Dr. Arvind Kumar*
The year 2024 marked a transformative period in the realms of environment, energy, water management, and international relations. With nations grappling with climate change, resource scarcity, and geopolitical complexities, the year saw significant advancements, challenges, and the laying of groundwork for future initiatives. In his new year message Antonio Guterres, Secretary General, United Nations mentioned that, “this is climate breakdown in real time. We must exit this road to ruin and we have no time to lose. In 2025, countries must put the world on a safer path by dramatically slashing emissions, and supporting the transition to a renewable future. It is essential — and it is possible.”
As 2025 dawns, the world stands at a crucial juncture, with promising prospects shaped by the achievements and lessons of the preceding year 2024 was notable for a global shift toward nature-based solutions and enhanced climate commitments. International relations in 2024 were profoundly shaped by climate diplomacy and energy security concerns. The COP29 summit, hosted by Azerbaijaan, marked a turning point in climate negotiations. Developing nations secured commitments for enhanced climate finance, particularly for adaptation and loss-and-damage mechanisms. The establishment of a global loss-and-damage fund, though fraught with debates over contributions and governance, signalled a step forward in addressing the inequities of climate impacts.
Geopolitical tensions around energy persisted, fuelled by disruptions in fossil fuel markets and the strategic realignments of major powers. The ongoing energy transition, while necessary, exposed vulnerabilities in energy security, with countries racing to diversify their energy portfolios. The European Union’s Green Deal took on greater significance as member states intensified efforts to reduce dependence on imported fossil fuels. In contrast, oil-exporting nations explored strategies to remain relevant in a decarbonizing world, with Saudi Arabia’s Vision 2030 focusing on green hydrogen and other clean technologies.Global solar capacity surged, driven by advances in photovoltaic efficiency and reduced production costs. China retained its leadership in renewable energy manufacturing, while countries like India and the United States scaled up installations. India’s success with ultra-low-cost solar power plants underscored the potential for renewable energy to transform energy access in developing economies.
Turning Points and Transitions
The UN’s Decade on Ecosystem Restoration gained momentum as countries redoubled efforts to restore degraded landscapes, particularly in regions heavily impacted by deforestation, desertification, and urban expansion. Brazil, for instance, reported significant progress in curbing deforestation in the Amazon through enhanced satellite monitoring and stricter enforcement policies. Similarly, India expanded its afforestation programs, integrating them with rural livelihoods and carbon credit mechanisms. These efforts reflected a broader recognition of the interdependence between ecosystem health and human well-being.The accelerated deployment of renewable energy technologies was a hallmark of 2024. Nature-based solutions will gain significant prominence in 2025, with businesses ramping up investments in ecosystem restoration and conservation projects.Annual investments in NbS are projected to reach US$384bn by 2025, more than doubling the current US$154bn.This surge is driven by the urgent need to address climate change, biodiversity loss and land degradation. Private sector involvement is expected to increase dramatically over the coming years, rising from the current 17% of total NbS investments.Companies will have to integrate NbS into their operations, focusing on sustainable supply chains and offsetting unavoidable impacts through high-integrity nature markets.
Green hydrogen emerged as a critical element of the energy transition. Governments and private stakeholders increased investments in green hydrogen production and infrastructure, recognizing its potential to decarbonize hard-to-abate sectors like steel, cement, and heavy transport. Europe led the charge, with significant funding allocated to electrolyzer installations and hydrogen corridors. In India, the National Hydrogen Mission achieved key milestones, including operationalizing pilot projects that integrated green hydrogen into industrial processes. However, scaling up remained a challenge, with stakeholders identifying the need for policy harmonization and robust supply chains.
The water management often overlooked in broader environmental discourse, saw heightened attention in 2024 due to increasing water stress across several regions. Prolonged droughts in parts of Africa and Asia highlighted the urgency of sustainable water use. Advanced irrigation techniques, such as drip and sprinkler systems, gained traction, particularly in agriculture-dependent economies. Innovations in desalination and wastewater recycling offered promising solutions to urban water shortages. The Middle East, for example, invested heavily in solar-powered desalination plants, providing a model for addressing water scarcity without exacerbating energy consumption.
International cooperation on transboundary water resources also advanced, with new agreements brokered to manage shared rivers and aquifers. The revival of the Mekong River Commission and the resolution of disputes along the Nile exemplified the potential for diplomacy to address shared water challenges. Yet, the year underscored persistent vulnerabilities, with water conflicts intensifying in some areas, underscoring the need for stronger institutional frameworks.The nexus between environment, energy, and international relations was epitomized by the Arctic. The rapid melting of polar ice spurred both environmental alarm and geopolitical competition. Nations bordering the Arctic ramped up exploratory missions, vying for access to untapped resources and strategic shipping routes. Amid these tensions, multilateral discussions emphasized the importance of safeguarding the Arctic’s fragile ecosystem, though concrete agreements remained elusive.
2025 will be shaped by the advances and unresolved challenges of 2024. On the environmental front, the focus is expected to intensify on implementing commitments made during COP29. Countries are likely to prioritize carbon pricing mechanisms, reforestation initiatives, and sustainable urban development. Innovations in biodiversity conservation, such as the use of AI for wildlife monitoring and habitat restoration, are poised to play a greater role. However, the effectiveness of these efforts will hinge on sustained political will and the mobilization of financial resources. The new year promises continued growth in renewables, with offshore wind and advanced battery technologies gaining prominence. The global push for energy storage solutions will likely address intermittency issues in renewable energy systems. Green hydrogen is expected to enter a more mature phase, with larger-scale projects coming online and international trade routes beginning to take shape. The challenge lies in ensuring equitable access to these technologies, particularly for low-income countries that risk being left behind in the energy transition.
Environmental metrics, particularly carbon emissions reduction, have seen the fastest growth as companies are increasingly tying these metrics to both short-term and long-term incentive plans.This shift reflects a growing commitment to sustainability, diversity and ethical governance, as well as a response to investor expectations and regulatory pressures.Water management is anticipated to remain a critical area, with governments and international organizations scaling up investments in water infrastructure. Integrated water resource management, combining traditional practices with modern technology, will be vital for addressing the dual challenges of scarcity and excess. Climate-resilient infrastructure, such as flood barriers and drought-resistant crops, is expected to feature prominently in adaptation strategies.International relations in the coming year will likely be shaped by the interplay of cooperation and competition. Climate diplomacy is set to take center stage, with the global community working toward the implementation of the Paris Agreement’s mid-term targets. Regional alliances, such as the African Union’s Green Recovery Initiative, are expected to gain traction, showcasing the potential of South-South cooperation in addressing climate challenges. However, geopolitical tensions surrounding energy and resource access are unlikely to abate. The Arctic is expected to remain a flashpoint, with intensified negotiations over governance and resource rights. The role of emerging powers, including India and Brazil, will be crucial in steering global discussions toward equitable and sustainable solutions.
Way Ahead
2024 was a year of significant strides and sobering lessons in addressing some of the most pressing global challenges. The developments in environment, energy, water, and international relations underscored the interconnectedness of these domains and the necessity of integrated approaches. In the coming years, focus has to be on reducing the lifecycle impacts of products and services, while prioritising consumption reduction.Systemic change, however, requires collective action. Achieving meaningful progress in minimising e-waste and advancing circular economy practices will depend on collaboration across the entire value chain. As the world transitions into 2025, the collective resolve of nations, institutions, and communities will determine the trajectory of these efforts. While challenges persist, the progress made offers a foundation for optimism and a reminder of the transformative power of collaboration and innovation.
*Editor Focus Global Reporter
