Renewable energy is making rapid progress in almost every high-emitting country. But, many countries still persist in extending the fossil fuels business model. This is particularly true for gas, says the Climate Change Performance Index (CCPI 2025).
The findings show a blend of optimism and setbacks. Over the past five years, 61 of the 64 countries increased renewable energy use. Nonetheless, emission trends in 29 nations continue to be rated low or very low.
The annual index, compiled by Germanwatch, New Climate Institute, and Climate Action Network International, evaluates 63 countries. It tracks emissions, renewable energy use, and climate policies, spotlighting global leaders and laggards.
The Climate Change Performance Index (CCPI) is an instrument to enable transparency in national and international climate politics. The CCPI uses a standardized framework to compare the climate performance of 63 countries and the EU. They together account for over 90% of global greenhouse gas emissions. The climate mitigation performance is assessed in four categories: GHG Emissions, Renewable Energy, Energy Use and Climate Policy.
TOP RANKS REMAIN EMPTY
No country claimed the top three CCPI spots this year. To meet Paris Agreement goals, nations must accelerate climate action. Denmark secured 4th place, retaining its status as the highest-performing country. It received the only high rating for climate policy but fell short of an overall “very high” rating.
The Netherlands ranked 5th, benefiting from its climate policies. Yet, concerns loom due to its new government’s approach to environmental issues.
The United Kingdom jumped to 6th place. A coal phase-out and a pledge against new fossil fuel licenses played a major role in this improvement.
FOSSIL FUEL RELIANCE: A PERSISTENT CHALLENGE
While some nations make strides, others lag behind. Argentina dropped to 59th place, a sharp decline attributed to political shifts. Its new president denies human-made climate change, countering scientific evidence.
The bottom four performers—Iran, Saudi Arabia, the UAE, and Russia—are among the world’s largest oil and gas producers. Their renewable energy share remains under 3%, with no visible plans to transition away from fossil fuels.
RENEWABLES ON THE RISE
Jan Burck of Germanwatch, co-author of the CCPI, noted the growing adoption of renewable energy: “Large parts of the world recognize renewable as a cost-effective and reliable energy source. The electricity sector leads this trend, with mobility and industry following.”
Burck highlighted progress in energy storage technologies, which complement the electrification of homes, transportation, and industry. Yet, he warned of continued resistance from the fossil fuel lobby.
URGENCY FOR EMISSION REDUCTIONS
Prof. Niklas Höhne of NewClimate Institute emphasized the critical moment facing global emissions: “We’re at a turning point. Global emissions will peak soon, but drastic reductions must follow to avoid worsening climate impacts.”
Time is running out, Höhne cautioned, and immediate action is essential to achieve an emissions turnaround.
THE PATH AHEAD
The CCPI 2025 reflects a world grappling with its energy future. Renewable energy offers a sustainable, cost-effective solution. Yet, resistance from entrenched fossil fuel interests persists.
Countries like Denmark and the UK showcase the potential for progress when political will aligns with environmental goals. Meanwhile, the stagnation in nations heavily reliant on fossil fuels underscores the challenges ahead.
The transition to renewable energy requires urgent action, bold policies, and global cooperation. As the world edges closer to a tipping point, the time to act is now.
