As the annual gathering of the global elite in Davos wrapped up last week, climate policy emerged as perhaps the most contentious battlefield, with corporate leaders scrambling to defend their green investments against a rising tide of political resistance. The snow-covered Swiss Alps setting provided a stark backdrop for heated discussions about the future of environmental policies in an increasingly skeptical world.
“We’re not backing down,” declared Jean-Pascal Tricoire, CEO of Schneider Electric, during a panel I attended on sustainable infrastructure. “The economics of renewable energy simply make sense regardless of political winds.” His defiance reflected the general mood among executives who have staked billions on green technology and now face uncertainty about regulatory support.
The anxiety was palpable throughout the World Economic Forum. According to data from the International Energy Agency shared during the conference, global investment in clean energy reached $1.7 trillion in 2024, surpassing fossil fuel investment for the third consecutive year. Corporate leaders now worry this momentum could stall as political shifts threaten to unravel climate commitments.
Mary Barra, CEO of General Motors, pointed to consumer demand as a buffer against policy reversals. “Our EV strategy isn’t just about regulations,” she told attendees. “We’re responding to what customers increasingly want – vehicles that are both technologically advanced and environmentally responsible.” Her company has committed $35 billion to electric and autonomous vehicle development through 2025.
The defensive posture from business leaders comes amid mounting challenges to climate policies across Western democracies. Farmer protests in Europe, rising energy costs, and political backlash have created what JPMorgan Chase CEO Jamie Dimon characterized as a “perfect storm of resistance” to environmental regulations.
Financial data presented by Goldman Sachs at Davos revealed that companies with strong environmental performance outperformed market averages by 2.8% last year, continuing a multi-year trend. Yet this hasn’t translated to universal public support for green policies. A Pew Research study distributed among forum participants showed growing skepticism about climate initiatives when they’re perceived to raise consumer costs.
“We’re facing a communication failure,” admitted Frans Timmermans, former European Commission Executive Vice-President responsible for the European Green Deal. “The benefits of the transition aren’t being felt equally, while the costs are immediately visible.” His candid assessment resonated with many corporate leaders who acknowledged the need for more inclusive approaches.
The geopolitical dimension added another layer of tension. China’s growing dominance in clean energy supply chains was cited by numerous speakers as both an economic threat and a national security concern. “We can’t afford to cede this critical technology to competitors,” warned U.S. Commerce Secretary Gina Raimondo in a special address. “This isn’t just about climate – it’s about economic leadership in the 21st century.”
Having covered Davos for fifteen years, I’ve rarely seen such anxiety about policy continuity. In the forum’s corridors and during private dinners, conversations repeatedly turned to hedging strategies should climate regulations be rolled back in key markets. Several executives privately admitted they’re developing contingency plans while publicly maintaining confidence in the green transition.
The World Economic Forum itself tried to thread a difficult needle. Its Global Risks Report 2025, released just before the meeting, ranked climate inaction as the most severe long-term threat facing humanity, while acknowledging the immediate economic pressures driving resistance to environmental policies.
Oil executives, notably more visible this year than in recent forums, presented themselves as partners rather than obstacles in the energy transition. “We’re investing heavily in low-carbon solutions,” said Darren Woods, CEO of ExxonMobil, during a surprisingly well-attended session on energy security. “But the world still needs reliable, affordable energy during this transition. Ignoring that reality serves no one.”
The financial sector appears particularly caught in the crosscurrents. BlackRock CEO Larry Fink, whose firm manages over $10 trillion in assets, noticeably softened his climate rhetoric compared to previous years. “We’re focused on long-term value creation, not ideology,” he said. “Climate risk remains investment risk, but we respect that different regions will move at different speeds.”
Data from Bloomberg New Energy Finance shared during a finance panel revealed that green bond issuance fell 12% in 2024 compared to the previous year, the first such decline since the market’s inception. This cooling has rattled some sustainability advocates, though others view it as a necessary correction toward more rigorous standards.
What became clear through the week-long discussions is that corporate climate commitments are increasingly driven by business fundamentals rather than regulatory pressure or public relations. “The economics of renewables have fundamentally changed the equation,” explained Francesco Starace, former CEO of Enel. “Solar and wind are now the cheapest sources of electricity in most markets globally. That’s not going to change.”
As delegates departed on their private jets and chartered helicopters (a contradiction not lost on critics), the consensus seemed to be that the green transition will continue, albeit with more compromise and pragmatism than idealistic climate advocates might prefer. Whether that proves sufficient to address climate scientists’ increasingly urgent warnings remains the unanswered question hanging over the pristine Alpine air.
