‘All systems flashing red’ as no sector is on track to meet climate goals

None of the 45 indicators used by the State of Climate Action report to measure progress towards climate goals are on track, meaning the gap to limit the global temperature rise to 1.5°C is widening, despite some positive signals.

In the first assessment of climate progress since 2023, the State of Climate Action (SoCA) report warns that the pace and scale of advancements are “alarmingly inadequate”. Out of 45 indicators, six are off track but moving in the right direction, 29 are well off track, moving in the right direction but far too slowly, 5 are headed in the wrong direction entirely, and 5 lack sufficient data to even assess progress.

“All systems are flashing red,” said Clea Schumer, Research Associate at WRI and co-lead author of the report. “A decade of delay has dangerously narrowed the path to 1.5°C. Steady progress isn’t enough anymore – every year we fail to speed up, the gap widens and the climb gets steeper. There’s simply no time left for hesitation or half measures.”

Electric vehicle adoption downgraded to ‘off track’

Electric vehicles were the bright spot of the last SoCA report – the only indicator estimated to be on track. But while the sector is still growing rapidly (EVs made up a record 22% of global passenger car sales in 2024, up from 4.4% in 2020), growth has slowed in major markets such as Europe and the US.

As a result, this indicator has been downgraded to ‘off track’ in this year’s report. “The EV revolution remains one of the most impressive bright spots for climate action, but even then, it's just not enough to get on track, given the scale of the challenge,” commented Schumer.

However, a more positive story can be observed in private climate finance, which rose so sharply that this year’s report upgraded progress from ‘well off track’ to ‘off track’. Private climate finance increased from roughly US$870 billion in 2022 to a record US$1.3 trillion in 2023, with individuals, businesses and investors, particularly in China and Western Europe, driving much of the gains.

This progress is partly offset by one of the world’s more important indicators, which has not bulged over multiple reports: public finance for fossil fuels has increased by an average of US$75 billion per year since 2014, reaching more than US$1.5 trillion in 2023.

Deforestation and coal phase-out are stalling

Similarly, deforestation is on the rise again after earlier declines, and coal as a share of electricity generation has fallen only slightly, despite the impressive increase in renewables’ share and the fact that clean energy investment exceeded fossil fuel investment for the second consecutive year in 2024.

To get back on track towards 2030 climate goals, report authors Systems Change Lab, Bezos Earth Fund, Climate Analytics, ClimateWorks Foundation, Climate High-Level Champions, and World Resources Institute estimate that the world must:

• Phase out coal more than 10 times faster 

• Reduce deforestation nine times faster. 

• Expand rapid transit networks five times faster 

• Reduce beef and lamb consumption in high-consuming regions five times faster 

• Scale technological carbon removal more than 10 times faster 

• And increase climate finance by nearly US$1 trillion annually — equivalent to roughly two-thirds of public fossil fuel finance in 2023.

“We’re not just falling behind — we’re effectively flunking the most critical subjects,” said Sophie Boehm, Senior Research Associate at World Resources Institute and co-lead author of the report. “As this global report card shows, we have barely moved the needle on phasing out coal or halting deforestation, while public finance still props up fossil fuels. These actions aren’t optional; they’re the bare minimum needed to combat the climate crisis and protect humanity.”