Dispatches in Decarbonization: This Year’s Predictions for the Net Zero Movement
This article first appeared in Mahesh Ramanujam’s monthly LinkedIn newsletter, Dispatches in Decarbonization, on January 30, 2025. Subscribe on LinkedIn to receive these updates.
Drawing from the expertise present in the ecosystem of advisors, partners, and industry experts, as well as my years of meetings with green building leaders from all over the world, I wanted to compile and share my understanding of what 2025 will have in store for the net zero movement with all of you. Please see them below — and let me know what’s missing!
Net Zero Predictions for 2025
1. Acceleration of a Zero Emissions Economy
The transition to a zero emissions economy will be at the heart of every upcoming economic transformation. This includes significant investments in green infrastructure, renewable energy projects, and sustainable urban planning. For instance, ahead of India’s Union Budget 2025, I shared my predictions with the Economic Times, underscoring the importance of incentivizing green certifications, simplifying certification processes, educating developers on the long-term benefits of sustainable infrastructure, and balancing growth across Tier 2 and 3 cities, as well as stressing the need for greater budget allocations toward smart and green technologies to drive India’s 2070 net zero vision.
2. Clear Roadmap for Net Zero Targets
Countries must establish clear roadmaps with specific milestones and penalties to achieve net zero targets. This approach will help accelerate progress and ensure accountability. Programs like GNFZ’s net zero certifications can help define an actionable pathway toward achieving these targets.
3. Focus on Action Over Aspiration: While long-term emissions reduction targets are admirable and often required, achievement in 2025 will be marked by those who begin immediate implementation of tangible efforts to make improvements today. For the health of businesses, buildings, societies, and the people who live and breathe in them each day, it will take urgent individual leadership from those willing to take the critical first steps.
4. Cities and States Continuing to Step Up and Lead
Global city and state leadership will be essential to driving sustainability, especially with shifting geopolitics, such as in the U.S. which faces potential federal policy changes from the new administration. Local policies like BPS are proving effective in decarbonizing buildings: In New York City, energy laws like Local Law 97 (LL97) have spurred swift compliance from commercial property owners, exceeding expectations. Equally exciting is the rise in smart cities on the international stage, Shenzhen, for instance, is leveraging cutting-edge digital infrastructure and sustainable urban strategies to tackle population density, resource constraints and environmental concerns as Johan Tellvik writes. I’m looking forward to talking about these latest emerging technologies that cities are leveraging in their pursuit of zero emissions at the LEAP 2025 Smart Cities stage in just a couple weeks.
5. Increased Awareness and Quality
There will be a greater emphasis on raising awareness about what net zero means and improving the quality of sustainable practices across industries. This includes showcasing successful case studies to inspire and transform markets.
6. Policy and Regulatory Support
Stronger policies and regulations will be implemented to support the transition to a net zero economy. This includes defining minimum actions required for industries, standardizing data collection processes, and setting minimum thresholds for environmental compliance.
7. Rising Investor and Tenant Demand for Low-Carbon Spaces
Right now only 0.023% of the world’s buildings are net zero, and research suggests we’ll see a 29% compound annual growth in that number through 2027. While that may seem promising, we’re also facing a 70% shortfall in low-carbon spaces. This demand cannot be created overnight – real estate leaders need to start transitioning their portfolios and assets to net zero now. As you can see, there is a massive differentiator opportunity for property owners and developers who can supply this demand and transition assets to net zero — reach out to GNFZ for guidance.
8. Private Sector Involvement
Now more than ever, the private sector will be crucial in addressing climate change and achieving net zero targets. Businesses must invest in sustainable practices and contribute to decarbonization efforts.
9. Net Zero Certification
Businesses and organizations will focus more on net zero certification. These certifications, such as GNFZ’s certifications for buildings, portfolios and businesses, will serve as benchmarks for sustainability and encourage companies to adopt best practices for reducing their carbon footprint.
These predictions highlight the critical steps to address climate change and achieve a sustainable future. What would you add?