Environmental Risks a Mounting Concern Over Both the Short and Long-Term Time Horizons
Despite Trump’s questioning of the Biden Administration’s climate policies, environmental risks are solidifying their position as the greatest source of long-term concern, according to the Global Risks Report 2025, with extreme weather events a key concern for the year ahead.
For the first time in forty years, the US Presidential Inauguration was held indoors, as an Arctic blast caused temperatures to plummet, affecting more than half of the country’s population. Meanwhile, on the opposite coast, LA residents remained in shock after a series of catastrophic wildfires in Los Angeles—one of the most destructive in the state’s history—left communities destroyed and air quality at hazardous levels.
The increased frequency of such extreme weather events serves as a stark reminder of the existence and impact of climate change, and the urgent need for action.
Yet, the US - one of the world’s strongest economic powers and highest emitters - has now been removed from the Paris Agreement, as outlined in Trump’s inauguration speech. As such, within 24 hours, the government jolted from record investment in clean energy to halting critical loans and grants.
This dramatic shift in leadership highlights the fragile state of climate policy in the U.S., where political cycles continue to dictate the nation’s approach to one of the most pressing challenges of our time. However, the commitment of local leaders, cities, states, and the private sector, with the support of the public, will continue to drive progress towards a 1.5°C trajectory.
Yesterday, United Nations Secretary-General’s Special Envoy on Climate Ambition and Solutions, Michael R. Bloomberg, reaffirmed Bloomberg Philanthropies and other U.S. climate funders’ support, including covering the funding gap left by the United States to UN Climate Change (UNFCCC) and upholding the country’s reporting commitments.
Environmental risks - from long-term concern to urgent reality
Trump’s inauguration coincided with the opening of the World Economic Forum’s (WEF) Annual Meeting in Davos, Switzerland. Ahead of the meeting, the 20th Edition of WEF’s Global Risks Report revealed an “increasingly fractured global landscape, where escalating geopolitical, environmental, societal and technological challenges threaten stability and progress”.
“Global risk” is defined as the possibility of the occurrence of an event or condition that, if it occurs, would negatively impact a significant proportion of global GDP, population or natural resources. The report draws on the views of over 900 global risks experts, policy-makers and industry leaders surveyed in September and October 2024.
The report highlights that the burden of climate change is becoming increasingly recognised as a global risk. While only extreme weather events and pollution appear in the top ten risks over the short term, ranked second and fourth respectively, environmental risks dominate the longer-term outlook. Extreme weather events, biodiversity loss and ecosystem collapse, critical change to Earth systems and natural resources shortages populate the top four in the 10-year risk rankings.
Further, environmental risks have dramatically increased in ranking over the 10-year time horizon since the introduction of the Global Risks Report in 2006, and in recent years continuously rank highly as severe concerns.
Among all stakeholder groups—civil society, international organisations, academia, and government—the top three long-term global risks are extreme weather events, biodiversity loss and ecosystem collapse, and critical changes to Earth's systems.
Climate Action – Pushing Forward in 2025
2025 marks a pivotal moment for climate action, demanding a shift from pledges to tangible progress. With the onset of a new Trump-era, it is crucial to address the risks that climate change and biodiversity loss pose to global economic stability. At the same time, emphasising the opportunities presented by investing in mitigation and adaptation will be vital for solidifying effective policies and mobilising resources.
Climate Action brings together technology innovators, solution providers, and private sector investors alongside changemakers from local and national governments, NGOs, IGOs, and civil society. Through key touchpoints across the climate calendar and at COP, we drive momentum and foster collaborative action to address the climate crisis.
On April 29th, the Sustainable Investment Forum Europe taking place in Paris, in partnership with UNEP-FI, will offer a platform for finance stakeholders to navigate the challenges and opportunities of the sustainable finance market in Europe. This high-impact gathering will delve into key themes such as portfolio alignment, risk mitigation, impact investing, and transparent reporting, underscoring the urgency of embedding a just transition within net-zero strategies.
Midway through the year, the Climate Innovation Forum - a flagship event at London Climate Action Week - will return for its seventh year. On 25th June, London’s Guildhall will host some of the world’s most inspirational and influential climate leaders, facilitating multi-stakeholder collaboration for increased action and impact on the Road to COP30.
At these critical moments in the climate calendar, the Climate Action Coalition—launched in summer 2024— will break down silos across sectors and borders, accelerating progress towards 2030 climate goals. Through expert-driven taskforces, the Coalition fosters collaboration, facilitates knowledge exchange, and aligns climate policies, delivering actionable solutions through annual progress reports.
To find out more about engaging with the Sustainable Investment Forum Europe, visit here.
To find out more about engaging with the Climate Innovation Forum, visit here.
To find out more about how to get involved in the Climate Action Coalition: coalition@climateaction.org