In 2025, the global renewable energy sector achieved significant milestones, despite the Trump administration’s rollback of support for clean energy in the U.S. Wind and solar power, for the first time, supplied more electricity than coal worldwide. Additionally, plug-in electric vehicles accounted for more than a quarter of new car sales, signaling a substantial shift in the transportation sector.
The dramatic drop in the price of clean energy over the past decade and a half has been a key driver of these achievements. Today, wind and solar power are cheaper than coal and natural gas, and they are increasingly complemented by affordable batteries, which have become 90 percent cheaper over the last decade. “Solar is no longer just cheap daytime electricity,” said Kostantsa Rangelova, an analyst at energy think tank Ember. “Solar is now anytime dispatchable electricity.”
The global surge in clean energy meant that, in the first half of 2024, renewables generated more power than coal for the first time. In China, the world’s biggest emitter, the rapid expansion of wind and solar power is leading to a decline in coal power. For the past year and a half, China’s emissions have been flat or falling. The electric vehicle market also hit a significant milestone in 2025, with plug-in cars accounting for more than a quarter of new car sales in the first 10 months of the year. In China alone, electric vehicles made up more than half of all new cars sold.
These developments have implications for the agriculture sector and investors. The shift towards renewable energy and electric vehicles could lead to a reduction in the demand for fossil fuels, which are widely used in agriculture for machinery, transportation, and the production of fertilizers. This could incentivize the agriculture sector to explore and adopt more sustainable and efficient practices, such as precision agriculture and renewable energy-powered operations.
For investors, the rapid growth of the renewable energy sector and the electric vehicle market presents significant opportunities. The decline in the cost of clean energy technologies and the increasing demand for electric vehicles could lead to substantial returns for those invested in these sectors. However, it also poses risks for investors in the fossil fuel industry, as the global shift towards clean energy could lead to a decline in the demand for and the value of fossil fuel assets.
Despite the progress, the world still faces challenges in its efforts to combat climate change. While the climate outlook has improved over the last decade, with the world now headed for around 2.8 degrees C of warming by the end of this century, this is still far from the Paris Agreement’s goal of limiting warming to well below 2 degrees C. Continued investment and innovation in clean energy technologies, as well as policy support, will be crucial in achieving this goal.