Climate Change News

Sports clothing firm Lululemon – the official supplier of kit to Canada’s Olympics team – is portraying itself as a sustainable brand despite its rising greenhouse gas emissions and “highly-polluting” activities, according to a complaint filed to the French authorities on Wednesday.

Environmental advocacy group Stand.earth accused the Vancouver-based apparel company of greenwashing in a “first-of-its-kind complaint” submitted to the French Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) days before the Olympics Games opening ceremony in Paris.

Stand.earth has called on the French regulator to investigate Lululemon’s “vague, disproportionate and ambiguous” environmental claims which, the green group said, constitute misleading commercial practices. In response, the company told Climate Home its publicity does not misrepresent its operations.

Through its “Be Planet” campaign unveiled in 2020, Lululemon tells customers that its “products and actions avoid environmental harm and contribute to restoring a healthy planet”.

A screengrab from Lululemon’s sustainability webpage

But the company’s latest impact report shows that emissions from Lululemon’s full supply chain – known as Scope 3 – nearly doubled to 1.2 million tonnes of carbon dioxide between the campaign’s launch and 2022. That’s equivalent to powering 300,000 gasoline cars for a year.

Stand.earth’s complaint said Lululemon’s emissions are set to grow even further as it tries to hit a goal of doubling sales by 2026.

“Lululemon customers worldwide deserve to know the true impacts of the company’s climate pollution, not the greenwashed version it uses to sell products,” said Stand.earth Executive Director Todd Paglia.

UAE’s ALTÉRRA invests in fund backing fossil gas despite “climate solutions” pledge

Earlier this year, Stand.earth filed a similar complaint against Lululemon in Canada that resulted in the country’s Competition Bureau opening a formal investigation into the retailer’s use of environmental claims. A separate complaint accusing Lululemon of greenwashing was brought in early July this year by a private citizen in the US District Court for the Southern District of Florida.

A spokesperson for Lululemon said that Be Planet “is not a marketing campaign” but “a pillar” of the company’s impact strategy, and that the firm is confident the statements it makes to the public accurately reflect its impact goals and commitments.

“We are taking direct action and are committed to collaborating with industry partners to help address supply chain impacts on climate change,” the spokesperson added. “We welcome dialogue and remain focused on driving progress.”

Rising revenues, rising emissions

Lululemon is one of the world’s fastest-growing retailers of athletic apparel, with net revenues rising 19% to $9.6 billion in 2023. The company, which has more than 700 stores in 20 countries, is the official clothing provider for Team Canada at the Olympic Games whose opening ceremony takes place in Paris this Friday.

According to the International Olympic Committee (IOC), the Paris 2024 Games are targeting a 50 percent reduction in carbon emissions compared to the average of the London Olympics in 2012 and Rio de Janeiro in 2016, including Scope 3 emissions such as from spectator travel. This means Paris 2024 will offer the first Olympic Games aligned with the Paris Agreement on climate change, the IOC says.

View of Lululemon name above its retail store in the SoHo neighborhood of Manhattan, New York, NY, August 2, 2023. (Photo by Anthony Behar/Sipa USA)

Lululemon, meanwhile, has committed to reaching net zero emissions across its supply chain by 2050 through a target validated by the Science Based Targets initiative (SBTi), widely seen as the gold standard in corporate accountability.

But the company has come under intense criticism from green advocates over its climate and environmental impacts caused by energy-intensive production, high consumption of natural resources like water and long-distance shipping of items around the globe.

Four-fifths of Lululemon’s manufacturers in 2022 were located in countries that are highly-dependent on fossil fuels like Vietnam, Cambodia, Sri Lanka and Indonesia. The materials most commonly used by Lululemon in its clothes – polyester and nylon – are themselves produced from fossil fuels, according to the Stand.earth complaint.

EU greenwashing crackdown

The environmental group said the case will mark the first test of the French regulator’s readiness for a wave of new European greenwashing legislation.

The European Parliament approved a new directive in January requiring member states to introduce stricter rules surrounding the use of sustainability claims by companies and banning certain practices.

European lawmakers are currently working on a further piece of legislation that aims to define what kind of information companies must provide to justify their green marketing in the future. In its current form, the proposed regulation would require sustainability claims to be based on scientific evidence and checked by an independent and accredited verifier.

A global wealth tax is needed to help fund a just green transition

The so-called “Green Claims” directive is currently going through a negotiation process between the European Parliament and the European Council – which brings together EU leaders – before a final text is agreed.

“For decades, companies have faced no consequences for deceptive practices aimed at misleading the public about their environmental and climate justice impacts,” said Stand.earth’s Paglia. “However, we’re now seeing a rising interest in holding these companies accountable for their claims, and a crackdown is beginning to happen from Europe to North America.”

(Reporting by Matteo Civillini; editing by Megan Rowling)

 

The post Canada’s Olympics kit provider hit with greenwashing complaint in France appeared first on Climate Home News.

As world leaders gathered in Dubai at the start of COP28 last December, the United Arab Emirates dropped a surprise headline-grabbing announcement. The host nation of the UN talks promised to put $30 billion into a new climate fund aimed at speeding up the energy transition and building climate resilience, especially in the Global South.

ALTÉRRA was billed as the world’s largest private investment vehicle to “focus entirely on climate solutions”. COP28 President Sultan Al-Jaber hailed its launch as “a defining moment” for creating a new era of international climate finance.

Yet four months later, one of the initial funds ALTÉRRA backed with a $300-million commitment agreed to buy a major fossil gas pipeline in North America, Climate Home has discovered.

In March, BlackRock’s “Global Infrastructure Fund IV” acquired half of the 475 km-long Portland Natural Gas Transmission System, with Morgan Stanley taking the rest in a deal worth $1.14 billion overall.

That acquisition would not have come as a surprise to the fund’s investors.

When US-based BlackRock pitched it to the State of Connecticut’s Investment Advisory Council back in 2022, the world’s biggest asset manager gave a flavour of where their money would likely end up. Its presentation – seen by Climate Home – featured a list of “indicative investments” including highly-polluting sectors such as gas power plants and transportation networks, liquefied natural gas (LNG), airports, terminals and shipping.

Climate Home does not know whether ALTÉRRA saw the same presentation, nor did the UAE firm respond directly to a question asking if it was aware before the COP28 announcement that the BlackRock fund might invest in those sectors.

An ALTÉRRA spokesperson told Climate Home its “investments seek to build the energy systems of tomorrow, while supporting the transition of existing energy infrastructure towards a just and managed clean energy ecosystem”.

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In addition to the gas pipeline, BlackRock’s infrastructure fund has so far invested in carbon capture, waste management, utilities maintenance services, telecom infrastructure, data centres and the production of industrial gases, according to regulatory filings, a BlackRock job advertisement and press reports accessed by Climate Home.

A BlackRock spokesperson said its global infrastructure fund franchise “targets investments in solutions across the energy transition value chain, driven by the long-term trends of decarbonization, decentralization, and digitalization to support the stability and affordability of energy supply around the world”.

Andreas Sieber, associate director of global policy and campaigns at climate advocacy group 350.org, said Climate Home’s findings “confirm our worst fears”. “The ALTÉRRA fund uses a masquerade of green progress while funnelling investment into fossil fuel pipelines and gas projects, which are the biggest causes of the climate crisis,” he told Climate Home.

Climate finance is a hot topic at UN negotiations, with countries expected to set a new global goal at COP29 in Baku, Azerbaijan, this November, amid persistent calls for higher amounts to help poorer nations boost clean energy production.

The COP28 presidency said last year that ALTÉRRA would “drive forward international efforts to create a fairer climate finance system, with an emphasis on improving access to funding for the Global South”. Al-Jaber added that “its launch reflects… the UAE’s efforts to make climate finance available, accessible and affordable”.

But the sparse details provided at the time prompted climate justice activists to question the real impact it would have in countries that most need financial support to adopt clean energy and adapt to a warming world. Only about a sixth of the fund – $5 billion – was earmarked as “capital to incentivize investment into the Global South”.

Follow the money

ALTÉRRA is a so-called ‘fund of funds’. Instead of directly investing money in individual companies or assets, it puts its cash into a series of funds run by other investment firms. At COP28, it committed a total of $6.5 billion to funds managed by BlackRock, Brookfield and TPG, without setting out how the remaining $23.5 billion would be spent.

Since then, ALTÉRRA has not announced any further investments. Its chief executive, Majid Al Suwaidi, told Bloomberg this month that the fund is “actively planning the next phase of allocations”, without giving further details.

The launch of #ALTÉRRA marks the start of three unique alliances with global asset managers, @Brookfield, @BlackRock, and @tpg.

Together, we share the same vision, to bridge the climate investment gap and finance a new climate economy. pic.twitter.com/7yEXOyZqpK

— ALTÉRRA (@Alterrafund) December 1, 2023

Most of the funds picked by ALTÉRRA remain at an early stage and have yet to announce completed transactions or are still trying to raise more capital from investors. The most notable exception is BlackRock’s fourth Global Infrastructure Fund. By the time it won the $300-million commitment from ALTÉRRA in Dubai, the vehicle was ready to deploy its money.

ALTÉRRA told Climate Home its investment in the BlackRock vehicle is in line with its goals of getting climate finance “flowing quickly and at scale” and of partnering “with funds that invest in the energy transition and accelerate pathways to net-zero”.

Announcing its first $4.5-billion closing in October 2022, BlackRock said the fund would “continue to target investments in climate solutions, while also supporting the infrastructure needed to ensure a stable, affordable energy supply during the transition”.

In private conversations with potential investors, the asset manager spelled out more clearly what that meant.

Its presentation to the State of Connecticut in December 2022 showed that the fund would not only invest in things like renewable energy, electrification and battery storage, but also in fossil gas power plants and pipelines, LNG and transportation infrastructure like airports, shipping and terminals.

A slide from BlackRock’s presentation of the Global Infrastructure Fund IV to investors

In line with this strategy, BlackRock agreed a deal this March for its Global Infrastructure Fund IV to acquire half of the Portland Natural Gas Transmission System (PNGT), a fossil gas pipeline stretching from the Canadian border across New England in the United States to Maine and Massachusetts.

When it began operations in 1999, the pipeline helped shift New England’s power generation away from coal and oil, but it has also created a stronger dependency on fossil gas, leaving citizens vulnerable to price spikes. The region is now planning to accelerate the rollout of renewable energy sources.

Comment: To keep its profits, Big Oil stole our future

The PNGT was not the first fossil fuel infrastructure the BlackRock team behind the Global Infrastructure Fund had snapped up. In a written testimony submitted this March to the State of New Hampshire, a senior executive listed a dozen oil and gas pipelines backed by earlier rounds of the fund. They included one operated by ADNOC, the UAE state-owned oil company whose CEO is Sultan Al-Jaber, COP28 president and chair of ALTÉRRA’s board.

Responding to Climate Home’s findings on where ALTÉRRA’s money is going, Mohamed Adow, director of Nairobi-based think-tank Power Shift Africa, said it is “extremely concerning to see a fund hailed by a COP president as a solution to the climate crisis investing in fossil fuels”.

“This needs to be a wake-up call to the world that these funds created by COP hosts are little more than PR stunts designed to greenwash the activities of fossil fuel-producing nations,” he added.

Oil-backed carbon capture

BlackRock does not disclose the infrastructure fund’s complete portfolio, but it has invested another $550 million in Stratos, the world’s biggest direct air capture (DAC) project being developed in a joint venture with oil giant Occidental. The plant under construction in Texas promises to suck as much as 500,000 tonnes of carbon dioxide out of the atmosphere annually and bury it underground.

Its proponents see DAC as a key technology to balance out emissions in the race to achieve net zero by 2050, although so far it remains expensive and largely unproven at scale. Stratos won a grant from the US government to fast-track the construction of the facility, and it has struck deals to sell carbon offsets generated in future from the plant with corporate giants like Amazon.

Scottish oil-town plan for green jobs sparks climate campers’ anger over local park

When the DAC partnership was announced last November, BlackRock CEO Larry Fink said Stratos “represents an incredible investment opportunity for BlackRock’s clients… and underscores the critical role of American energy companies in climate technology innovation”.

But Stratos’ critics have questioned Occidental’s motivations and dismissed its DAC investments as a greenwashing ploy to keep pumping oil and slow down the transition away from fossil fuels.

“We believe that our direct capture technology is going to be the technology that helps to preserve our industry over time,” Vicki Hollub, Occidental’s chief executive, told the CERAWeek energy industry conference last year. “This gives our industry a license to continue to operate for the 60, 70, 80 years that I think it’s going to be very much needed.”

