2025: The year climate finance stops pretending
Blunomy has drawn on our experience in a position paper exploring why 2025 marks a turning point for climate finance. We believe that for asset managers, there is both a strategic challenge and an opportunity: to rebuild credibility, redefine their role in the transition economy, and deliver impact alongside performance.
Climate finance is entering a decisive phase. Setbacks such as the suspension in the US of flagship initiatives like the Net Zero Asset Managers Initiative (NZAM) have revealed the fragility of voluntary commitments, while regulators and markets are pressing asset managers to demonstrate measurable impact. Pure green strategies have often underperformed and failed to deliver systemic change, leaving the sector exposed to accusations of greenwashing. The transition now demands new approaches and engagement on the underlying substance: financing decarbonisation in hard-to-abate sectors, building transparent and evidence-based methodologies, and aligning investment mandates with the realities of systemic risk. For diversified asset managers, this is both a strategic challenge and an opportunity to redefine a role in the transition economy and deliver both impact and performance.