As governments confront rising misinformation, constrained budgets, and intensifying climate risks, the need for evidence-based policy has never been greater. IISD President and CEO, Patricia Fuller, outlines the opportunities and challenges that will shape sustainable development in 2026.
How would you describe this past year in terms of sustainable development progress? Any milestones or setbacks that stand out?
This has been a demanding year, no question. Geopolitics, rising protectionism, and a wave of misinformation have all made it harder to design and deliver good policy. Government budgets are constrained by defence spending and, in many developing countries, by crushing debt service loads.
In this context, it’s no surprise the climate meeting in Belém didn’t deliver significant progress. Yet, we can point to some positive milestones this year.
Even in Belém, there was a groundswell of support from more than 80 countries for a roadmap for fossil-fuel phaseout. And globally, we crossed a historic threshold: renewables overtook coal in the energy mix. We also saw notable advances in environmental governance. The World Trade Organization’s Agreement on Fisheries Subsidies, its first-ever environmental deal, entered into force, as did the landmark Agreement on Marine Biological Diversity of Areas Beyond National Jurisdiction. And the International Court of Justice made it clear that states have an obligation to protect the climate — a ruling that will shape climate litigation and accountability for years to come.
So yes, the context was difficult, but multilateralism still delivered breakthroughs.
What makes you feel hopeful about the year ahead?
The economics of the energy transition — they’re moving faster than politics. Solar and wind are now the cheapest sources of new power generation in most markets. That’s driving a rapid surge in renewables, especially in large emerging economies where energy demand is growing fastest. No single country, not even the United States, can reverse it. It’s technological evolution. And if we remove barriers to renewable energy deployment, we can accelerate even further toward a cleaner, more secure, and more affordable energy future.
“A sustainable future is eminently possible, but it requires a healthier political and information ecosystem to get us there.”
There’s also great promise in nature-based solutions. Our own work shows they deliver multiple wins at once — climate adaptation, healthier ecosystems, stronger local economies.
What worries you most as we look ahead?
The accelerating impacts of climate change. This was another year of extremes: heatwaves across Europe, devastating wildfires in Canada and elsewhere, flash floods from Texas to the Himalayas, and catastrophic hurricanes in the Caribbean. These events are becoming the new baseline, not outliers. The good news is that most governments now have national adaptation plans. But the funding to implement them still falls dramatically short. That is a major risk for lives, livelihoods, and stability.
What does the world most urgently need to focus on next?
Misinformation is a big challenge. We cannot make sound decisions on the basis of false narratives, especially when climate impacts are now visible in people’s daily lives. We need political discourse grounded in facts and science. While there may be short-term trade-offs between the economy and the environment, there are none in the medium term, and certainly none for our children. A sustainable future is eminently possible, but it requires a healthier political and information ecosystem to get us there.
Which areas of sustainable development are showing the strongest momentum right now?
The most exciting shift is that solutions no longer live in silos. We’re seeing interventions that tackle climate, nature loss, adaptation, social justice, and economic development simultaneously. That’s something IISD specializes in. We’re not solving one problem at a tim e— we’re solving clusters of problems with integrated solutions backed by data, modelling, and real-world case studies.
Nature-based solutions are a great example. They’re proving to be extraordinarily cost-effective — from flood protection to water quality to restoring ecosystems. And municipalities and communities are acting on the evidence, investing in restoration because the economic advantages are now undeniable.
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What role do you see for think tanks in 2026?
Funding is tightening, both in development assistance and across the broader sustainability space. That means think tanks must show where they create the greatest leverage. And helping governments design strong, durable policy frameworks has one of the highest multiplier effects of any investment in sustainable development. We’re also hearing a clear message from many developing countries: less dependency, more partnership. That’s exactly where think tanks can add value — through peer learning, co-created programs, and technical support that strengthens domestic policy capacity.
“Solutions no longer live in silos. We’re seeing interventions that tackle climate, nature loss, adaptation, social justice, and economic development simultaneously.”
And finally, the global economy depends on clear and fair rules. Whether it’s investment frameworks, sustainability standards, or responsible approaches to critical minerals, think tanks help shape systems that create mutual benefits — not zero-sum competition.
And the question everyone asks: if AI is advancing so quickly, will it replace policy experts and researchers?
AI is a powerful tool. It strengthens research, accelerates analysis, and enhances communication. AI will give you answers based on what already exists — on established approaches. But sustainable development requires us to reach forward, toward new ideas and new solutions.
And contrary to what people might assume, much of this work simply cannot be done without real people. It requires being on the ground, experiencing the nuanced context in which decisions play out, and engaging directly with communities whose lives are impacted by policy. It also demands being in negotiation rooms, reading subtle changes in tone or dynamic, and understanding the human side of diplomacy — things no algorithm can yet replicate.
AI can support this work, but it cannot replace the experience, judgement, and trust that comes from people who show up, listen, and understand the world as it really is, as well as the potential for what it can be.
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This article was originally published by the International Institute for Sustainable Development (IISD) and is republished here as part of an editorial collaboration with the IISD.