Call for safeguards

While BlackRock’s infrastructure fund deploys its cash largely in the Global North, ALTÉRRA’s promised investments in developing countries are still taking shape.

Brookfield in June launched a new “Catalytic Transition Fund” backed by ALTÉRRA with a $1-billion commitment. The fund’s stated focus is “directing capital into clean energy and transition assets in emerging economies”.

Climate Home asked ALTÉRRA if it had adopted any exclusion policies that would, for example, rule out investment in certain types of fossil fuels.

The UAE fund did not respond to the question, but a spokesperson said its investment approach is aligned with the goal “of accelerating the climate transition, with a focus on clean energy, industry decarbonization, sustainable living, and climate technologies”.

Climate activists protest against fossil fuels during COP28 in Dubai in December 2023. REUTERS/Thomas Mukoya

350.org’s Sieber called on Al-Jaber – who was widely criticised by green groups for his dual role as president of COP28 and head of a fossil fuel corporation – to “act swiftly to enforce stringent safeguards” for ALTÉRRA’s investments.

“The UAE is on the brink of losing the little credibility it still has left in addressing the urgency of the climate emergency,” Sieber added. “The world, especially communities who are being hit the hardest by climate impacts every day, cannot afford to have one more cent invested in fossil fuels.”

The key question now is whether Azerbaijan – the host of COP29 and itself a substantial producer and exporter of oil and gas – will do things differently. Last week, it announced a new voluntary fund that it said will invest at least $1 billion for emissions reduction projects in developing countries. Baku is hoping to secure contributions for it from fossil-fuel producing nations and companies.

Power Shift Africa’s Adow said developing countries need state-backed climate finance from rich nations, negotiated through the UN climate process, and “not just cooked up in voluntary schemes”. That funding “can be used where the need is greatest, not just where it might make most money for some private profit-seeking businesses,” he added.

(Reporting by Matteo Civillini; fact-checking by Sebastián Rodríguez; editing by Megan Rowling and Sebastián Rodríguez)

 

The post UAE’s ALTÉRRA invests in fund backing fossil gas despite “climate solutions” pledge appeared first on Climate Home News.

Ilan Zugman  is Latin America Director at 350.org, based in Brazil, and  Fanny Petitbon is France Team Lead at 350.org.

When G20 finance ministers gather in Rio de Janeiro this week, Brazil and France have a chance to put these powerful countries on track to deliver a global wealth tax that could raise over $680 billion per year in the fight to tackle poverty and the climate crisis. Both countries have been vocal supporters of taxing the super-rich to fund international development and climate action.  

In April, finance ministers Fernando Haddad (Brazil) and Bruno Le Maire (France) announced their intent to tax the wealth of billionaires by at least two percent annually, prompting ministers from Germany, South Africa and Spain to back the proposal. As the current host of the G20, Brazil commissioned an investigation into the feasibility of this global wealth tax – and the results were published by French economist Gabriel Zucman in June, generating further momentum in efforts to fill the funding gap for climate and development.  

Zucman’s findings show that a global wealth tax on the super-rich – billionaires and people with assets worth more than $100 million – could be enforced successfully even if all countries did not adopt it. It is also a popular measure: more than two-thirds of people across seventeen G20 countries show support for making the super-rich pay higher taxes as a means of funding major improvements to our economy and lifestyles.  

This isn’t surprising. Ensuring that billionaires are properly taxed could deliver significant, tangible benefits in people’s lives and go some way to addressing the systemic injustices and inequality reflected by the climate crisis and poverty. 

The world needs a new global deal on climate and development finance

An ambitious global wealth tax, together with higher and permanent tax on oil corporations and extraction, would provide hundreds of billions of dollars/euros each year to properly fund scaling up renewable energy, rolling out heat pumps and insulation programmes to lower the cost of heating or cooling our homes, new public transport links, future-proof jobs and much more – helping communities to thrive.  

It would also end more than a decade of broken promises by G20 states, ensuring that some of the world’s wealthiest countries have enough money in their national coffers to provide adequate finance to pay for those suffering the consequences of climate impacts now. Helping the poorest communities prepare for unnatural disasters like increased wildfires, flooding and sea level rise, and ensuring people can rebuild their homes, infrastructure and places of work when preventative measures are not an option. 

Power to communities

A global wealth tax is a moral imperative. By implementing a fairer system of taxation, the G20 could accelerate a just transition to a low-carbon economy, cutting dangerous carbon emissions and boosting living standards and energy access at great scale, while also tackling deep-rooted injustice. Delivering finance for community-oriented renewable energy projects across Latin America, Africa, Asia and the Pacific would put power back in the hands of communities that continue to suffer from the violent legacy of colonialism and extractive profiteering. 

For this to be achieved France, and other wealthy nations in the G20 like Germany and the UK, must be willing to make concessions and assume historical responsibility for exploiting fossil fuel extraction in the economically poorer countries whose citizens are experiencing the worst consequences of the climate crisis. The emerging French government must deliver concrete plans to redirect its fortune and tax its billionaires towards a renewable energy-powered planet. 

Where East African oil pipeline meets sea, displaced farmers bemoan “bad deal” on compensation

It is incumbent on both Brazil and France to seize the opportunity presented by growing support to deliver a global wealth tax at the meeting of powerful finance ministers this week. Both countries must do everything they can to build trust and political will around the crucial proposal. But this will be a challenge if they undermine their stance on the international stage with contrasting domestic policy, something both governments are guilty of. 

Brazil has been pushing for new oil projects, including in the Amazon and is gearing up to become the fourth-largest oil producer in the world. France, despite being fined by the European Commission, is still not on track to meet its domestic renewable energy targets and announced in February a two billion-euro cut to the budget allocated for environmental and energy transition programmes. It is high time for both countries to stop the smoke and mirrors approach to international diplomacy, by aligning their commitments at national and international levels. 

Leaders’ summit

This week, ministers Haddad and Le Maire have a responsibility to rally their G20 counterparts around the wealth tax proposal and send a strong and unified signal to heads of state and governments to take concrete action that delivers a global wealth tax on billionaires when they meet in November. 

The stakes are high. The vast scale of global inequality means that nearly one in eleven people around the world live below the poverty line according the World Bank. In addition, this is set to be yet another record-breaking year for climate impacts, in a critical decade to prevent global heating from tipping over the 1.5°C threshold – a limit beyond which the ability of impacted communities to survive and thrive will be put at intolerable risk. We need to see vast quantities of finance mobilised to scale up renewable energy at the speed needed, and billionaires and multi-millionaires need to be forced to pay up.  

We’re all rooting for this one to work – it can take us a long way.

The post A global wealth tax is needed to help fund a just green transition appeared first on Climate Home News.

In the Scottish city of Aberdeen, a debate over the region’s energy transition away from fossil fuels is playing out over roughly one square mile of green space.

In question is a proposed development called the Energy Transition Zone (ETZ), which is intended to bring in more renewable energy investments as the city tries to cut its dependence on the oil and gas industry that has defined it for half a century. 

As the UK’s new Labour government promises not to issue any more oil and gas licences, the future of the sector is in doubt and the company behind the ETZ says it wants to “protect and create as many jobs as possible” in the region through investing in clean energy.

But the ETZ has received significant pushback from community groups in the part of Aberdeen it is destined for. That’s because the proposed development, as currently designed, would pave over about a third of St. Fittick’s Park in Torry, the only public green space in one of Scotland’s most neglected urban areas.

The battle over St Fittick’s Park illustrates the friction that is emerging more frequently around the world as the ramp-up of clean energy infrastructure changes communities. Climate Home has reported on these tensions provoked by Mexico’s wind farms, Namibia’s desert hydrogen zone, Indonesia’s nickel mines and Germany’s Tesla gigafactory.

Just transition?

The ETZ is backed by fossil fuel giants BP, Shell and local billionaire Ian Wood, whose Wood Group made its money providing engineering and consulting services to the oil and gas industry.

The plan is to create campuses focused on hydrogen, carbon capture and storage, offshore wind, and skills development in an area initially the size of 50 football pitches, but expanding as private investment grows. 

To this end, ETZ Ltd – the company set up to build and run the zone – will receive up to £80m ($103m) from the UK and Scottish governments. Announcing some of that funding in 2021, the Scottish government’s then net zero, energy and transport secretary Michael Matheson said “urgent, collective action is required in order to ensure a just transition to a net-zero economy”, adding “Scotland can show the rest of the world how it’s done”.

But many Scottish climate campaigners don’t see this as a just transition. About 100 of them travelled to St. Fittick’s Park last week to hold a five-day “Climate Camp” in a clearing that would become part of the ETZ.

One camper, who did not want to give her name, told Climate Home that the energy transition should not “exacerbate existing inequalities, but try to redress existing inequalities”. A just transition, she said, must protect both workers in the fossil fuel industry and community green spaces.

Another protestor who did not want to giver her full name is Torry resident Chris. She said “the consultation process was flawed”. Not many people participated to start with, and some stopped going to meetings because “they were disillusioned with the way that good ideas were co-opted and then used to justify the expansion of the industrial area into the park”, she added.

Green MSP Maggie Chapman at the Climate Camp on 13 July (Photo: Hannah Chanatry)

Local Member of the Scottish Parliament (MSP) Maggie Chapman, from the Scottish Green Party, agreed, adding “the best transition zone plan in the world will fail” if it is done to a community rather than with meaningful input from them.

Another protesting resident, David Parks, said wealthier parts of the city would not have been disregarded in the same way. “You wouldn’t see this in Old Aberdeen and Rosemount,” he said. “[Torry] is just kind of the dumping ground for all these projects that you wouldn’t get off with anywhere else.”

Industrial developments have encroached on the old fishing town of Torry for decades. Today, residents are hemmed in by an industrial harbour, roads and a railway and live alongside a waste-to-energy incinerator, a sewage plant, and a covered landfill. 

David Parks at the Climate Camp in St. Fittick’s Park on 13 July (Photo: Hannah Chanatry)

Some of the activists also take issue with the emphasis the ETZ places on hydrogen and carbon capture and storage, which they see as “greenwashing”. 

Hydrogen is a fuel that can be made without producing greenhouse gas emissions, and used to decarbonise industries like steel-making which are difficult to clean up.

But a Climate Camp spokesperson told Climate Home that, “given the industry’s tendencies” and the fact that 99% of hydrogen is currently made using fossil fuels, they assume it will be produced in a polluting way at the ETZ.

Backers respond

ETZ Ltd told Climate Home in a statement that the project is committed to collaborating with the local community, particularly on efforts to refurbish what would be the remainder of the park. 

While the ETZ’s opponents argue there are existing industrial brownfield sites in the area that could be used instead of the park, the company said the area in St. Fittick’s Park next to the port is essential for the development to draw in substantial investment for renewables and for Aberdeen to compete in a new energy market.

Many brownfield sites are already planned for use by the ETZ, and would not provide the kind of logistical access needed for the planned projects, they added.

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“Almost all other ports in Scotland are making similar investments, and we simply don’t want Aberdeen to miss out on the opportunity to position itself as a globally recognised hub for offshore renewables and the significant job benefits this will bring,” said the statement.

The company added that the original plans for use of the park had been considerably reduced and the new master plan includes several measures to revitalise parts of the park and boost public access. It includes several parklets, a boardwalk, enhanced wetlands and a skate and BMX bike park.

While the oil industry’s backing has raised campaigners’ eyebrows, ETZ Ltd said the industry’s involvement is key to ensuring the development of skills and jobs central to the ETZ’s goals. 

The section of St. Fittick’s Park  up for development was rezoned in 2022 by the Aberdeen City council in order to allow industrial use of the land. Campaigners have challenged that decision and Scotland’s highest civil court will issue a judicial review later this month.

“You can’t just switch it off”

The ETZ dispute is just one example of efforts across Scotland to navigate the planned shift away from fossil fuels to renewable energy.

Tools to support a transitioning workforce have stalled. An offshore skills passport is meant to streamline and unify the certification process for both the fossil fuel and renewable offshore industries, to enable workers to go more easily from one sector to the other. But it was delayed for years before a “roadmap to a prototype” was released in May this year.

“The people can see a future, but it’s not happening – and they can see the current reality, which is [fossil fuels] declining, and that makes it very challenging,” said Paul de Leeuw, director of the Energy Transition Institute at Aberdeen’s Robert Gordon University. 

He said the focus needs to be on manufacturing and the supply chain, as that supports about 90% of employment in renewables such as solar and wind power. “If you don’t get investment, you don’t get activity, you don’t get the jobs,” he added.

That’s the key concern for Alec Wiseman, who spoke to Climate Home while walking his dog in St. Fittick’s Park on Saturday. He seemed mostly unbothered by the climate camp, but complained it meant he couldn’t let his dog off leash. 

