Net Zero Momentum To Resume After US Leadership Shift

Despite growing policy headwinds and political changes, particularly in the United States, the majority of institutional investors worldwide are still cautiously optimistic about the long-term direction of climate investment. According to Robeco's fifth annual Global Climate Investing Survey 2025, 56% of investors believe that the net-zero trend will rebound after a shift in U.S. leadership, despite the fact that many are now holding off on climate-related investments due to the uncertainty caused by former president Donald Trump's fossil-fuel-forward policy agenda.

The climate investment environment, as seen in the survey of 300 institutional investors from throughout the world who manage a total of USD 31.2 trillion in assets, demonstrates both tenacity and changing priorities. Although many investors are dedicated to net-zero targets, it seems that the importance of climate change in overall investment strategies is declining worldwide. With Europe and the Asia-Pacific leading the way in their dedication to climate-aligned investment, this trend highlights a rising gap in regional commitments, while North America lags behind.

"A sobering reality" is how Lucian Peppelenbos, Climate and Biodiversity Strategist at Robeco, characterized the present investor mood in response to the data. Despite the continued desire to act, he observed that policy inconsistencies—particularly in the United States—have slowed progress and tempered short-term optimism. "While many investors remain committed to climate goals, the overall prioritization of climate change in investment strategies is showing signs of decline, particularly at the global level," Peppelenbos said.

Due to a lack of clarity in the direction of policy, one of the survey's most telling results is that 59% of institutional investors are pausing their climate-exposed investments in the United States. With 58% and 62% of European and Asia-Pacific investors, respectively, stating intentions to shift cash away from the United States and toward renewable energy, transitioning businesses, and other climate solutions, the mood is especially high among these investors.

Many investors see a lack of reliable, long-term policy support from U.S. leaders as the cause of the uncertainty. The majority—56%—of investors view the Trump administration's focus on fossil fuels as a short-term barrier to the net-zero transition, but they generally foresee a return to progress following a change in leadership.

As a result of these changes, regional disparities are becoming more apparent as well. According to the survey, 62% of European investors and 59% of Asia-Pacific investors still prioritize climate change in their investment plans. Comparatively, just 23% of North American investors currently engage in this practice, which represents a significant decline from earlier years and shows a shift in priorities between the two continents.

Many investors worldwide are still deterred by policy inconsistency. The poll highlights a large gap in trust in the government's commitment to climate targets, notably in North America and certain regions of Asia. Lack of supportive economic policies was mentioned as a significant impediment to furthering their climate investment plans by around 41% of investors in Asia-Pacific and 39% of investors in North America. Only 25% of European investors, in contrast, named policy support as a barrier, which is likely a result of the EU's more robust and consistent legislative frameworks that promote sustainability and decarbonization.

Robeco's dedication to helping customers through this uncertain environment was highlighted by Peppelenbos, who said, "Our role is to support clients—wherever they are on their sustainability journey—by aligning our investment strategies with their specific goals. Even amid uncertainty and shifting priorities, we remain steadfast in helping clients invest with clarity, resilience, and confidence."

The 2025 poll's overall message is one of cautious perseverance. The long-term prognosis for climate investing remains strong, even as it goes through a readjustment in the face of changing political headwinds, notably in the United States. While investors are getting used to the reality of policy-driven volatility, they are still looking for prospects in industries and areas where climate goals are supported by real policy frameworks and favorable financial incentives.

Institutional investors seem to be rethinking risk, rebalancing portfolios, and re-evaluating where and how to invest capital as climate change continues to alter the world's economic and financial structure. Robeco's survey findings indicate that the fundamental driving force toward net zero—particularly outside the U.S.—is still mostly there, even if there may be short-term challenges along the way.