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January 2025 Breaks Records As the Warmest On Record, Despite La Niña Transition

The year 2025 has started with a record-breaking January, marking the warmest January on record, continuing the trend of extreme global temperatures despite the shift to the cooler La Niña weather pattern.

Key Facts

  • January 2025 continued the pattern of unusually high global temperatures, with the average temperature being over 1.5°C higher than pre-industrial levels in 18 of the last 19 months, according to the EU’s Copernicus Climate Change Service (C3S).
  • The global temperature for January was 1.75°C higher than pre-industrial levels.
  • This warm streak continues even as the world shifts from the previous warming El Niño phase, which contributed to making 2024 the hottest year on record, to the cooling La Niña phase. La Niña is characterized by the cooling of equatorial Pacific waters, typically limiting the global temperature rise.

Important Quote

“The fact that we are still seeing record temperatures outside the influence of El Niño is a bit surprising,” said Samantha Burgess, strategy manager at the European Centre for Medium-Range Weather Forecasts.

Key Story

El Niño peaked more than a year ago, and Copernicus estimates that La Niña has not yet fully developed, placing the world in a neutral state between the two phases.

Despite La Niña’s cooling effect, Burgess notes that it might not be enough to temporarily curb global temperatures. Other factors contributing to the heat include extreme temperatures in other ocean basins and, most importantly, the ongoing greenhouse gas emissions, which are the primary driver of global warming.

“The biggest factor contributing to climate warming is the burning of fossil fuels,” says Burgess.

Scientists from Berkeley Earth have projected that 2025 is likely to be the third warmest year on record, following 2024 and 2023. Although La Niña may cause some cooling, uncertainty remains about how it will develop.

Globally, average sea surface temperatures for January 2025 were the second highest ever recorded for the month, only slightly surpassed by January 2024.

MENA Venture Capital Stable As International Investor Activity Shifts

A Data-Led Analysis Of Investor Behavior In A War-Affected Region

Venture capital activity in the Middle East and North Africa remained relatively stable one month after the escalation of regional conflict. Early data, however, indicate changes in investor behavior rather than immediate shifts in funding totals. Initial signals are visible in investor participation, capital allocation, and deal pipeline activity.

Venture Markets And The Lag In Response

Funding announcements reflect decisions made months earlier, meaning that today’s figures do not capture the full impact of current events. Investors typically adjust strategies gradually, signaling future shifts long before they are immediately visible in total funding numbers.

International Capital As The Key Pressure Indicator

Participation of international investors remains a key indicator across the MENA venture market. Global capital has historically accounted for a significant share of funding in the region. Following global interest rate increases, international participation declined through 2023. This shift was reflected in lower cross-border deal activity, more cautious capital deployment, and longer fundraising timelines.

Implications For The Broader Startup Ecosystem

Changes in international investor activity affect multiple parts of the startup ecosystem. A recovery in participation was recorded in 2024 and continued into 2025, supporting funding activity and cross-border investment. If uncertainty persists, potential effects include slower investment decisions, reduced cross-border engagement, and extended fundraising cycles. International capital also plays a role in supporting larger funding rounds and access to global networks.

Next Steps For Stakeholders

International capital represents one of several factors shaping venture activity in the region. Its movement often precedes changes in late-stage funding, startup formation, and exit activity. Investors, policymakers, and ecosystem participants rely on data and scenario analysis to assess these trends and adjust strategies.

For A Deeper Insight

Further analysis on venture activity, capital flows, and geopolitical impact across the region is available in the full MAGNiTT report.

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