Alec Wiseman walks his dog in St. Fittick’s Park on 13 July (Photo: Hannah Chanatry)

A Torry resident, Wiseman worked offshore for 25 years. He said he wants the ETZ to leave the park alone – and he also wants the overall energy transition to slow down until there is a clear plan.

“The government needs to sit down with the oil companies and figure out something proper” for both the transition and the ETZ, he said, expressing scepticism about employment in wind energy. Overall, operating wind farms, once they’re up and running, does not require as many skilled workers as operating an oil and gas field. “You can’t just switch it off [the oil and gas],” he said.

Lack of planning is what worries Jake Molloy, the recently-retired regional head of the Rail, Maritime and Transport Workers Union (RMT). Before leading the union, Molloy spent 17 years working offshore, and now sits on Scotland’s Just Transition Commission. He has spent years advocating for a fair deal on behalf of workers and local communities.

“We need to do that value-sharing piece, that community-sharing piece, which was lost with oil and gas,” he said, referencing the privatisation of the industry in the 1980s. Right now, he says, communities that bear the brunt of the impact of oil and gas production don’t see the majority of the benefits – those flow to corporations. “If we allow that to happen again, we’re a million miles away from a just transition,” he warned.

UK court ruling provides ammo for anti-fossil fuel lawyers worldwide

Molloy also thinks the investment and jobs promised by the ETZ are not realistic, because previous changes to government policies caused too much whiplash, making investors shaky. However, he is curious about what will come from Labour’s announcement of Great British Energy, described as a “publicly-owned clean energy company” headquartered in Scotland.  He also hopes to see climate change addressed on a crisis footing, similar to the approach to the COVID pandemic.

There are indications of renewed momentum on renewable energy in the UK. The Labour government has already lifted an effective ban on onshore wind in England and brought together a net-zero task force led by the former head of the UK’s Climate Change Committee,  Chris Stark. 

“In the context of an unprecedented climate emergency,” the ETZ said in a statement, “there are widespread calls from government and industry for energy transition activities to be accelerated.”

But, for many, it is still too soon to know whether that shift will materialise, and be implemented in a just way.

“The opportunities are there,” said MSP Chapman. But, she added, “it requires political and social will to make it happen and that’s the big challenge.”

(Reporting by Hannah Chanatry; editing by Joe Lo and Megan Rowling)

The post Scottish oil-town plan for green jobs sparks climate campers’ anger over local park appeared first on Climate Home News.

Foteini Simic, 16 years old, and Petros Kalosakas, 18 years old, are high-school students and Greenpeace volunteers from Athens, Greece.  

There are few moments in life that count forever. Choosing who (and if) to marry, becoming a parent, buying a house… Before all of these come the last years of the Greek Lykeio (senior high school) and the critical final exams held during the month of June. The grades one gets at the end of those three years give shape to all the life milestones to come.  

This year’s exams – especially their final days, June 11-13 – were for sure memorable… Temperatures soared to 43C in the month of June in much of the country – an unprecedented occurrence in our lifetime, which forced us to go through this important rite of passage at the end of high school in unbearable conditions.  

Difficulty to focus and breathe, dry mouths during oral exams, stifling heat slowing one’s handwriting, and temperatures that the human body cannot endure for long – these were not the ideal conditions for a successful graduation.  

But the heatwave that messed up our graduation exams is not just bad luck. It is the result of very bad decisions. Recent studies have attributed Greece’s searing heat and ensuing wildfires of the past years to climate change. The UN Intergovernmental Panel on Climate Change (IPCC) concludes that the burning of fossil fuels is a primary cause for the excessive heating and rapidly rising temperatures.

Saudi visa crackdown left heatwave-hit Hajj pilgrims scared to ask for help

This year’s heatwave was not only intense, but earlier than in previous years. As schools close for three months in the summer when the summer heat is high, there is normally not much need for air conditioning and most public schools don’t have more than ceiling fans to cool off.  

The climate crisis has become an unfair obstacle to our individual prospects, affecting our entire generation across countries and continents. Of course, we will work hard to go through all the precious moments that life can offer, but it will be impossible to look back at this boiling month of June and ignore how badly it impacted our grades – and our future.  

This might be a year that fossil fuels, and the companies that profit out of them, stole our opportunity to make memories and build a bright future. 

Climate chaos hitting children

What we have missed in Greece this year pales in comparison to what others around the world have lost. Millions are displaced by floods in Bangladesh, while wildfires and storms claim victims from the Caribbean to China and Canada.  

Children are often those more severely affected: we’re living through a global decline in the provision of education, with the number of children missing out on schooling inflating to a quarter billion. Extreme heat waves, fuelled by fossil fuel companies, threaten our generation’s future. In our times, the climate crisis is no longer just a warning. It is a harsh reality that is affecting our daily lives. 

Climate chaos is real – and we are already facing its impacts. Yet governments have failed to move beyond fossil fuels and continue to depend on oil and gas companies, whose profits have been going strong, at an average of $3 billion a day for the last 50 years.  

UK court ruling provides ammo for anti-fossil fuel lawyers worldwide

Big oil and gas majors like Shell, TotalEnergies, and ENI have known about the impacts of climate change for decades. Yet even though they kept making record profits – they never devoted their talents and resources to fix the problem. They didn’t use their political ties to ring the alarm bell. They rather invested millions and millions in greenwashing and denial.  

Many others knew as well. Even our grandparents knew the lines of Greek singer Cat Stevens (today Yusuf Islam): “You roll on roads… pumping petrol gas… But they just go on and on and it seems that you can’t get off.” It was impossible to ignore.  

Now it’s definitely time to jump off the fossil fuel wagon. Our generation must devote all its energies to raise awareness of how climate chaos is affecting us all, and to mobilise more people to support climate and environmental action. Alternatives must be pursued, and historical polluters must pay for all that they’ve taken from us – including our future. 

 

The post To keep its profits, Big Oil stole our future  appeared first on Climate Home News.

Moazzam Malik is managing director at the World Resources Institute and honorary professor at the UCL Policy Lab.

At COP29 in Baku in November, the world will come together to agree a new target for climate finance. The stakes are huge given record temperatures and heatwaves, floods and droughts wreaking havoc globally.  

Tackling climate change and its consequences – and supporting wider human development – needs urgent investment. But the international financial system is struggling to respond. Is it time now to agree a new framework for international climate and development finance? Can the G20 under Brazil’s leadership, and international leaders meeting at the United Nations in New York in September, prepare the ground for COP29?  

Almost 54 years ago, in 1970, the world came together at the UN to set a target for rich countries to support poorer countries. They promised 0.7% of national income as “official development assistance” (ODA) to improve economic outcomes and reduce poverty. At the Copenhagen climate negotiations in 2009, world leaders again came together and promised to mobilise an annual $100bn to finance climate action by 2020. They said this would be “new and additional” to development finance.  

Hurricane Beryl shows why the new UK government must ramp up climate finance

Since then, with the exception of a few Europeans, rich nations have failed to meet the 0.7% target. In 2022, ODA peaked at $211bn, or 0.37% of combined OECD national income. Almost 15% of this was used to finance refugee-related costs in OECD countries themselves. The climate commitment was met in 2022, two years late. Without ODA levels rising, the 33% of ODA classified as climate-related cannot reasonably be claimed as “additional”.   

 In practice, maintaining this distinction between climate and development finance has proved difficult. For example, is planting trees in an urban landscape a climate investment because it absorbs emissions, a health investment because it reduces street-level temperatures, or a biodiversity investment as it creates habitats for wildlife? 

 The challenge of navigating these distinctions means it is difficult to track commitments or secure meaningful accountability against promises made. And it leaves many countries juggling a false trade-off between investments for the planet and for their people.  

Trillions needed

It is absolutely clear, however, that financing for poorer countries needs to increase dramatically. Despite progress over recent decades, development needs remain significant, with major setbacks through the pandemic. The Independent High Level Expert Group on Climate Finance estimates, presented to the G20, indicate that by 2030 $5.4 trillion a year will be needed for development, climate and nature. Of this, $1 trillion a year will be required in external financing for developing countries for climate and nature alone, of which roughly half will need to come from international public finance.  

International public finance – including new and additional aid finance from rich countries – is needed to provide concessional resources for the poorest and most indebted countries. It is needed to anchor capital increases for international financial institutions that can leverage this at least ten-fold, in part by borrowing from private capital markets. These institutions, together with other development finance institutions and strong policy environments, are key to bringing in private lenders and investors, whether by reducing risk or helping develop investment pipelines. 

The Loss and Damage Fund must not leave fragile states behind

As well as additional finance, poorer countries need money that better responds to their needs. In recent years, the relentless cycle of summits has spawned dozens of initiatives. The landscape is fragmented, with over 80 funds or instruments in the climate space alone. It has become increasingly difficult for poor countries to navigate this. There is an urgent need for a moratorium on new funds and to agree principles and coordination mechanisms for all external finance – building on the aid effectiveness principles agreed in the 2000s. 

Binding 0.7% commitment?

Taking these elements together, is it time now to drop the voluntary framework of ODA crafted in the last century to meet the problems of the last century? Can countries come together now to agree a new framework for official climate and development assistance, with a binding commitment for rich countries to finally meet the 0.7% national income promise by, say, 2030?  

Such a target, negotiated under a UN framework, would double the flow of aid finance. That funding would anchor multilateral, public and private investments that are needed to close the financing gap. A negotiated process could also bring in emerging countries like China that already provide significant finance. It could clarify definitions and shift arrangements for monitoring climate and other development spend from the OECD to the UN to improve accountability. And it could begin to consolidate the range of instruments and make them more responsive to the needs of poor countries. 

With public finances under strain around the world, many will say this is simply unaffordable. But international polling indicates that people are willing to contribute 1% of their income to fight climate change. Will politicians have the courage to engage their electorates? And at the G20, in the UN, in the lead up to Baku and beyond, will they have the vision to collaborate internationally to agree a new deal that delivers both development and climate justice? 

 

The post The world needs a new global deal on climate and development finance appeared first on Climate Home News.

Ed’s note: Laurence Tubiana announced on July 22 that she would end her bid to represent the leftist New Popular Front (NFP) as France’s new prime minister, after failing to gain the backing of all four parties in the coalition. In an open letter posted on social media, she said she would return to the struggles that have always been hers – “the social emergency and the climate emergency” which need to be tackled hand in hand with civil society playing a key role.

Veteran climate diplomat Laurence Tubiana is in contention to be France’s new prime minister, with three left-wing parties backing her as a compromise candidate following inconclusive legislative elections. But infighting among the leftist political coalition that won the most seats means she has yet to be confirmed as its official choice.

France’s Green Party (EELV), Socialist Party (PS) and Communist Party (PCF) have proposed Tubiana – a key figure in securing the Paris Agreement on climate change – for the leadership role, representing the New Popular Front (NFP) coalition of left-wing parties. She has no formal political affiliation.

The head of the PS, Olivier Faure, said Tubiana “completely corresponds to what we are promoting”, praising her as the “architect of COP21 [where the Paris Agreement was adopted in 2015], commissioner for the climate convention, economist and diplomat engaged in both the environmental and social fields”.

But the biggest member of the NFP alliance, hard-left party France Unbowed (La France insoumise, LFI), is opposed to Tubiana getting the job, as they fear she is too close to the current President Emmanuel Macron and his centrist Renaissance party. “If this is the profile our partners are working on, I’ll fall off my chair,” said LFI coordinator Manuel Bompard on Tuesday, adding the suggestion was “not serious”.

In the July 7 elections, which resulted in a surprise defeat for the far right, no block won a majority of seats in the French legislature, known as the National Assembly. Of the 577 seats, the NFP left-wing alliance won 182, President Macron’s centrist party 168 and Marine Le Pen’s far-right National Rally (RN) 143.

On Tuesday, French President Emmanuel Macron accepted the resignation of current Prime Minister Gabriel Attal, although he will lead a caretaker government with a limited mandate until a new government is named.

The choice of the new prime minister is ultimately up to President Macron, but in order to govern, the PM must have the support of a majority of National Assembly deputies.

The left-wing parties have been searching for a joint candidate and, after the LFI’s suggestion of Huguette Bello was rejected by the Socialists, Tubiana’s name was put forward. Faure said Tubiana had been consulted before the suggestion was made.

UK court ruling provides ammo for anti-fossil fuel lawyers worldwide

Tubiana, he said, is “someone who has strong convictions, who has never compromised. She has always been on that side [the left], she has never deviated. This is a demonstration of her ability to stand her ground.”

