Climate rules in context

The report examines global climate policy trends amid political uncertainty, including policy reversals in the United States and geopolitical pressures. Across 37 jurisdictions covering over 85% of emissions and 87% of GDP, policies continue to expand and strengthen. However, an “implementation gap” persists, with current policies aligned with pathways leading to approximately 2.8°C warming. While policy direction remains towards transition, progress is too slow to meet Paris Agreement targets, requiring accelerated implementation and stronger policy design.

Cross-cutting insights from the 2025 monitor

A total of 692 policies were identified, with over 20% adopted since 2024. Policy growth is strongest in disclosure, transition planning, and carbon crediting. Around three-quarters of new policies originate in Africa, Asia Pacific, Latin America, and the Middle East. While ambition, stringency, implementation, and comprehensiveness have improved since 2020, only 16 instances exceed 75% alignment with ambition benchmarks. Roughly half of policy domains remain off track, highlighting the need for faster policy strengthening and broader adoption.

Carbon crediting rules

The Monitor identifies 108 carbon crediting policies, with nearly half of jurisdictions covering the full value chain. Policies increasingly support climate finance and emissions reduction but face integrity concerns, including risks of greenwashing and low pricing signals. Three-quarters of jurisdictions use registries to prevent double counting, but fewer ensure additionality, permanence, or social safeguards. While policy stringency is relatively high, implementation remains limited due to recent adoption and technical complexity, indicating the need for stronger enforcement and clearer integrity standards.

Climate-related disclosure

A total of 297 disclosure policies are identified, with 52 adopted since 2024 across 25 jurisdictions. Most jurisdictions mandate emissions disclosure, and 32 require disclosure of climate risks. Disclosure is the most advanced domain, with over 60% alignment with ambition criteria. Adoption of ISSB standards is driving convergence. However, gaps remain in scenario analysis, transition plans, and offset disclosures. Implementation challenges persist, particularly where timelines are delayed. Enhanced verification, clearer methodologies, and stronger enforcement are needed to improve effectiveness.

Green prudential tools

The report identifies 117 prudential policies, with two-thirds introduced in the past five years. These focus on risk governance, stress testing, and transition planning within financial institutions. While over two-thirds of jurisdictions demonstrate ambition in stress testing, fewer integrate climate risks into capital requirements or lending practices. Stringency is increasing, with more mandatory rules emerging. However, implementation evidence remains limited due to recent adoption. Expanding coverage beyond banks and strengthening integration into financial decision-making are key priorities.

Methane abatement policies

A total of 108 methane policies across 32 jurisdictions are identified, with 20% adopted in 2024–2025. Most policies focus on fossil fuels, particularly oil and gas, while agricultural methane remains under-regulated despite being the largest source. Ambition and stringency are improving, with some jurisdictions setting time-bound targets and enforcing leak detection measures. However, implementation remains weak and monitoring capacity limited. Greater focus on agriculture, improved measurement standards, and stronger enforcement mechanisms are needed to enhance impact.

Public procurement

The report identifies 125 green public procurement policies across 35 jurisdictions. Governments are integrating climate criteria into procurement through product standards, life-cycle costing, and supplier evaluation. While comprehensiveness is high, ambition remains low, with limited progress since 2020. Policy approaches vary widely, reflecting experimentation rather than convergence. Strengthening measurable targets, standardising approaches, and embedding sustainability criteria more systematically are necessary to improve outcomes.

Transition planning

A total of 227 transition planning policies are identified, with 50 introduced since 2024. All jurisdictions have at least one mandatory rule, covering national, sectoral, and corporate levels. While most policies require disclosure and development of targets or plans, the quality of these plans varies, with limited detail on methodologies, verification, and accountability. Implementation is uneven, with stronger evidence at the corporate level. Strengthening plan quality, enforcement, and integration across sectors is essential for achieving effective transition pathways.