels, undermining Paris Agreement commitments.

The report finds that current EU ETS cap trajectories are more ambitious than required by most climate neutrality scenarios, potentially leading to severe allowance shortages and price spikes after 2035. It evaluates several reform options to balance supply and demand, including adjusting the linear reduction factor (LRF), reforming the Market Stability Reserve (MSR), and integrating carbon dioxide removals (CDRs). The authors warn against the inclusion of Article 6 international credits due to risks to environmental integrity and the potential for market collapse. Recommended solutions include a combination of MSR replenishment and technological CDRs or a phased reduction of the LRF post-2035.

The report identifies peatland protection as an 'emergency brake' climate solution due to the high carbon density of these ecosystems, which store approximately 600 Gt of carbon. It estimates that protecting one hectare of peatland avoids between 0.92 and 13.47 t CO‚-eq/ha/yr, with the highest impact in tropical and subtropical regions. The net cost is estimated at US$1.5/ha/yr, or $0.25/t CO‚-eq avoided. While approximately 22% of global peatlands are in protected areas (PAs), the report suggests an achievable protection range of 70–90% of remaining undrained peatlands, which could reduce emissions by 1.3–1.7 Gt CO‚-eq/yr. The analysis emphasizes the critical role of Indigenous peoples' lands, which contain an additional 186 Mha of peatlands, and advocates for secure land tenure and community-led governance to ensure permanence and avoid leakage.

The four lower Snake River dams cause an average additional water loss of approximately 30,000 acre-feet per year due to evaporation compared to free-flowing conditions. This loss is valued at roughly $110 million as a water right and is equivalent to the water needed to grow 8,000 acres of apples or supply the household needs of 240,000 people. Future projections (2025–2055) suggest these losses will persist or slightly increase, ranging from 30,100 to 32,800 acre-feet per year across eight global climate models.

The document analyzes the global distribution of agricultural methane emissions, highlighting that while low- and middle-income countries produce the most, high-income countries have higher per capita emissions due to consumption patterns. It proposes a transition toward climate-smart agriculture through technology, policy reform, and targeted finance, particularly for smallholder farmers in Africa, to meet global reduction targets by 2030.

The OCI+ tool reveals that global oil and gas resources vary by up to five times in life-cycle emissions intensity. The document emphasizes that supply-side emissions from production, refining, and transport can rival end-use consumption, making the identification of high-emitting assets critical for short-term climate action. It highlights methane reduction as the highest priority, noting that methane accounts for over half of operational emissions and advocating for the use of a 20-year global warming potential (GWP20) to accurately assess climate risks.

China is significantly leading global renewable energy deployment, with utility-scale wind and solar projects under construction totaling 339 GW—double the combined total of all other countries. While China is on track to meet its 2030 target of 1.2 billion kW of wind and solar capacity years ahead of schedule, it faces critical challenges regarding grid stability, reliance on coal for intermittency regulation, and high curtailment rates in northern and northwestern provinces.

The report details a record-breaking Q1 2024 for aligned GSS+ debt, with USD 272.7bn added. Green bonds dominated the market, while Europe remained the primary regional source. The report also highlights the growth of sovereign GSS+ issuance, the emergence of nuclear energy in green bond frameworks in North America, and the evolving alignment of sustainability-linked bonds (SLBs) with Climate Bonds' methodology.

Global coal capacity reached a record high of 2,130 GW in 2023, growing by 2% (48.4 GW), primarily driven by China. While new construction hit a nine-year low outside China, it reached an eight-year high within China. Only 15% of global operational capacity is under a phase-out commitment. In Latin America, operational capacity is declining, though some countries like Brazil and Mexico face challenges with decommissioning timelines and legislative extensions of plant lifespans.

The report finds a significant gap between net zero targets and actual fossil fuel phase-out commitments. While some progress is visible in corporate coal phase-outs and among European entities, the majority of analyzed countries and companies have not committed to ending fossil fuel activities on a timescale consistent with the Paris Agreement. National net zero targets cover 88% of global GHG emissions, but only 7% of those emissions are covered by at least one phase-out commitment.

The report finds that government-reported methane emissions from coal mines, totaling 30.5 million tonnes, may be significantly underestimated. Independent assessments suggest actual emissions could range from 38 to 67 million tonnes per year, which, when considering short-term warming impacts, could be comparable to the total annual CO2 emissions of the United States.

The report finds that while current national targets collectively aim for a doubling of renewable capacity by 2030, they often underestimate the actual pace of deployment. A global tripling to 11,000 GW is considered achievable if governments update targets to reflect recent growth and maintain a 17% annual increase in additions. The analysis identifies specific countries with high potential to increase ambition, such as Australia, Japan, South Korea, and the UAE, while noting that others like India and Saudi Arabia already have targets that aim for a tripling of their 2022 capacity.