But according to French newspaper Le Monde, the LFI suspects she is too close to Macron. He twice offered her the job of ecological transition minister, which she declined, and she recently co-signed an editorial calling for the the left-wing block to reach out to Macron’s centrist party in order to govern.

Climate pedigree

Tubiana started out at the French National Institute for Agricultural Research before setting up and leading an NGO working on food security and the global environment called Solagral through the 1980s and 1990s.

In 1997, then French President Lionel Jospin of the Socialist Party appointed her as his environmental advisor until he stepped down in 2022.

Tubiana next founded an influential French think-tank called the Institute for Sustainable Development and International Relations (IDDRI) before re-entering government as France’s lead negotiator in the run up to COP21, at which the landmark Paris Agreement was signed.

Since then, she has been an official United Nations champion on climate action, as well as president and CEO of the European Climate Foundation (ECF), which funds green think-tanks and media outlets including Climate Home News.

Where East African oil pipeline meets sea, displaced farmers bemoan “bad deal” on compensation

In these roles, she has pushed for governments at UN climate summits to agree to phase out fossil fuels, and called carbon capture and storage a false solution to the fossil fuel industries’ emissions.

In 2018, Macron appointed her as a member of France’s official climate advisory body, the High Council on Climate Change.

The ECF has recently worked alongside the French and Kenyan governments looking into global green taxes that could fund climate action.

Laurence Tubiana (left) celebrates the signing of the Paris Agreement in 2015 (credit: IISD.ca/Kiara Worth)

Environmental lawyer Arnaud Gossement said Tubiana’s appointment as France’s prime minister would be “a really good idea” as she is “a recognised climate specialist”.

Florence Faucher, professor of political science at French university Sciences Po, told Climate Home that Tubiana’s appointment “would certainly be interesting” but “I really doubt it [will happen]”.

The leftist coalition has said it hopes to find agreement on a candidate soon, with the new National Assembly set to meet for the first time on Thursday. One way the matter could be settled is by holding a vote among the new left-wing deputies.

On Wednesday morning, EELV deputy Sandrine Rousseau told French TV: “The discussions are not over – we will find a solution.”

(Reporting by Joe Lo; editing by Megan Rowling)

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A recent ruling by the UK’s top court will make it harder for new fossil fuel production projects to get approval across Europe and beyond – and is already influencing a separate court case this week over a new coal mine in England, climate campaigners and legal experts told Climate Home.

On June 20, the Supreme Court in London ruled that, in deciding whether to approve a new oil well in Horse Hill in southern England, the authorities must consider the greenhouse gas emissions from burning the oil, not just the much smaller volume of emissions from getting the oil out of the ground.

Announcing what has been called the “Finch ruling”, Judge George Leggatt said: “The emissions that will occur on combustion of the oil produced are ‘effects of the project’ because it is known with certainty that, if the project goes ahead, all the oil extracted from the ground will inevitably be burnt, thereby releasing greenhouse gases into the Earth’s atmosphere in a quantity which can readily be estimated.”

Where East African oil pipeline meets sea, displaced farmers bemoan “bad deal” on compensation

The ruling has already helped campaigners challenge a planned coal mine in Cumbria in the north of England, set to provide fuel for steel-making. The UK’s new Labour government said last week that the previous Conservative government had made an “error in law” when approving the mine and withdrew support for the mine’s developer in a separate court case being heard this week.

Campaigners against the Cumbria coal mine oppose bringing “zombie” coal back from the dead on July 16, 2024 (Photo: Friends of the Earth)

Speaking during a break in that case, Friends of the Earth lawyer Katie de Kauwe said the Finch ruling had strengthened the green group’s legal argument against the coal mine. The mine’s developer – which is still defending the case – did not assess the emissions from burning the coal and, in the wake of the Finch ruling, “we believe it’s very clear that was unlawful”, she told Climate Home.

The ruling is likely to resonate beyond the UK, she added, because it concerns regulations that are derived from European Union (EU) law. Although the UK has left the EU, many of its laws remain similar.

Greenpeace Norway campaigner Halvard Raavand said his colleagues had “a small celebration” in their Oslo offices when the Finch ruling was handed down, popping bottles of alcohol-free champagne. “It’s highly positive,” he said. “We’re very, very relieved – it shows it’s possible to take on fossil fuels and win.”

New South African government fuels optimism for faster energy transition

Like the UK, Norway is not an EU member but bases much of its law on that of the bloc. Greenpeace Norway is challenging in court its government’s approval of three new oil and gas fields, arguing that they failed to properly consider the climate impact from burning the fuels – known as scope 3 emissions.

Raavand said that, while Norway and the UK’s national courts are not related, Norwegian judges are likely to consider the UK’s judgement as a precedent. “Other courts across Europe might look to each other too,” he said.

Gina Gylver, head of Natur og Ungdom (Young Friends of the Earth Norway), and Frode Pleym, head of Greenpeace in Norway in Oslo District Court on November 28, 2023 (Photo: Rasmus Berg/Greenpeace)

Over in Amsterdam, Dutch Friends of the Earth campaigner Sjoukje van Oosterhout also celebrated the Finch ruling. “This verdict sets an important precedent,” she told Climate Home. “Judges worldwide will be looking at this.” She said it could boost campaigners’ legal challenge to Dutch company One Dyas’ plans to drill oil in the Wadden Sea, part of the North Sea.

Climate law professor Harro van Asselt said the UK ruling was “important” and “may well have implications for EU member states considering licensing fossil fuel projects”. He added that judges had made similar rulings in Australia and Norway in the last few years – although the Norwegian case, which influenced the Finch ruling, is under appeal.

While its ripple effects will be strongest in the EU and countries with similar laws, van Asselt said he would not exclude the possibility of the Finch ruling influencing court judgements elsewhere, in particular in common-law countries like Australia. Common law is a legal system that evolves based on judges’ rulings, generally found in former British colonies like the US, Canada and New Zealand.

De Kauwe of Friends of the Earth added that the Finch ruling could influence environmental impact assessments across the world.

Most of the oil and gas being extracted in Europe (red) or discovered, or under development (blue), is in the North Sea (Picture: Global Energy Monitor/Screenshot)

The recent change in government in the UK is also likely to hamper new fossil fuel production projects in the country. Keir Starmer’s Labour Party was elected on a manifesto promising to ban the method of gas extraction known as fracking and not to issue new licenses to explore new oil and gas fields or grant new coal mining licenses.

Gareth Redmond-King is the international lead at the Energy and Climate Intelligence Unit advocacy group. He told Climate Home that, at last year’s COP28 climate summit, British politicians heard from Global South government negotiators that politicians in their countries had cited the UK’s decision to issue new North Sea oil and gas licences as justification for pursuing their own fossil fuel exploration. That excuse has now been taken away, he said.

“Leadership works both ways,” he added. “The precedent set by this [Labour] decision makes it harder for fossil fuel companies to justify drilling in other countries. The UK is now the first G7 country to have pledged to put a moratorium on new exploration. That’s a big step.”

(Reporting by Joe Lo; editing by Megan Rowling)

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Hannah Bond is co-CEO at ActionAid UK.

This month has been unprecedented, even in a news cycle that has grown increasingly immune to ever-worsening climate catastrophes. After Beryl, a powerful category five hurricane, smashed its way across the Caribbean, an alarming report by the Copernicus Climate Change Service found that the planet has breached 1.5 degrees Celsius of warming for the twelfth month straight.  

For a new UK government pledging to take strong climate action at home, this must be a wake-up call for it to act on its historic responsibilities as a major global greenhouse gas polluter. These two alarming events alone show why it must put climate finance at the heart of its climate agenda as COP29 rapidly approaches. 

In Hurricane Beryl’s shadow, loss and damage fund makes progress on set-up

The Caribbean is one of the regions most at risk of climate change, with 70 percent of its population living or working in coastal areas surrounded by ever-warming seas that make hurricanes like Beryl more common and more violent. While a category five hurricane is unprecedented this early in the year, forecasters have already predicted that the region could experience up to seven severe hurricanes between now and the end of October.  

Extreme climate shocks are not only wreaking havoc, claiming lives, and destroying whole communities – they are also severely affecting the region’s tourism-dependent economies. Already it’s been estimated that the clean-up alone will cost tens of millions of dollars – a cost that doesn’t even begin to factor in what’s needed to rebuild destroyed communities still paying the price of previous disasters – crises that are gendered in their nature.  

Costly damage

Women and girls are more than 14 times more likely to be killed by climate shocks, according to Women’s Environmental Leadership Australia, while our own research found that women also face an increased risk of non-economic impacts such as gender-based violence and forced child marriage.

Hurricane Maria – the deadliest Atlantic hurricane to make landfall in the 21st century – cost the island nation of Dominica an estimated 225 percent of its GDP, while Hurricane Irma in the same year cost Antigua and Barbuda more than $136 million in damages, with the tourism industry representing around 44 percent of all losses.  

Even seven years on, the scale of the destruction has meant that communities are still rebuilding while dealing with hurricanes that worsen with intensity and frequency with each passing year. Yet, despite this, small island nations that have only contributed around 1% of all global carbon emissions, have struggled to unlock climate finance, accessing a mere $1.5bn out of the $100bn pledged in total to Global South countries.   

Negative debt spiral

To make matters worse, countries across the Caribbean have no choice but to turn to international financial institutions and take on eye-watering levels of debt to help communities regain their footing. Debt laden with restrictive repayment conditions further locks countries into a negative spiral – forcing governments to shape their economies and societies in order to service their debts.  

All this means that small island nations are left to play catch up, forever stuck on the back foot. Instead of spending the meagre levels of finance pledged to resilience-proofing their economies and communities, loans are used to service debts while interest rates for repayments globally remain at a record high.  

In its manifesto, Britain’s Labour Party spoke about “tackling unsustainable debt” as a “priority area” in its global commitments – indeed a positive step forward. But in power we need it to act and end the colonial debt system and support countries in the Caribbean and beyond move towards a just and climate resilient future. 

The Loss and Damage Fund must not leave fragile states behind

For a new government keen to show global leadership on climate, this year’s COP summit is a vital moment for the UK to play a much stronger role on climate finance than its Conservative predecessors. As the fourth-highest historic carbon emitter in the world, the UK has a moral and historic responsibility to address climate change, but its actions haven’t matched its words so far. 

During its election campaign, Labour failed to pledge new funds to address the huge gulf in climate financing for losses and damages, opting instead to simply deliver the previous government’s low-ball commitments to spend £11.6bn between 2021-2026. With nations set to meet at COP this year to define new annual climate finance commitments for Global South countries – known as the New Collective Quantified Goal (NCQG) – Labour needs to be much more ambitious in Azerbaijan. The future of communities on the frontlines of the climate crisis depends on it. 

Now, in the words of Grenada’s Prime Minister Dickson Mitchell, is not the time for countries like the UK to “sit idly by with platitudes and tokenism.” Now is the time for radical action and for the new UK government to stand up and deliver for the billions of people facing a runaway climate emergency. 

The post Hurricane Beryl shows why the new UK government must ramp up climate finance  appeared first on Climate Home News.

As Caribbean nations tallied the destruction caused by the passage of Hurricane Beryl, the board of the fund set up to compensate for such devastating loss and damage held its second meeting this week. 

“The level of damage is apocalyptic,” said Henrietta Elizabeth Thompson from Barbados, among the countries worst hit by the natural disaster, at the start of the four-day session in Incheon, South Korea.

The board needs to create a fund that “reflects the scale of the magnitude, of the risk, the damage and devastation faced by people across the world and the urgency required to respond to it,” she added.

But before the fund starts handing out any money in future, board members have to agree on procedural matters.

A name and a place

On the opening day, the Philippines was picked as the host of the fund’s board in a secret vote by members. The Southeast Asian nation defeated bids from seven other candidates: Antigua and Barbuda, Armenia, Bahamas, Barbados, Eswatini, Kenya and Togo. 

Selecting a host country was one of the most pressing priorities for this week’s meeting. It represented a first necessary step for the board to take up a legal personality and enter into formal agreements with the World Bank, set to host the loss and damage fund on an interim basis. 

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While the administrative staff of the fund will be based at the World Bank, the board will carry out some of its meetings in the Philippines in the future, likely in the capital Manila. The country’s proposal scored particularly high thanks to its abundant transport options and accommodation facilities and its visa free entry for short stays for most visitors, according to a background paper. 

A man stands in a home where the roof was ripped apart, in the aftermath of Hurricane Beryl, in St. Elizabeth Parish, Jamaica, July 5, 2024. REUTERS/Maria Alejandra Cardona

The somewhat thorny issue of what to officially call the fund also landed on the table in South Korea. 

