Climate Action’s trifecta: Politics, Economics, and Nature Collide

At Ecosperity Conversations 2025, Singapore’s Ambassador for Climate Action delivered a compelling address, framing the global climate challenge through the lens of three powerful forces: politics, economics, and nature. The address painted a picture of a complex and evolving landscape, where progress is uneven and the urgency undeniable.

The ambassador began by posing a crucial question: which recent advancement—the US withdrawal from the Paris Agreement,the plummeting cost of solar energy,or the record-breaking global temperature exceeding 1.5 degrees Celsius in 2024—holds the most significance for the future of climate action? This question promptly established the central theme: the multifaceted nature of the climate crisis.

The Political Landscape: A Mixed Bag

Recent political developments, especially in the United States, presented notable challenges. The ambassador noted that the US is withdrawing from the Paris Agreement for a second time, with President Donald Trump declaring a “national energy emergency” and promising to boost oil and gas production. Further,a freeze on funds from the Inflation Reduction Act and the Infrastructure Investment and Jobs Act threatens billions of dollars in clean energy tax credits.

However,the picture isn’t entirely bleak. The ambassador pointed to positive developments at the state and city levels. California’s streamlined approval process for geothermal projects, such as, could accelerate geothermal energy deployment. Furthermore, the “America Is All In” coalition, comprising over 5,000 public sector, business, and community leaders, demonstrates a commitment to sub-national climate action. Even at the federal level, support for nuclear energy, including investment in small modular reactors, suggests a nuanced approach.

Could it be that the stronger drivers of energy policies in the US are security and affordability rather than a love for fossil fuels per se?

The ambassador also highlighted weakening political support for climate action in Europe, where environmental concerns have been overshadowed by the war in Ukraine and economic anxieties. A Eurobarometer poll showed a significant drop in the ranking of climate change as a public concern from second in 2019 to fifth in 2024. This shift was especially evident during the 2024 European elections. Indonesia’s questioning of its Paris Agreement compliance in light of the US withdrawal further underscores the global impact of political shifts.

We cannot rule out some countries lowering their climate ambitions as of the position taken by the US.

Despite these setbacks,some countries have maintained aspiring decarbonization targets. The UK committed to reducing emissions by at least 81% by 2035,Switzerland by at least 65%,and Brazil by 59-67% below 2005 levels by 2035. While the EU’s 2035 targets were not yet submitted, it’s on track to meet its ambitious 2030 goal.

Economic Forces: The Rise of Renewables

The economic landscape, according to the ambassador, is characterized by a significant decline in renewable energy costs. Between 2022 and 2023, the levelised cost of electricity for utility-scale solar projects fell by 12%, with solar panel costs plunging by 30% over two years. Wind and hydropower costs also decreased, and battery storage costs fell by nearly 90% between 2010 and 2023. This cost reduction is crucial for overcoming the intermittency of renewable energy.

In 2010, the average levelised cost of electricity of solar photovoltaic was 400% more expensive than fossil fuel-fired alternatives. Today,it is 50% cheaper.

The ambassador emphasized that renewable energy is now cheaper than fossil fuels in many instances, driving investment decisions away from fossil fuels. Two-thirds of global energy investment in 2024 whent to clean energy technologies and infrastructure. This shift is fueling the electrification of the economy, with surging electric vehicle sales and increasing electrification of light industries.

Though, not all decarbonization pathways are experiencing the same cost reductions.The production of low-carbon hydrogen faces challenges, with increased equipment and financial costs. Carbon capture and storage, enduring aviation fuels, and marine fuels remain expensive and face supply shortages, posing a significant hurdle to achieving decarbonization goals.

Nature’s Unrelenting Pressure

The ambassador stressed that the most significant driver of climate action is nature itself. The relentless rise in global temperatures, with the ten hottest years on record all occurring in the last decade, is leading to more frequent and intense extreme weather events. But the most concerning changes are happening less visibly: in glaciers, the Arctic, and the oceans.

Glaciers are melting at an accelerated pace, threatening both floods and water shortages. The accelerated retreat of glaciers in the Himalayas and Tibetan Plateau is already impacting major rivers,undermining water security for hundreds of millions of people. The Arctic is warming four times faster than the global average.

Unraveling Climate Action’s Trifecta: How Politics, economics, and Nature Stir Global Change

Editor: Climate action’s future seems more elaborate than ever. Could you illuminate the most critical factors influencing our planet’s climate trajectory today?

