Energy in Demand News, July 27-28, 2025

Although it’s summer in Europe, the pace of ecological and climate news has not slowed. Recent developments from IEA are concerning, and the hope is that the commitments from major countries continue towards contributing meaningfully to a sustainable energy future. There’s a thought-provoking study from SciencesPo shedding light on the EU taxonomy and its implications for energy efficiency investments. This week’s news brings illuminating perspectives on our transition towards zero carbon energy.

A recent newsletter unveils insights from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The NGFS’s new modeling indicates that the impact of climate change could have a significantly larger detrimental effect on the global economy than previous predictions. The “economic drag” is anticipated to result in up to a 15% decline in world GDP by 2050 if governments only implement currently announced policies. Furthermore, the potential impacts of climate shocks could reduce annual global GDP by 2.5%, affecting trade flows and increasing defaults in capital-heavy industries.

This week, the NGFS issued another report aimed at aiding financial institutions in developing comprehensive plans to adapt to the climate crisis. While many institutions have focused on the risks associated with the energy transition, such as lending to obsolete coal companies, the new publication emphasizes the importance of addressing physical threats from extreme weather events as well. It is noteworthy that a major economic authority withdrew from this initiative, citing its increasingly broadened scope beyond their mandate. The NGFS currently includes 147 member institutions across over 90 countries.

The final comments on the NGFS report emphasize that while focusing on climate adaptation is crucial, it should not detract from emissions-reduction efforts. Effective communication underlines that the economic damages from climate change will be minimized with a proactive low-carbon transition, despite the costs of such a transition. Awareness of the costs of unchecked climate change could inspire more decisive action by central bankers to combat it.

The European Environment Agency has revealed the winners of the “Environment&Me 2025” photo competition, offering an artistic glimpse into the environmental issues and solutions. Similarly, don’t miss attending the Zero Carbon Industry event in Rome in February 2026. Prepare your submissions by September 15th.

As we plan for travel in the upcoming weeks, there’s wisdom to be found in the words of historical figures. Haile Selassie, the Emperor of Ethiopia from 1930 to 1974, taught that, “Throughout history, it has been the inaction of those who could have acted, the indifference of those who should have known better, the silence of the voice of justice when it mattered most, that has made it possible for evil to triumph.” A timely reminder to act in the face of climate adversity.

We invite feedback and thoughts on this week’s discussions about the journey towards zero-carbon energy. Engage with us, share the insights with your circles, and let’s advance the dialogue on creating a sustainable future.