Climate Risk Monthly — July 2025

Welcome back to Climate Risk Monthly! This month we're discussing the climate implications of recent U.S. legislation, previewing India's upcoming climate disclosure rules, and learning about China's newest mega dam, slated to be the world's largest hydropower project.

Read on to learn more!

We're taking a break next month, but we'll be back in September with all the latest from the world of climate risk.

Vote on September's Special Feature

We want to hear what you're interested in! Here are four topics we're considering for a special feature in our next edition:

1. How our oceans interact with climate change;

2. What to expect at COP30;

3. The fundamental science of climate change.

What's your top choice? Comment below or email us at climaterisknewsletter@garp.org with your vote!

The Climate Risk Mini Quiz

Think you know all the ins and outs of climate risk? Test your knowledge with this short quiz on topics from our Sustainability & Climate Risk (SCR®) Program curriculum!

Click here to access the quiz.

This month’s mini quiz focuses on net-zero practices. Good luck and let us know how you do in the comments below!

Recent GARP Content

Contributed Article | 17 July

Climate Risk Podcast | 10 July

GARP Risk Institute Article | 3 July

July 2025 News Digest

Trump Bill Takes a ‘Big, Beautiful’ Bite Out of U.S. Climate Progress | The Hill 

Over the past six months, there have been numerous instances of public, private, and governmental institutions stepping back from commitments to combat climate change, particularly in the U.S. The latest, and perhaps most impactful, example of this trend is the passage of the One Big Beautiful Bill Act (OBBBA) by the Trump administration earlier in July. The OBBBA contains a wide range of provisions covering many areas of the federal government, but several take particular aim at efforts to combat climate change and promote adoption of renewable energy sources. 

The renewable energy sector has experienced an astonishing rate of growth over the past 10 years, driven both by technological advances that have reduced costs and by subsidies. The OBBBA not only eliminates many of the U.S. subsidies for renewables but also institutes new subsidies for fossil fuel production and requires the government to issue new permits for fossil fuel extraction in the Gulf of Mexico and the Arctic National Wildlife Refuge. Analyses of the bill’s impact by organizations such as the Rhodium Group, C2ES, and Princeton University estimate that the U.S.’ greenhouse gas emissions will be 7-8% higher in 2035 than they would have been without the bill — the equivalent of putting an additional 134 million gas-powered cars on the road. 

Key Points: 

• The One Big Beautiful Bill Act (OBBBA) repeals a number of clean energy tax credits and renewable energy subsidies enacted by the Biden administration in the Inflation Reduction Act (IRA) in 2022. 

• The OBBBA provides significant benefits for the fossil fuel industry, including new tax breaks for oil, gas, and coal, as well as requirements for the government to permit new oil drilling projects in the Gulf of Mexico, Alaska, and the Arctic. 

• The Rhodium Group estimates that the bill will result in more than a 50% reduction in new renewable energy projects in the U.S. over the next 10 years and will lead to a 7% increase in greenhouse gas emissions. 

Click here to read the full article.

India to Issue Climate Risk Disclosure Rules for Banks in the Next Few Months, Sources Say | Reuters 

The Reserve Bank of India (RBI) is poised to take a major step forward in its efforts to address climate risk with the coming release of a comprehensive set of new disclosure rules for India’s financial sector. The rules, according to interviews with several anonymous sources, are expected to go into effect on a voluntary basis in fiscal year 2027 and then on a mandatory basis as of 2028. This represents a notable contrast from the global disclosure guidelines recently released by the Basel Committee on Banking Supervision, which, following pressure from the U.S., were left purely voluntary. 

In addition to disclosing climate-related risks to loan portfolios, banks in India will also be expected to measure and disclose the gross greenhouse gas emissions of their borrowers (Scope 3 emissions), and to conduct regular stress tests to assess the impact of severe weather events such as heatwaves and floods on their borrowers and the economy overall. 

If India’s new disclosure rules are released as expected, they will serve to underline that climate change and its consequences remain a serious priority for much of the world. 

Key Points: 

• The Reserve Bank of India (RBI) is expected to finalize their climate risk disclosure rules in the coming months. It’s expected they will go into effect on a voluntary basis in the 2027 fiscal year and on a mandatory basis in 2028. 

• The rules will require banks to measure and disclose material climate-related risks to their lending portfolios — including borrowers’ greenhouse gas emissions — as well as risk mitigation strategies and targets. 

• The RBI has also issued a draft note to banks prescribing a methodology for them to assess future impacts of extreme weather events and transition risks such as a rising price of carbon. 

Click here to read the full article. 

Why China’s Neighbours Are Worried About Its New Mega-Dam Project | Reuters 

Chinese authorities announced that construction has commenced on what will become the world’s largest hydropower project. The planned series of five dams will be built in the eastern Tibetan Plateau on the trans-boundary Yarling Zangbo river, which becomes the Brahmaputra in India and Bangladesh, sparking concerns about downstream water security, flood risks, and sediment flows vital for agriculture.  

The Medog, or Motuo, Hydropower Station is expected to cost at least USD 170bn and generate 300bn kilowatt-hours of electricity annually — roughly equivalent to the U.K.’s annual power consumption. It is expected to be operational in the mid-2030s. 

Chinese officials have described the project as a landmark clean energy initiative that will support national development and help power energy-hungry eastern cities. The dam is being promoted as a ‘run-of-the-river’ project, which allows natural flow to continue largely uninterrupted. However, regional experts and NGOs have voiced concerns over the environmental impact on the ecologically rich Tibetan Plateau, potential displacement, and the risks of building such a large structure in an area prone to earthquakes and extreme weather.  

While Chinese officials have stated that they have “conducted necessary communication” with downstream countries, the limited transparency around the project has heightened unease in India and Bangladesh, which rely on the Brahmaputra for drinking water, irrigation, and hydropower. India has also announced its own dam plans on the river’s course as a potential buffer. 

Key Points: 

• China has begun building a USD 170bn, five-dam hydropower project on the Yarlung Zangbo River, aiming to generate 300bn kWh annually. 

• The project is expected to begin operations in the 2030s and is designed to provide clean energy and boost regional development. 

• Concerns have been raised by India, Bangladesh, and NGOs about the impact on water security, agriculture, ecosystems, and seismic safety.  

Click here to read the full article. 

Other Noteworthy Articles

• The International Court of Justice issued a non-binding opinion reinforcing the legal basis for countries to be sued for failing to regulate greenhouse gas emissions (Reuters).

• In June 2025, solar became the European Union's single largest energy source for the first time (Energy Live News).

• The UK scrapped plans to create a taxonomy defining what qualifies as a "green" investment (Reuters).

• Shell and other energy companies have halted efforts to build a "net zero" emissions strategy due to the requirement that they stop developing new oil and gas fields (The Financial Times).

Photo of the Month

Each month, we will select a reader-submitted photo to highlight in our next newsletter. If you’d like to participate, please send your photo to climaterisknewsletter@garp.org, along with your name and where the photo was taken.

Thanks for reading — see you in September!