It has been 10 years since 195 countries signed the historic 2015 Paris Agreement. Much has been debated about the progress made since then. On one hand, few could have predicted the far-reaching and complex changes we have seen in energy policies, regulations and market dynamics. Equally, we’ve witnessed unprecedented shifts in how we use energy—in our homes, vehicles, commercial buildings and industrial processes.

Consumers today are more energy-conscious, adopting innovative and alternative energy solutions while preparing for more extreme weather events. Record breaking volumes of renewables, electric vehicles (EVs), batteries and other low-carbon technologies have been deployed over the last five years.

However, what we’ve accomplished so far has not been enough. We have failed to scale clean energy solutions at the speed required to materially alter the trajectory of climate change.

Have We Already Surpassed the 1.5°C Limit?

Two new studies published in Nature Climate Change this month indicate that we are on track to breach—or may already have exceeded—the 1.5°C warming threshold set in the Paris Agreement.

• A study by Alex Cannon (Environment and Climate Change Canada) concluded with 60-80% certainty that global temperatures have already surpassed the 1.5°C limit, based on 12 consecutive months exceeding this threshold. If warming continues for 18 months, it will become “virtually certain” that we have permanently breached the target.

• A separate study led by Emanuele Bevacqua (Hemholtz Center, Germany) found that 2024 could mark the start of a 20-year period in which global temperatures consistently exceed 1.5°C, based on long-term climate modeling.

Adding to these concerns, January 2025 was the hottest January ever recorded—despite the presence of La Niña, a climate pattern that typically exerts a cooling effect on global temperatures. Historically, La Niña years provide a temporary slowdown in global warming, but this time, the cooling influence was entirely overpowered by the planet’s continued warming trend.

This signals a major shift—natural climate variability is no longer enough to counteract human-driven warming.

Where Do We Go From Here?

Energy demands are shifting dramatically and will accelerate even further in the coming decade.  Growth in energy demand is increasingly location-specific, driven by:

• The hyperscaler data center boom, which is adding massive electricity loads in specific regions

• Electrification of transportation and industrial process, requiring grid expansion and reinforcement

• Building decarbonization efforts, pushing greater demand for heat pumps and energy efficiency solutions

• Extreme weather events, which are becoming more severe and unpredictable, increasing peak load volatility

To meet these challenges, the energy system must become more adaptive, flexible and responsive. The traditional way of planning and deploying energy infrastructure is no longer fit for purpose in today’s dynamic energy landscape.

Technology and innovation will be critical to maximizing the efficiency of existing energy sources and grid infrastructure while accelerating the scale-up of new clean energy solutions.

What Must Change to Achieve Real Decarbonization?

The lengthy process of developing and deploying large-scale clean energy assets continues to be a bottleneck. To accelerate progress, we must maximize the potential of behind-the-meter (BTM) resources and existing grid infrastructure in the near term.

No one technology, energy source or solution will solve the climate crisis—it will take a diverse, “all of the above” approach.

Here are 5 Key Steps We Must Take

• Reform permitting and interconnection processes to allow faster deployment of renewables, storage, and transmission upgrades.

• Unlock the full potential of demand-side flexibility—leveraging distributed energy resources (DERs), grid-edge technologies, and AI-driven demand response to smooth peak loads and reduce system strain.

• Improve market structures and price signals to better reflect real-time supply, demand, and grid congestion, ensuring that clean energy investments are aligned with where they are most needed.

• Strengthen grid resilience against extreme weather events, incorporating advanced forecasting, grid hardening investments, and improved energy storage solutions.

• Scale industrial decarbonization solutions—accelerating the adoption of low-carbon hydrogen, carbon capture, and process electrification in hard-to-abate sectors.

Final Thoughts: The Energy Transition Must Adapt to a New Climate Reality

The past decade has delivered remarkable progress in clean energy adoption, but we now face a new reality—one in which the climate is warming faster than expected, and energy demands are shifting in unpredictable ways.

The record-breaking temperatures in January 2024, despite La Niña, reinforce the urgency to build a more flexible, adaptive, and resilient energy system. If we continue operating under outdated regulatory, policy, and market structures, we will not meet the challenge ahead.

The question is no longer whether we need to transition—but how fast and effectively we can do it. The answer will determine not just the fate of our climate commitments, but the future stability of global energy markets and economies.

The time to act is now.