The World Is Doubling Down on Climate Business—With Or Without the U.S.

Greetings from London. A week of interviews, events, and meetings—both on the record and behind closed doors—at the city’s Climate Action Week has left me with many reflections, but one stands out: the climate work goes on, but the U.S. is no longer at the center of the universe.

This reality is evident almost just from the scale. The organizers tout 700 events and 45,000 participants spread across the sprawling London metropolis. This was the biggest London climate week yet, and the first time for many (myself included). The city has become a focal point for global climate action, as the U.S. has retreated from its traditional leadership role.

But it was also evident in the meat of the conversations. Investors talked about opportunities outside the U.S., particularly in Asia and Europe. Climate-focused executives waffled about how much of a presence they wanted to have at this year’s iteration of New York Climate Week, usually an important moment on the climate calendar each September. The absence of the U.S. has created a power vacuum, and other nations are eager to fill it.

British officials emphasized their ability to serve as a global hub for sustainable finance. “As investors look around the world and they look for places to put capital, I think we sit in a very good position because of what’s happening geopolitically,” says Chris Hayward, policy chairman of City of London, the historic center of London, now best known as a financial hub.

To get from event to event in London required dashing around the city in the quickest fashion: typically the tube subway system, consistently overheated given the unseasonably hot London temperatures. But the geographic center of the week was undeniably the City of London, the one square mile that hosts the country’s premier banking and financial institutions. There’s a reason for that: organizers in London see an economic opportunity in supporting the energy transition.

And that’s at the core of the global shift visible here in London. The companies that have traditionally been at the forefront of climate action—such as those involved in renewable energy, carbon capture, and sustainable infrastructure—are now looking to Europe and Asia for growth opportunities. The U.S. has become less predictable as a leader in climate policy, which has made other regions more attractive to investors.

Investors are particularly interested in Asia, where rapid economic growth is creating a surge in demand for clean energy and sustainable technologies. China, for instance, has become a major player in the global climate market, with ambitious plans to reduce its carbon emissions and invest in renewable energy. Europe, too, is seen as a key market, with the European Union setting ambitious climate targets and offering incentives for companies to transition to sustainable practices.

The shift in focus away from the U.S. is also reflected in the events themselves. While New York Climate Week remains a significant event, London’s Climate Action Week has become a major alternative. The city’s financial district, the City of London, is positioning itself as a global leader in sustainable finance, offering a platform for investors and companies to discuss the latest developments in the field.

The City of London’s role in sustainable finance is not just about climate action; it’s also about economic opportunity. The city has long been a global financial hub, and now it’s looking to lead the transition to a low-carbon economy. The City is home to many of the world’s largest banks and financial institutions, and it’s seen as a natural choice for hosting climate-related events and discussions.

The global shift towards climate business is not just about London or Europe. It’s a broader trend, with countries around the world recognizing the importance of climate action and the economic opportunities it presents. The U.S. may no longer be at the center of the climate universe, but the world is doubling down on climate business—with or without the U.S.

In conclusion, the climate work goes on, but the U.S. is no longer the central player. The global community is rallying behind climate action, with a particular focus on Europe and Asia. London’s Climate Action Week is a testament to this shift, showcasing the city’s ambition to become a global hub for sustainable finance. The world is moving forward, and the U.S. must decide whether it wants to lead or lag behind.