Expert: Certainly! Climate action is increasingly shaped by a dynamic trifecta: politics, economics, and nature itself. These factors don’t operate in isolation but rather weave an intricate tapestry influencing global climate policies and strategies. Each element holds profound implications for our attempts to address climate change.

Political Fissures and Fortitude

Editor: politics often seem to oscillate between progress and setback in the climate arena. How do recent political developments inform climate action’s future?

Expert: Political landscapes are anything but stable.take the US,as a notable example,where the repeated withdrawal from the Paris Agreement has raised concerns globally. This withdrawal illustrates a significant shift in focus from international collaboration to national agenda-setting and possibly increased fossil fuel reliance. Though, states like California counterbalance this with innovative measures to drive forward clean energy initiatives independently of federal actions. Such local efforts underscore a broader trend: sub-national leaders are taking a more pivotal role in climate action.

Moreover, coalitions like “America Is All In” highlight a patchwork of commitment across the US, demonstrating how local and business leaders are stepping up when federal support falters. Globally, these political dynamics create ripple effects, influencing the climate ambitions of other nations. While Indonesia and the EU face their unique political landscapes, key priorities often pivot around security and economic stability, not solely environmental concerns.

Economic Evolution: The Surge of Renewables

Editor: It’s captivating how economic factors are driving the renewable energy revolution. Can you delve into these economic forces?

Expert: Absolutely. The economic landscape has dramatically shifted in the past decade, primarily due to precipitous drops in renewable energy costs.From 2022 to 2023 alone, solar energy saw a 12% reduction in the levelized cost of electricity, with panel prices plummeting by 30%. This is a significant milestone, considering solar power is now 50% cheaper than fossil fuel alternatives. This cost decline is ushering in widespread electrification across sectors and motivating investment in clean technologies,which received a ample share of global energy investments in 2024.

yet,it’s critical to recognize that not all paths to decarbonization harbor the same economic promise. Technologies like low-carbon hydrogen production face daunting costs, and sustainable aviation fuels and marine fuels encounter supply shortages. These economic hurdles could impede reaching aspiring decarbonization targets.

Nature’s Indomitable Influence

Editor: How does nature itself propel the urgency for climate action?

Expert: Nature hasn’t just influenced climate change—it’s the paramount driver urging immediate action. The relentless rise in global temperatures, with recent years being the hottest on record, has brought about more frequent and intense extreme weather events. Though, it’s the subtle shifts in glaciers, the Arctic, and our oceans that hold particularly dire implications. As an example, the accelerated glacier retreat in the Himalayas is compromising water security for hundreds of millions living downstream.

The ongoing warming of the Arctic at four times the global average rate isn’t merely a statistic—it’s forging new realities in terms of melting ice and rising sea levels. These natural dynamics impose undeniable pressure on humanity to recalibrate its trajectory towards achieving sustainable and equitable climate solutions.

Looking Ahead: Key Considerations and Actions

Editor: With such profound complexities, what are some key takeaways or recommendations for readers to consider?

Expert: Frist, it’s vital to recognize the interconnectivity of political, economic, and natural factors in the climate arena. Active participation at local and regional levels can catalyze critical change, even amidst national inertia. Also, investing and prioritizing the most economically viable renewable technologies is essential for forward progress, though mindful of the varied costs associated with different decarbonization strategies.

Additionally, understanding nature’s lead in this global dialogue compels us to act more decisively. We must support policies and innovations that address both visible and invisible environmental changes, ensuring that future generations inherit a planet where climate stability is a reality, not an aspiration.

Editor: Your insights certainly frame the discourse around climate action’s multifaceted realities. What would you suggest readers do to further engage or contribute to this ongoing dialogue?

Expert: Readers can make meaningful contributions by advocating for robust climate policies at every level of government, supporting businesses that prioritize sustainability, and staying informed about the environmental and political developments that affect our climate. Social media is also a powerful platform for amplifying these messages and encouraging broader societal commitment to climate action. By voicing support for climate-conscious initiatives, individuals collectively push for a future where the intersection of politics, economics, and nature leads to extensive, sustainable solutions.

This dynamic dialogue underscores the critical nature of sustained engagement and innovation—principles that promise not just to reshape policy but to redefine our collective environmental legacy.