For nearly all climate talks participants, it’s simply been the “loss and damage fund” since it was adopted at COP27, but the United States have made various attempts at a rebrand. At COP28 in Dubai, for example, then U.S. climate envoy John Kerry kept referring to the “fund for climate impact response” – a more neutral label that softened the suggestion of developed countries’ historical responsibility. 

In consultations ahead of the meeting, the co-chairs of the board collected various options, from the minimalistic “the Fund” to the highly technocratic “Fund referred to in decisions 1/CP.28 and 5/CMA.5”.

Ultimately, members decided to go with “Fund for responding to Loss and Damage”, abbreviated as FLD, without spending much time debating the matter. 

Beware the ‘billions’

Divisions cropped up when the discussion turned to the process of selecting the executive director (ED). Hoping to announce the name of the executive director at COP29 this November, the board had to agree at this session on the criteria for picking the fund’s boss, including the roles and responsibilities.

Several board members from developing countries wanted the ED’s job description to mention efforts to find additional money for the fund at the scale of billions. “If you have someone running a fund of 100 million, this is totally different from 10 billion, 55 billion, or 100 billion,” said Egypt’s Mohamed Nasr, “the scale of this fund is not confined to where it is”.

Where East African oil pipeline meets sea, displaced farmers bemoan “bad deal” on compensation

Countries have pledged around $700 million to the fund so far, with Italy, Germany, France and the United Arab Emirates among the biggest contributors. The United States has pledged only $17.5 million. South Korea pledged $7 million at this week’s meeting. The residual costs from loss and damage is projected to reach a total of $290 billion to $580 billion by 2030, according to a 2018 study.

But some developed country board members, including the US, rejected the proposal of including a reference to “billions”, according to observers.

“It is clear that developed nations…remain non-committal about scaling financial mobilisation,” said Harjeet Singh, global engagement director for the Fossil Fuel Non-Proliferation Treaty Initiative, who attended the meeting. “The initial commitments of a few hundred million dollars are merely a drop in the ocean compared to the real and escalating costs of climate change that developing countries endure,” he added.

Eventually, board members found a compromise wording. The ED will be asked to lead efforts to grow the fund’s resources “towards contributing to a response at scale to respond to climate-induced loss and damage”.

Global goal of tripling renewables by 2030 still out of reach, says IRENA

The recruitment process will now go underway with the goal of putting a shortlist of candidates in front of the board by the next meeting scheduled for September 18-20 in Baku, Azerbaijan.

Legal agreements

Between now and then, there will be little time for a summer break.

After approving last June the conditions of hosting the fund, the World Bank now has until August 12 to share with board members the draft text of the agreements detailing how that will work in practice. It will include things like provisions to handle the money and give access to recipients and the rules governing the relationship between the board and the World Bank.

Developing countries and civil society groups are eager to see guarantees that communities in hard-hit countries will be able to access funds directly without going through various intermediary agencies.

“Agreeing and certifying these agreements will be the most important decision at the next board meeting”, said Liane Schalatek, associate director of the Heinrich Böll Foundation in Washington who attended the board meeting. “The World Bank has shared an outline of what they will include, but we are talking about legal agreements so the devil is in the detail”.

The post In Hurricane Beryl’s shadow, loss and damage fund makes progress on set-up appeared first on Climate Home News.

The serene coastline of Chongoleani used to be a little-known paradise for local fishers and farmers just north of the Tanzanian city of Tanga.

But now it is becoming the end-point for the East African Crude Oil Pipeline (EACOP) where, after a journey of over 1,400 km through Uganda and Tanzania, the oil is stored and put onto ships bound for customers abroad.

EACOP is a joint venture between French multinational TotalEnergies, the China National Offshore Oil Corporation and the governments of Uganda and Tanzania. It plans to bring oil from the Tilenga and Kingfisher oil fields near Uganda’s Lake Albert, down past Lake Victoria and all the way east through Tanzania to the Chongoleani Peninsula.

While the $4-billion project promises economic growth and energy security for the region, it has sparked protests due to its negative environmental, economic and social impacts – which have been met by crackdowns on the part of the authorities in both countries.

East African climate activists have joined forces with their international counterparts in a campaign called #StopEACOP, arguing that the pipeline will exacerbate climate change by transporting 246,000 barrels of oil a day to customers to burn, releasing greenhouse gases. They also warn that it will displace thousands of people and endangers water resources, wetlands, nature reserves and wildlife.

The Ugandan government says that it has the right to exploit the country’s fossil fuel resources in order to fund much-needed economic development and is taking measures to reduce the project’s climate impact, such as heating the pipeline with solar energy. Wealthy nations like the US, Canada and Australia, meanwhile, are also increasing fossil fuel production.

Living “like town dwellers”

In Tanzania, Chongoleani residents said they had been warned by the village chairman and other ward leaders not to talk to journalists, but Climate Home spoke to two whose land had been taken over by the government for the pipeline and its port.

Without adequate compensation, they said they had been unable to buy a new farm in the area and have to buy food from the city rather than growing their own and selling the surplus.

Mustafa Mohammed Mustafa said his family used to own two farms in Kigomeni village, together about as big as eight football pitches. On these, they grew coconut, cassava, corn and groundnuts. They ate some of it and sold the rest.

But with the pipeline coming, the government-owned Tanzania Ports Authority took over their land, compensating them with 15m Tanzanian shillings ($5,700), which hasn’t been enough for them to buy new farmland in the area.

“We live like town dwellers these days,” said Mustafa. “We buy firewood, we buy charcoal, we buy lemons, coconut, cassava. We buy all of these supplies from the city centre. How is this alright?”

House prices soar

Part of the reason they cannot afford a farm, says Mustafa, is that EACOP’s arrival has increased the price of local land, as it is considered a project area with potential for business investment.

Villagers either put a high price on their land or hold onto it and only accept offers from the government or foreign investors, according to Mustafa, believing this will get them a better deal.

A sign for Chongoleani oil terminal (Photo: Climate Home News)

Mustafa blames the government for not giving them proper information from the initial stages of the project, nor a choice about whether they wanted to sell their property. Instead, he said, they were told that the project is of great economic importance for the country.

“I am angry that the government took advantage of our ignorance of legal matters and gave us a bad deal that we couldn’t argue against,” Mustafa said.

Sitting alongside Mustafa in Chongoleani village, Mdiri Akida Sharifu said he regrets selling his family’s land in Kigomeni but they had no other option.

“At the moment, we have very little faith that this will benefit us. When government officials came here, they encouraged us to give up our land with the promise that once the project started, we would be given priority in getting jobs. But now that we’ve given up our land, we even have to buy lemons from Tanga town,” he said.

Countrywide compensation battles

Elsewhere along the pipeline’s routes, landowners have complained about unfair compensation, saying the government paid them in 2023 using price estimates made in 2016, ignoring seven years of inflation. Kamili Fabian from the Manyara region told local paper Mwananchi that he was paid less than a third of his land’s value. “Where is the justice in that?” he asked.

The government says it uses national and international standards to compensate people fairly. Energy minister Doto Biteko has said 35bn shillings ($13m) had been allocated for this purpose and the government had built 340 new homes for relocated people.

Reporting on these issues is a challenge. When Climate Home visited the coastal village of Putini, a man called Mahimbo – who would only give one name – refused to comment on the compensation process and said local leaders had told the villagers not to speak to journalists about the pipeline.

But he took Climate Home to the office of village chairperson Abdallah Said Kanuni to seek permission to comment on the record. “We have been given clear instructions to neither speak with journalists nor allow them to interview villagers on matters relating to the pipeline, unless the journalists have official permits from the regional [government] office,” Kanuni said.

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Compensation battles are playing out far beyond this area.  A Total spokesperson told Climate Home nearly 19,000 households have been compensated for the effects of the pipeline and the associated Tilenga oil field on them and about 750 replacement houses have been handed over.

But Diana Nabiruma, communications officer for the Africa Institute for Energy Governance (AFIEGO), said her organisation had spoken to hundreds of people who had received compensation and had yet to meet any that said it was adequate.

She said a major problem has been that people were paid in 2023 based on their land’s value in 2019. As in Chongoleani, the price of land rose in those four years, partly because of EACOP and the promise of paved roads. Many people have not been able to replace the property they lost, she said.

Ugandan riot police officers detain an anti-EACOP activist in Kampala, Uganda, on October 4, 2022. (REUTERS/Abubaker Lubowa)

Nabiruma added that many people want to seek top-up compensation but are scared – and unable to afford – to challenge EACOP and the government in court. In Uganda’s capital Kampala, police have beaten and arrested activists protesting against the pipeline.

The Total spokesperson said EACOP will improve living conditions, adding that Total complies with local regulations and international standards and there is a fair grievance management mechanism in place for local people.

An EACOP spokesperson said that since last year, the project has provided households affected by leasing of their land in Chongoleani with food baskets and cash transfers, adding that the villagers are given preferential access to unskilled or semi-skilled work on the project.

The Tanzania Ports Authority did not respond to a request for comment.

(Reporting by CHN staff and Joe Lo, editing by Joe Lo and Megan Rowling)

The post Where East African oil pipeline meets sea, displaced farmers bemoan “bad deal” on compensation appeared first on Climate Home News.

Despite growing at an unprecedented rate last year, renewable energy sources are still not being deployed quickly enough to put the world on track to meet an international goal of tripling renewables by 2030, new data shows.

At the COP28 climate summit in Dubai in 2023, nearly 200 countries committed to tripling global renewable energy capacity – measured as the maximum generating capacity of sources like wind, solar and hydro – by 2030, in an effort to limit global warming to 1.5 degrees Celsius.

According to figures published on Thursday by the International Renewable Energy Agency (IRENA), renewables are the fastest-growing source of power worldwide, with new global renewable capacity in 2023 representing a record 14% increase from 2022.

But IRENA’s analysis found that even if renewables continue to be deployed at the current rate over the next seven years, the world will fall 13.5% short of the target to triple renewables to 11.2 terawatts.

A higher annual growth rate of at least 16.4% is required to reach the 2030 goal, IRENA said.

Renewable electricity generation by energy source

Chart courtesy of IRENA

IRENA Director-General Francesco La Camera warned against complacency. “Renewables must grow at higher speed and scale,” he said in a statement, calling for concrete policy action and a massive mobilisation of finance.

The United Arab Emirates’ COP28 President Sultan Al-Jaber called the report “a wake-up call for the entire world” and urged countries to add strong national energy targets to their updated national climate action plans (NDCs) due by early next year.

Geographical disparities

Bruce Douglas, CEO of the Global Renewables Alliance, a coalition of private-sector organisations working on renewable technologies, highlighted imbalances in the global picture of record renewables deployment.

“We shouldn’t be celebrating,” he said. “This growth is nowhere near enough and it’s not in the right places.

Africa saw only incremental growth of 3.5% in new renewables capacity last year compared with around 9% growth in Asia and North America, and 12% growth in South America.

And despite those higher increases in Asia and South America, data released last month by international policy group REN21 shows that less than 18% of renewables capacity added in 2023 was in Asia (excluding China), South America, Africa and the Middle East, despite these regions collectively representing nearly two-thirds of the global population.

A simmering conflict over one of Latin America’s biggest wind hubs confronts Mexico’s next president

Slow growth in Africa is failing to live up to the huge potential for renewables on the continent, whose leaders last year pledged to scale up renewables more than five-fold by 2030, to 300 gigawatts.

“The justice piece is huge and too often overlooked,” Douglas said, adding that finance is “by far” the biggest challenge to getting renewables off the ground in the Global South.

Africa, for example, has received less than 2% of global investments in renewable energy over the past twenty years, according to IRENA.

“That’s not acceptable in terms of an equitable transition,” Douglas said, noting that when countries miss out on renewables financing, they are also missing out on the development benefits, jobs creation and improved access to affordable energy that clean energy can bring.

Finance not flowing

The scarcity of financing for renewables in developing countries is in large part due to investors being put off by the high borrowing costs and risk profiles of many such markets, Douglas said.

William Brent, chief marketing officer at Husk Power Systems, which installs and runs solar micro-grids in rural communities in Nigeria and Tanzania, explained: “Most sources of big capital in the West seem largely uninterested in Africa.”

“Despite being home to some of the fastest growing economies in the world, Africa is perceived as having a much higher risk profile and returns that cannot match the Americas, Asia or Europe,” Brent said.

New South African government fuels optimism for faster energy transition

Sonia Dunlop, CEO of the Global Solar Council, a body that represents the solar industry, told Climate Home that financial incentives provided by the public sector could help de-risk renewables projects for private investors.

