ESG Legal Outlook 2025: Navigating Key Global Themes
Key Ideas
- 2025 will focus on practical ESG implementation amidst a flurry of global ESG policy and regulation developments.
- Asia is experiencing significant growth in offshore wind energy, low carbon hydrogen, and other sustainable solutions despite economic challenges.
- The year ahead will see continued emphasis on transition plans, energy transition, sustainable finance, and greenwashing prevention.
- Governments in Asia face the challenge of balancing clean energy goals, economic growth, and energy security amidst the push to phase out coal-fired power.
The ESG Legal Outlook 2025 report forecasts a year focused on the practical implementation of ESG regulations globally, including Asia. Despite the rapid pace of ESG developments, 2025 is expected to bring a moment of reflection and recalibration in response to concerns about competitiveness and energy costs. The report highlights key themes for Asia, such as the growth of offshore wind energy, the increasing focus on low carbon hydrogen, and the exploration of carbon capture utilisation and storage (CCUS) in countries like Malaysia and Indonesia. Investments in clean energy technologies like battery storage, EV charging, and energy efficiency will continue, with a particular emphasis on addressing challenges in hard-to-abate sectors. Transition finance and plans are also gaining traction in Asia, aiming to facilitate the scaling of the transition finance market. While there is a slowdown in the pace of change for 2025, the region will see ongoing developments in sustainable finance, greenwashing prevention, and energy transition. Governments in Asia face the complex task of achieving clean energy goals, phasing out coal-fired power, and ensuring energy security while supporting economic growth.