Global efforts to tackle climate change are advancing at a pace that remains insufficient to achieve internationally established environmental targets, according to a new assessment by economists at German insurance company Allianz.

The study warns that, without a significant acceleration in emissions reduction and clean-energy investment, the world could take considerably longer than expected to achieve climate neutrality.

According to the Green Transition Tracker 2026, the global economy is currently on course to reach climate neutrality in 2064, approximately 14 years later than the widely recognised 2050 objective.

The findings highlight the growing gap between international climate commitments and the actual progress being made by governments, businesses and energy producers.

European Union Maintains Its Position in Climate Action

The European Union continues to make progress in reducing emissions, although the pace of its green transition has slowed.

The report estimates that the EU could achieve climate neutrality by 2057, while Germany is projected to reach the same objective in 2051.

Despite these relatively stronger projections, the findings suggest that even major economies with established environmental policies are facing challenges in completing their transitions within the desired timeframe.

The economists also warned that the goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels is becoming increasingly difficult to achieve.

Most Economies Show Progress Despite Political Challenges

The assessment examined 65 economies and found that 56 had made progress towards their climate objectives.

This indicates that renewable energy investment, environmental regulations and technological improvements are continuing to influence national climate strategies.

However, political uncertainty and changing government priorities remain important obstacles.

The report highlighted political resistance in countries such as the United States as one of the factors complicating international efforts to accelerate climate protection.

The findings demonstrate that progress in individual countries does not automatically translate into a sufficiently rapid global reduction in greenhouse gas emissions.

Renewable Energy Overtakes Coal in Global Electricity Generation

One of the most encouraging developments identified in the report is the growing contribution of renewable energy to worldwide electricity production.

Renewable sources accounted for 33.5 percent of global electricity generation in 2025, exceeding coal’s share for the first time.

This development represents an important milestone in the transformation of the global energy sector.

Solar and wind power have become increasingly important alternatives to conventional fossil-fuel-based electricity production, supported by technological improvements and expanding investment.

The increasing availability of renewable energy is also helping countries reduce their dependence on imported fossil fuels.

Higher Energy Prices Encourage Clean Technology Adoption

Geopolitical tensions and fluctuations in international oil and gas markets are creating additional pressure on energy consumers.

According to the Allianz assessment, rising fossil fuel prices are helping increase demand for electric vehicles and solar energy systems.

Consumers and businesses are increasingly exploring alternatives that can reduce their exposure to changing fuel costs.

The economists also estimate that global carbon dioxide emissions from fossil fuels could decline slightly by 0.5 percent during the current year.

However, this potential reduction remains modest compared with the scale of emissions cuts required to achieve international climate objectives.

A Faster Green Transition Remains Essential

The report highlights the need for stronger international cooperation, greater investment in renewable energy and more consistent climate policies.

Governments will need to address challenges involving energy infrastructure, electricity storage, industrial emissions and the financial requirements of transitioning away from fossil fuels.

Developing economies may face additional difficulties because of the high investment costs associated with modern energy systems and climate-friendly infrastructure.

At the same time, advanced economies face pressure to accelerate their existing commitments and support wider international efforts.

Global Climate Goals Face a Critical Test

The findings underline the growing urgency of accelerating the global transition towards cleaner energy sources.

Although renewable energy is expanding and most assessed economies are making some progress, the overall pace remains insufficient to meet the world’s climate ambitions.

The challenge for governments is no longer simply to announce environmental targets but to translate those commitments into measurable reductions in emissions.

The coming years will be crucial in determining whether investment, technological innovation and international cooperation can significantly narrow the gap between current progress and the climate objectives established for the middle of the century.