“We need to get MDBs (multilateral development banks) leaning into big renewables projects and taking on some of the risk, which can then attract private finance,” she said, adding that governments in all countries must also play their part in creating policy environments that support and incentivise investment.

Grids and permitting barriers

Grids and permitting for renewables projects also pose major practical challenges, particularly in developed countries.

According to REN21, the potential renewable capacity that is ‘stuck’ waiting to be connected to grids around the world is equivalent to three times the amount of wind and solar power installed in 2023.

For Dunlop, the solution to grid congestion is more storage – batteries for short-term storage and other technologies for longer-term storage, such as storing electricity as heat or pumping water uphill that can then be released to produce hydroelectricity.

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Complex planning processes can also mean it takes longer to get planning permission for projects, such as wind farms, than it does to build them – if they even get approval at all.

For Douglas, something as simple as hiring more staff to process project applications in grid and planning authorities could begin to unlock thousands of gigawatts of renewable power.

Energy efficiency overlooked

Although renewables are growing faster than any other energy source, companies and governments are boosting investments in fossil fuels at the same time.

The use of fossil fuels for electricity generation continues to grow, while renewables only provide 6.3% of the energy required for heat, which is mainly used in buildings and industrial operations.

Electricity generation by energy source

Chart courtesy of IRENA

“We are not moving fast enough to fully meet the staggering rise in energy demand, let alone replace existing fossil fuels,” said REN21 Executive Director Rana Adib in a statement on the group’s recent statistics.

Another – neglected – solution is energy efficiency, experts said. The Global Renewables Alliance is running a ‘double down, triple up’ campaign, which calls on countries not only to triple renewables by 2030, but also to double the rate of improvement in energy efficiency, to reduce emissions and help stem energy demand – another goal countries signed up to at COP28.

“We absolutely need that doubling of energy efficiency as well,” said Dunlop. “That isn’t discussed enough.”

(Reporting by Daisy Clague; editing by Megan Rowling)

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Adrianna Hardaway is senior policy advisor for climate with humanitarian aid agency Mercy Corps.

As the Loss and Damage Fund’s board meets this week, it is addressing key issues such as selecting a host country, how to disburse its financial resources, and lobbying for more funding from donors. However, the agenda currently doesn’t address the challenges communities in fragile contexts will face in accessing the fund. This oversight mirrors a recurring pattern in international climate talks, where the needs and realities of fragile and conflict-affected situations (FCS) often receive little to no attention. 

FCS, as defined by the World Bank, experience high levels of institutional and social fragility and violent conflict. These nations, which include Afghanistan, Mali and Niger to name a few, often face extreme climate hazards and struggle to cope due to weak institutions, poor governance, and ongoing conflict.  

Together, fragility and climate risks make these countries particularly vulnerable to the effects of the climate crisis. Because of their vulnerability, fragile contexts are frequently deemed too risky for climate finance investments, as project partners find it challenging to operate and donors are concerned about their return on investment.   

A simmering conflict over one of Latin America’s biggest wind hubs confronts Mexico’s next president

While the Paris Agreement prioritizes Least Developed Countries (LDCs) and Small Island Developing States (SIDS) for international climate finance, LDCs and SIDS with additional challenges like violent conflict and fragility face barriers, receiving significantly less financing than more stable regions.  

Mercy Corps’ analysis reveals that the 10 most fragile states received only $223 million in climate adaptation financing in 2021, less than 1% of total flows. Without prioritizing the unique needs of fragile contexts, the Loss and Damage Fund risks excluding these climate-vulnerable communities once again. 

Action needed from the start

There are no references to fragility or conflict in the COP decision that established the Loss and Damage Fund or the Governing Instrument, which sets the Fund’s rules and practices. Additionally, there is no mention of how fragile or conflict-affected places in more “stable” countries will receive financing through the Fund.  

Fragility and conflict can limit how communities and institutions across a particular country respond to climate impacts. For example, in Northern Kenya, where Mercy Corps implements several climate adaptation and food security programs, unpredictable rainfall affects water resources, creating pressure on pastoral livelihoods and leading to conflict over water and pasture. Relatively weak institutions at the local government and community level lack the capabilities and resources to plan and implement climate adaptation interventions.

If the Loss and Damage Fund does not address how to support both fragile states and contexts like Northern Kenya now, it will be hard to incorporate these considerations later.   

New South African government fuels optimism for faster energy transition

Advocating for specific challenges in fragile contexts during the Fund’s initial setup is crucial, as evidenced by Mercy Corps’ experience with the multi-billion-dollar UN-backed Green Climate Fund (GCF). Although the GCF has made strides to consider communities affected by climate change, conflict, and fragility through its policies and programs, including endorsing the UAE’s Declaration on Climate, Relief, Recovery, and Peace at COP28 last year, it still struggles to effectively serve communities in fragile contexts.  

Prioritizing finance for those who need it most

At the second meeting of the Loss and Damage Fund’s board this week, its members should take the following steps to realize the Fund’s promise and ensure loss and damage financing reaches those who truly need it most: 

1. Designate a board member for fragile and conflict-affected situations: This idea, initially proposed by Afghanistan for the GCF, was never fully realized. Board Members play an important role in shaping the policies and procedures of the Loss and Damage Fund and in the future, approving projects. Additionally, an active observer from civil society can represent the views of FCS at Board meetings.
2. Develop a framework to identify “particularly vulnerable” countries: The Loss and Damage Fund board will need to determine which countries are particularly vulnerable to climate change and thus, eligible to receive financing. To ensure a comprehensive understanding of vulnerability, the LDF must include fragility metrics such as economic, political, social cohesion, and security dimensions in any forthcoming vulnerability framework. 
3. Develop and approve operational policies and frameworks for fragile contexts: To effectively utilize loss and damage finance, the Fund should adopt policies and tools that allow fragile contexts to flexibly respond to shocks and disrupt the climate-conflict cycle. Mercy Corps’ Assessment for Adaptation to Conflict and Climate Threats, for example, examines the dynamics between climate change and conflict, and identifies entry points and approaches to interrupt the cycle of fragility. In Mali and Niger, where we piloted this tool, program participants identified the rainy season – especially the beginning and the end – as the time when many of the land-based conflicts take place between farmers and herders. It is being used by the UK government to plan ways to resolve tensions and support women who are particularly vulnerable.   

The creation of the Loss and Damage Fund was a significant victory for nations that have contributed the least to climate change yet bear the brunt of its impacts. The board of the Loss and Damage Fund now has a critical opportunity to ensure inclusion and equity by guaranteeing that all communities, especially those in fragile and conflict-affected states, have access to the necessary funding to address loss and damage. It is imperative that no one is left behind in this global effort to combat the climate crisis.

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Following years of violence surrounding one of Latin America’s largest wind energy projects, local residents in southern Oaxaca state are cautiously optimistic that Mexico’s incoming president understands their anger over what they call poor consultations and environmental damage.

Claudia Sheinbaum will be sworn in as Mexico’s first female president on October 1 with a broad electoral mandate. Before entering politics, she was a scientist studying renewable energy, including the ongoing conflict over wind farms on the Isthmus of Tehuantepec. The tensions have spawned deadly violence, and lawsuits from Oaxaca City to Paris.

One of Mexico’s windiest areas, energy companies have flocked to the strip of land between the Gulf of Mexico and the Pacific Ocean since 2006, making it one of the most important locations for renewable energy in the world’s 13th largest country.

Supporters say projects like this are crucial for transitioning Mexico away from fossil fuels and creating green jobs based on renewable energy. Opponents are concerned about wind turbines harming migratory birds, land access, revenue sharing and – most importantly – problems related to Indigenous community consultations over the investments.

Bloody conflict

In several cases, anger sparked by the projects has turned bloody, including at least 15 killed in a dispute over the wind farms in 2020.

Today, more than 2,000 turbines cover the land, according to data from Amnesty International, leading to “dispossession” and violations of the “collective rights of Indigenous communities”, the rights charity says. Hundreds of millions of dollars have been invested in the projects, mostly by European energy companies.

Anti-wind farm activist Guadalupe Ramirez poses for a picture inside her home in Union Hidalgo, Mexico. (Leon Pineda/Climate Home)

Guadalupe Ramirez is an Indigenous Zapotec farmer who grows pumpkins and corn on a communal plot in the town of Union Hidalgo, a hub for wind energy.  She told Climate Home that “at first, they (wind companies) said they would just take a little piece of the land but they ended up destroying a big piece”.

“The companies started dividing families,” said Ramirez, who also complained about local environmental disruption from the projects. “We were very mad about this. I have hope with Sheinbaum.”

Ramirez expects the new president and former Mexico City mayor may have some unique insights on the problems her community faces. The academic turned politician co-authored a study analysing the unrest over wind projects in Oaxaca state.

“Although wind energy has numerous benefits, [the] concerns of the local people have to be taken seriously,” Sheinbaum wrote in 2016. “Far from the old-fashioned thinking of looking at social acceptance of renewable technologies as a NIMBY (not in my backyard) problem… information, consultation, and participation are key elements to the success and acceptance of wind farm projects.”

Sheinbaum celebrates her election victory in Mexico City on June 3, 2024. (REUTERS/Raquel Cunha TPX)

Those are exactly the elements Ramírez and many of her neighbours say were missing when they were first approached by energy companies back in 2009.

From there, the conflict escalated, said Carlos Lopez, who has experienced it firsthand. As an activist and community journalist in Union Hidalgo, he said he was threatened by masked men toting automatic weapons. He suspects they were hired by landowners or corrupt local politicians who wanted windmills erected in the area in order to receive rent from companies.

“They were killing people here,” Lopez told Climate Home, during an interview in a crumbling building which had been a community radio hub in Union Hidalgo as it underwent renovations.

In 2013, for instance, he said local fishermen and hunters were working in an area near Union Hidalgo coveted by wind investors, when they were accosted by masked men with heavy weapons. The fishermen then fled to the radio station, so Lopez could broadcast what was happening.

Deadly violence

“They [investors and their supporters in government] don’t respect the vision and culture of the original peoples of the Isthmus and want to push through these megaprojects,” said Lopez, sitting on a plastic chair  next to pictures of Che Guevara and posters for protest movements.

Posters are displayed inside a community radio station in Union Hidalgo (Picture: Leon Pineda)

Residents later set up barricades around six areas they considered sacred sites to stop encroachment by companies, he added, as threats continued and violence simmered.

In 2020, for instance, at least 15 people were killed in San Mateo del Mar, a coastal community in Oaxaca and a hotbed of Indigenous opposition to wind projects. Campaigners said they were stopped at a coronavirus checkpoint and shot at by supporters of a local mayor who backed the wind projects.

Last month, a French court allowed a civil case against the energy giant EDF to proceed after Indigenous people in Oaxaca argued the company failed to prevent violence and intimidation of wind farm opponents.

The violence has quietened down in the past few years due to national government policy changes and several court cases limiting new wind investment in the area, said local residents, including both critics and supporters of the projects.

Opposition is “political”

Not everyone in Union Hidalgo is opposed to the wind farms. On a rainy Saturday on his mango, avocado and guava farm, Dueter Toledo Ordonez told Climate Home: “These projects aren’t bothering me.”

“Some people don’t like it,” he said, with wind turbines in the distance, “but it’s all political … It’s clean energy; it’s the future.”

His father, who farms a nearby plot, had a contract with an energy company to install windmills on his land, added Ordonez, “but something happened with the politics and people said they were polluting” so the company stopped construction.

Deuter Toledo Ordonez tends to crops on his land in Union Hidalgo on June 8, 2024. (Photo: Leon Pineda)

Juqulia Elizabeth Lopez Ruiz, a spokesperson for the secretary of renewable energy for Juchitan district, told Climate Home the 28 wind parks in Tehuantepec bring a lot of jobs.

But she acknowledges some farmers aren’t happy about the projects. “To respond to these concerns: we have Indigenous assemblies where we decide the correct way to act with these wind farms,” she said.

As for concerns raised by wind farm opponents that some municipal lawmakers have been corrupted by energy companies, Lopez Ruiz said this was “just speculation”.

“At one point there was a candidate who had the support of the companies but he stopped being a candidate,” said the local government spokesperson, without naming the politician or discussing specifics of the case.

Saudi visa crackdown left heatwave-hit Hajj pilgrims scared to ask for help

Eduardo Martinez Noriegua is  an ecologist with the environmental group Ecological Forum in Juchitan, which has conducted some monitoring around the projects.

He said local anger over potential disruptions to migratory bird populations from wind farms, increased litter, and soil and water contamination from the oil lubricating the turbines is justified.

“I believe the government is being very permissive with the quality control for these operations,” he said.

Energy nationalisation

When Sheinbaum takes office, she will be leading a country that gets nearly 80% of its electricity from fossil fuels and is one of only two G20 countries without a commitment to reach net-zero carbon emissions.

Her key political backer – the popular current president, Andres Manuel Lopez Obrador (AMLO) – invested heavily in new oil infrastructure, and asserted greater national control over the electricity market.

Mexico nationalised its oil industry in the 1930s, and AMLO has taken a similar approach to key materials for the energy transition, cancelling lithium mining concessions granted to foreign firms and creating a new national company to extract the critical mineral.

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The Federal Electricity Commission (CFE), a state agency, was also given more control over power generation and distribution.

Sheinbaum has signalled she will continue her predecessor’s policies of state dominance in the energy sector.

Despite the government’s “quest to nationalise electricity generation”, Marilyn Christian, an advisor to the Mexican Centre for Environmental Law, an advocacy group, said the CFE doesn’t currently have the technology to rapidly increase renewable power production. Instead, as demand grows, it has turned to fossil fuels to generate electricity.

“Emissions in the electricity sector … have been on the rise since 2021 – that is bad news for our commitments on reducing carbon emissions,” she said. “We have many expectations with Claudia Sheinbaum. She has a solid academic background in environmental issues … [but] Claudia is also a politician. She has a clear position and ideology.”

Christian said she supports the idea of public control over electricity in principle, an effective option in some European countries, but it will only work if the CFE has the capacity to deliver.

Back in Union Hidalgo, most wind farm critics said their views wouldn’t change if a public institution like the CFE, rather than private companies, managed the projects, posing another complication for generating more renewable power.

But some of the changes recommended by Sheinbaum in her study on Oaxaca – including deeper consultation with communities living nearby and taking their concerns seriously – could help smooth things out, Ramirez said.

“We are not totally against this kind of green energy,” she said as hundreds of white windmills whirred in the distance. “It’s about how they do business.”

(Reporting by Chris Arsenault and Philippe Le Billon, editing by Joe Lo and Megan Rowling)

The travel and reporting for this story were funded by a grant from the Global Reporting Centre and Social Sciences Humanities and Research Council.

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South Africa’s energy transition is likely to accelerate after voters forced the ruling African National Congress (ANC) into a power-sharing arrangement for the first time, analysts say.

On Sunday President Cyril Ramaphosa appointed ministers from his ANC party and the pro-business opposition Democratic Alliance (DA) to serve in his “government of national unity”.

In one of the most significant changes, Ramaphosa took away pro-coal minister Gwede Mantashe’s control of the energy sector. Hilton Trollip, a Cape Town University energy researcher, told Climate Home that Mantashe had previously “paralysed” the government’s renewables programme.

The Department of Mineral Resources and Energy has now been split in two. Mantashe is only keeping control of mining and hydrocarbons, while the ANC’s Kgosientsho Ramokgopa, previously the electricity minister, will now be in charge of setting energy policy with a wider mandate. 

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Trollip said it was unclear if Ramokgopa would boost renewables as he has not held much power until now. But there is now a better chance that Mantashe’s highly contentious Integrated Resource Plan – which envisages a slowdown in renewable energy investments and a switch to gas-fired power – will be revised, he added.

DA’s Dion George is the new environment minister replacing Barbara Creecy, who has been moved to transport.

Creecy played an active role in several COP climate talks, most importantly successfully proposing a global goal on adaptation at COP26 in 2021. 

JETP talks

Owing to its heavy reliance on coal for electricity, the country is Africa’s biggest emitter of greenhouse gases. 

That made it a prime candidate for a world-first funding agreement, backed by wealthy nations, aimed at ramping up investments in clean energy while also protecting those reliant on the fossil fuel sector.

But two and a half years after it was announced, the now $9.3 billion “Just Energy Transition Partnership” (JETP) has made little tangible progress on the ground. 

Meanwhile, as the country grapples with rolling blackouts, state-owned utility Eskom has announced plans to delay the decommissioning of at least three of its coal-fired power plants by several years  – raising the risk that funding partners will walk back on their offers.

A general view of Kendal Power Station, a coal-fired station of South African utility Eskom, in the Mpumalanga province. REUTERS/Siphiwe Sibeko

Kevin Mileham, the DA’s shadow minister of mineral resources and energy, told Climate Home that South Africa’s JETP “will need to be accelerated” as the country is currently not on track to meet global climate goals.

The party wants to see “a rapid roll out” of the programme which will require improved dialogue with the wealthy European and North American countries funding part of it, he added.

It also wants to advance the implementation of a climate change adaptation strategy and believes South Africa needs to do a better job at tracking and reporting its efforts to reduce carbon emissions, Mileham said.

Much of the progress will hinge on the government’s ability to form a united front on foreign policy and forge an effective relationship with the international funding partners.

The ANC and DA have regularly clashed on international affairs, such as the country’s support to Palestine.

They will need to “reconcile their differences [on foreign policy] and come to a shared understanding on international multilateral processes,” says Happy Khambule, energy and environment policy director at Business Unity South Africa, a business lobby group.

Tensions over private sector role

He added that private companies, which will have a significant role in the transition, want to see policy certainty enhanced in the months ahead.

The group is awaiting the finalisation of the Electricity Regulation Amendment Bill, which promises to open up the electricity market and put an end to Eskom’s longstanding monopoly, and the Integrated Resource Plan.

Comment: Africa cannot afford to be complacent about solar radiation management

Meanwhile, the DA’s preference for greater private sector involvement in the energy transition could create fresh tensions with key stakeholders. Left-wing adversaries often deridingly label the DA a “neoliberal” party.

The country’s largest trade union group COSATU wants the newly separated energy department to “stop the privatisation of electricity and energy”, and instead promote state and social ownership models.

“We don’t expect major shifts with regards to the just transition, but rather a more focused approach on its implementation, in particular to make sure workers and communities and value chains are not left behind,” a spokesperson for the organisation told Climate Home.

The just transition should be overseen by multiple government departments given “the triple crisis” of unemployment, climate change and energy shortages, they added, suggesting that, for example, the finance ministry should raise spending on climate-focused public employment schemes.

(Reporting by Nick Hedley, editing by Joe Lo and Matteo Civillini)

The post New South African government fuels optimism for faster energy transition appeared first on Climate Home News.

Saliem Fakir is the executive director of the African Climate Foundation. Shuchi Talati (PhD) is the executive director of the Alliance for Just Deliberation on Solar Geoengineering.

Global temperatures have crossed 1.1oC above pre-industrial levels. They are likely to cross the 1.5oC Paris Agreement threshold within the next decade, and despite countries’ pledges to reduce the greenhouse gas emissions entering the atmosphere, the world is likely to breach  2oC of warming.

Moving beyond these thresholds significantly raises the threat of irreversible tipping points around the world. 

While scientists insist that decarbonization efforts, net-zero targets, and wide-scale adaptation must be prioritized, the Global Stocktake Report notes that our emissions keep rising. Given this race against time, controversial approaches are being put on the table, such as solar radiation modification (SRM, also known as solar geoengineering), a potential stopgap measure against worsening climate change. 

Still in its research infancy, SRM refers to large-scale, intentional interventions that increase the amount of sunlight reflected back into space to counteract some types of climate change impacts.

If ever used, it is proposed as a range of relatively fast-acting approaches with potential global benefits, but even this may well be debatable. Governance over the use or non-use of these technologies needs a global approach that requires deep public understanding. 

Untangling uncertainty

SRM technologies offer two sides of the same coin –  potential benefits include reducing global temperature rise and secondary benefits such as slowing the rate of sea level rise, and limiting harm to the poles, but potential risks include impacts on precipitation patterns, agriculture, and biodiversity. 

Uncertainty exists in both the science and the social response.

The usefulness of SRM in the context of climate change is deeply dependent on how science unfolds, who the decision makers are, who has access, willingness, capacity and resources required to master these technologies and the context within which it exists.

Nations fail to agree ban or research on solar geoengineering

To be clear, SRM is not a solution to climate change. It can only be considered alongside robust decarbonization and adaptation efforts. Given the early stages of the development of SRM, more information, discussion, and open-minded conversations with broad groups of stakeholders are needed.

We are at a clear inflection point for the field where momentum is clearly shifting in funding, research, media, and governance. However, much of the narrative about SRM is currently being built in the Global North, where the majority of research and funding on this subject exists.

African voices unheard

The use, or non-use, of this suite of technologies will have global impacts. It is all the more important for the Global South to be actively and effectively engaged with SRM research and governance, due to its potential impacts on their climate vulnerable communities. 

Despite Africa’s low contributions (< 4%) to global greenhouse gas emissions, it suffers disproportionate climate change impacts. Its agrarian-dependent economy  necessitates an elevated interest in changing local and regional weather patterns; there are strong incentives for Africa to better understand the physical and socio-economic implications of SRM. 

African research and policy perspectives on SRM are starting, highlighting several gaps that exist in understanding how these technologies may benefit or harm the continent’s climate efforts.

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One key example is the recent deliberation on a SRM resolution at the Sixth United Nations Environment Assembly (UNEA-6). The Africa Group (AG) functioned as a bloc during the deliberation, and proposed the establishment of a publicly accessible repository of existing scientific information, research, and activities on SRM, including submissions from member states and stakeholders.

While the resolution did not reach consensus, the deliberations signified an important shift that African nations are starting to weigh in on the issue. 

Building awareness

But more resources, expertise, and engagement are necessary to generate African knowledge and capacity across a range of sectors to contribute to – and start leading – SRM deliberations in the international sphere.

Policymakers across Africa need access to relevant information and an informed civil society sector to shape decisions. Diverse perspectives on whether and how to consider SRM, with grounding and knowledge in the near term, can help African nations prepare for the critical decisions to come.   

Building awareness on this topic, with unbiased information rooted in science and based in the African context, will provide answers from both physical and social science perspectives for inclusive and fair SRM decision-making.

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Driving demand to focus on specific issues that Africans are raising, and building their capacity to govern through their key government and NGO institutions, is necessary to enable informed deliberations on SRM regulations at national, regional and international levels. 

This summer, the African Climate Foundation and The Alliance for Just Deliberation on Solar Geoengineering are kicking off a series of Africa-focused workshops to build knowledge around the science, governance, and justice dimensions of SRM.

The first two in the series will highlight African scientists and thought leaders and are virtual and open to the public.

We hope to catalyze interest and engagement across the African continent, widen public discourse on SRM and ensure these discussions go beyond certain circles of experts and the negotiating community. Debates on SRM need to reflect the full spectrum of interests in Africa, and it is time for voices across the continent to coordinate and coalesce.

The post Africa cannot afford to be complacent about solar radiation management appeared first on Climate Home News.

A Saudi visa crackdown left Hajj pilgrims feeling unable to ask for help in a killer heatwave, survivors and the families of the dead told Climate Home.

For the first time this year, Saudi authorities required all pilgrims to wear identification on a “Nusuk Card” around their neck, allowing security forces to check they had the Hajj visa. Banners and phone messages warned against attending Hajj without this visa and many breaching these rules were deported.

A government-controlled Youtube channel said before the Hajj that the Nusuk Card “enables access to urgent medical care” and one survivor told Climate Home that, despite feeling tired and dizzy, he felt unable to ask for medical help for fear of punishment and deportation because he only had a tourist visa.

Temperatures in Mecca reached 51.8C this year, an unusually high figure which Climatemeter scientists have said was “mostly exacerbated by human-driven climate change”.

Over 1,300 people died during the heatwave and more than four-fifths of them were without official permits, according to Saudi Health Minister Fahad Al-Jalajel. Foreign governments have largely blamed travel agents for facilitating these irregular pilgrimages, while the Saudi authorities and climate change have mostly escaped blame.

One of those without a permit was Ibrahim, a retired Egyptian head teacher. To dodge visa checks, he walked 19 km in the baking heat to Arafat, a sacred hill near Mecca. He told Climate Home that he had asked buses carrying pilgrims with permits to stop and take him “but no one stopped, no one helped us”.

#No_Hajj_without_a_permit because services are directly linked to it, and accessing the Holy Sites without a permit is a violation that merits legal consequences.#Makkah_and_Madinah_Eagerly_Await_You#No_Hajj_without_a_permit#Hajj_1445H pic.twitter.com/aapODeC018

— Ministry of Hajj and Umrah (@MoHU_En) May 22, 2024

Fahad Saeed, a Pakistani climate scientist with Climate Analytics, told Climate Home: “The Hajj pilgrimage is a profound reminder to every Muslim of equality in the eyes of God. Yet, the disparity in the safety of pilgrims based on their financial means starkly contradicts this spirit of equality.”

Two-tier system

The city of Mecca is where the founder of Islam, the Prophet Muhammad, was born and lived most of his life. One of the religion’s five central pillars is that all believers should, if they’re healthy and can afford it, visit the city at least once on a pilgrimage known as Hajj and carry out a series of rituals.

Since Muhammad’s time, Islam has expanded across the globe and is now the religion of about a quarter of the world’s people. As the Hajj takes place for a single five-day period each year, there are far more people wanting to take part than the city can handle. Over 1.5 million pilgrims arrived in Mecca for the event last June. 

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Official visas to enter Mecca during the Hajj are rationed through a lottery system, working with specialist travel agencies. But some travel agents also advise pilgrims on how to enter Mecca without an official visa.

That was how Ibrahim, who had been saving up for the Hajj for thirty years, got to Mecca. He did not want to reveal his second name out of fear of the Saudi government’s punishment.

He told Climate Home that he couldn’t afford an official visa 500,000EGP ($10,000). He entered Saudi Arabia with a normal tourist one and, with the help of a tourism company, he was able to bribe his way through checkpoints into Mecca.

He found accommodation in the suburb of Al-Aziziyah but authorities quickly raided the area before the start of Hajj. Many pilgrims without official visas were fingerprinted and deported but Ibrahim was just driven out of the city towards Jeddah.

For 1,000 Riyals ($267), he found a taxi to take him back to Al-Aziziya where he hid until the first day of Hajj. This is the pilgrimage’s most important day when pilgrims spend a day next to Mount Arafat, where Prophet Muhammad delivered his Farewell Sermon. There, they pray and ask for forgiveness.

Most pilgrims get buses from Mecca to Arafat but, worried about soldiers searching these buses, Ibrahim and his companions made the 19 km journey on foot. When he got there, the area was crowded and the temperature reached nearly 50C (122F).

The 62-year old said he began to feel exhausted and dizzy even though he was not fasting that day. “My foot, which had undergone three surgeries before, felt like a piece of fire. I could not walk”, he said.

Standing up in the heat lessens the blood flow to the brain, which can cause fainting but also heart or kidney failures, explained Mike Tipton, a British professor who advises athletes and soldiers on heat.

Muslim worshippers make their way to cast stones as part of a symbolic stoning of the devil ritual on June 18, 2023. (Photo: Medhat Hajjaj/apaimages)

Ibrahim said that getting water for him was difficult and that he did not want to ask the clinics along the road to Arafat for medical help because of his lack of visa. “We saw the bodies of pilgrims on the road in need of help,” he said, “some of them were dead, some were suffering from heat exhaustion and no one was helping them”.

The claim that irregular pilgrims were denied help has been made by many, including the official spokesperson for pilgrims from Iraq’s autonomous Kurdistan region Karwan Stoni, who told Agence France Presse they could not access air-conditioned spaces that the authorities had made available.

Ibrahim survived, completed his Hajj and returned to Egypt. But Jordanian cousins Tariq, 48, and Hossam Al-Bustanji, 52, were not so lucky. Their cousin Ahmed told Climate Home that their companions told him they died after walking about for seven or eight hours without any services.

“They fell and pleaded for water but no one helped them”, he said. “Their bodies were buried in Mecca and were not sent to Jordan despite our requests”.

Pilgrims receive a spray of water from volunteers in Mecca on June 17, 2024 (Photo: Arab World Press)

While irregular pilgrims had it worse, even those with official visas suffered and some died in the heat. Jordanian Rania Bassam told Climate Home her brother and his family went to Mecca, where he volunteered as a doctor. 

She said they complained to her about the services provided and the extreme heat. Bassam’s brother later died in Arafat. “His body was identified by his fingerprint but we were prevented from seeing him and saying goodbye”, she said.

Tipton said that, while many of the dead were likely to be over 65-years old with existing heart problems, the heat can kill healthy young people too from heat stroke. 

Without getting bodies into cold water, heat stroke can be a “runaway route to hypothermia with death occurring at [a core temperature of] 40-44C”.

Safer Hajj

Campaigners are appealing to Saudi authorities to take measures that would reduce the risk of mass deaths, especially as the situation is expected to get worse as the world warms.

A 2021 study published in Environmental Research Letters found that if the world warms by 1.5 C above pre-industrial levels, heat stroke risk for pilgrims on the Hajj will be five times greater.

Heat expert Mike Tipton said that they should encourage people to sit down when they can, reduce any stress, fan people and cool their hands, feet and bodies down with cold water. But, he said, it’s difficult to look after so many people.

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Limiting numbers would help, he said, and that’s the route the authorities have been going down. Government reactions in Saudi Arabia and across the Muslim world have been to prosecute and crack down on travel agents who encourage pilgrims to evade visa laws.

But that has not been enough to dissuade Ibrahim’s wife. Despite her husband’s ordeals, she is keen to follow in his footsteps next year, performing Hajj unofficially.

But speaking in their Giza home, Ibrahim warned her against the idea. “You will not be alive again if you go unofficially – either you go on an official Hajj or not at all”, he said.

(Reporting by Eman Muhammed and Joe Lo, editing by Joe Lo and Matteo Civillini)

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Northvolt’s sprawling battery research facility stands out as a modern cubic building of wood and steel between groves of birch trees and tall firs in eastern Sweden.

The Swedish company’s labs form the largest campus for battery research in Europe. It’s here, in a former industrial zone on the outskirts of the town of Västerås, about 100 kilometres northwest of the capital Stockholm, that one of the continent’s best-funded climate tech companies could write the future of batteries.

In November 2023, Northvolt – Europe’s only major home-grown EV battery maker – announced a breakthrough in battery development.

The company had manufactured a first-of-its-kind energy storage battery by replacing widely used critical minerals – such as lithium, cobalt, nickel and graphite – with cheaper and far more abundant sodium – a chemical element which is found in table salt – as well as iron, nitrogen and carbon.

“This is a fundamentally new technology,” Andreas Haas, head of Northvolt’s sodium-ion programme, told Climate Home News in an interview.

Read the story here.

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EU-regulated “green” funds are investing in some of the world’s biggest coal companies that are expanding their operations in contrast to a 2021 UN agreement for countries to reduce their use of the dirty fossil fuel.

European investors hold shares worth at least $65 million in major coal firms across China, India, the United States, Indonesia and South Africa within funds designated as “promoting environmental and social” goals under EU rules, an analysis by Climate Home and media partners found.

Taken together, these companies emit around 1,393 million tonnes of carbon dioxide (CO2) into the atmosphere every year, putting them among the world’s top five polluters if they were a country.

The investments are owned by major financial firms including BlackRock, Goldman Sachs and Fideuram, a subsidiary of Italy’s largest bank Intesa Sanpaolo. Most firms analysed are signatories of the Glasgow Financial Alliance for Net Zero (GFANZ), whose members pledge to align their portfolios with climate-friendly investment.

The asset managers told Climate Home their coal holdings do not contradict EU green policies or the 2015 Paris Agreement to tackle climate change.

At the COP26 UN climate summit in Glasgow in 2021, countries agreed for the first time to accelerate efforts “towards the phase-down of unabated coal power”. “Unabated” means power produced using coal without any technology to capture, store or use the planet-heating CO2 emitted during the process.

But rather than shrinking, global coal capacity has grown since the signing of the Glasgow Climate Pact with a fleet of new coal plants firing up their boilers, primarily in China, India and Indonesia. Coal miners in those countries have also boosted their operations to keep up with the increasing demand.

European leaders have heavily opposed this, with EU president Ursula von der Leyen saying the bloc is “very worried” about coal expansion in China.

“Light green” funds

The investments analysed by Climate Home have been made by funds classified under Article 8 of the EU’s Sustainable Finance Disclosure Regulation (SFDR), which the European Commission hoped would discourage greenwashing and promote sustainable investments when it was introduced in 2021.

Article 8 – known as ‘light green’ – refers broadly to a fund that has “environmental and social characteristics”, while the ‘dark green’ Article 9 refers more directly to sustainability.

The rules were also intended to offer members of the public more clarity on where asset managers invest their money and enable them to make an informed decision on whether they want their savings or pension pots to prop up climate-harming activities.

Workers shovel coal onto a truck at a coal yard near a coal mine in Huating, Gansu province, China. REUTERS/Thomas Peter

But a group of European financial market watchdogs warned this month the rules are having the opposite effect and called for an overhaul of the system.

“Status as ‘Article 8’ or ‘Article 9’ products have been used since the outset in marketing material as ‘quality labels’ for sustainability, consequently posing greenwashing and mis-selling risks,” they said in a joint opinion to the European Commission.

“The general public is still being misled when it comes to sustainable funds,” Lara Cuvelier, a sustainable investments campaigner at Reclaim Finance, told Climate Home. “The regulations are very weak and there is no clear criteria as to what can or cannot be included. It’s still in the hands of investors to decide that for themselves.”

Funding coal expansion

Climate Home identified investments in the biggest-polluting companies in the coal sector as part of a wider investigation led by Voxeurope, which tracked holdings by funds that disclose information under the EU’s sustainable finance directive.

These “green” funds include investments in mining companies like Coal India and China Shenhua – the respective countries’ top coal producers – and Indonesia’s Adaro Energy, as well as in giant coal power producers such as NTPC in India and China Resources Power Holdings.

All of these companies are planning large-scale expansions of their coal output, according to the influential Global Coal Exit List compiled by German NGO Urgewald.

No new coal mines, mine extensions or new unabated coal plants are needed if the world is to reach net zero emissions in the energy sector by 2050 and keep the 1.5C warming limit of the Paris Agreement “within reach”, according to projections by the International Energy Agency (IEA).

State-owned Coal India is the world’s largest coal producer, with fast-growing output topping 773 million tonnes in the latest financial year. It is targeting 1 billion tonnes of annual coal production by 2025-26 by opening new mines and expanding dozens of existing ones.

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In its latest annual report, Coal India cited “pressure of international bodies like [the] UN to comply with [the] Paris Agreement” as one of the main threats to its business. Coal India’s share value has more than doubled over the last 12 months on the back of stronger coal demand in the country, as extreme heatwaves have fuelled the use of air-conditioning among other factors.

State-run mining and energy giant China Shenhua plans to invest over $1 billion in 2024 to expand its fleet of coal power stations and build new coal mines. “We will keep a close eye on climate change to improve the clean and efficient use of coal,” its latest annual report said.

Big investors

The funds with stakes in those coal-heavy companies are managed by Fideuram, an arm of Italy’s largest bank Intesa Sanpaolo, US-based AllianceBernstein and Mercer, a subsidiary of the world’s largest insurance broker Marsh McLennan.

Coal investments in Fideuram’s Article 8 funds – worth at least $16 million – also appear to breach the company’s own coal exclusion policy, designed to rule out holding shares in certain coal firms.

Two of its flagship “emerging markets” funds claim to promote environmental and social characteristics including “climate change prevention” and the “reduction of carbon emissions”, according to information disclosed under EU rules. To achieve their ‘green’ objectives, the funds claim to exclude any investment in companies “deriving at least 25% of their revenues” from the extraction, production and distribution of electricity connected with coal.

But Climate Home found the funds include investments in at least six major coal companies exclusively or primarily involved in coal mining or power generation.

A coal-fired power plant under construction in Shenmu, Shaanxi province, China, in November 2023. REUTERS/Ella Cao

Fideuram did not answer Climate Home’s questions about the funds’ apparent breach of their own policy. But a company spokesperson said in a written statement that “investments in sectors with high-carbon emissions do not conflict with the objectives of the SFDR, which concern the transparency of sustainability investments, nor with the Paris Agreement, which promotes a transition to a low-carbon economy”.

A spokesperson for Mercer said its Article 8 fund, which holds shares in NTPC and China Resources Power Holdings. has an exclusion policy to avoid investing in companies that generate more than 1% of their revenue from thermal coal extraction. “Based on the data provided by ISS [a provider of environmental ratings], no groups involved breach the 1% threshold, and therefore, the fund is not in violation of its SFDR commitments,” they added.

AllianceBernstein did not respond to a request for comment.

Coal-hungry steelmaking

While excluding investments in so-called thermal coal used for electricity generation, several ‘green’ funds put their money in companies producing coking coal – or metallurgical (met) coal – which is used to make steel.

Goldman Sachs’ Article 8 funds hold shares worth several million dollars in Jastrzebska Spolka Weglowa, Europe’s largest coking coal producer, and Shanxi Meijin in China. BlackRock offers exchange-traded funds (ETFs) tracking indexes that include investments in SunCoke, a leading met coal producer in the US and Brazil, Alabama-based Warrior Met and Shanxi Meijin.

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Reclaim Finance’s Cuvelier said that, up until recently, the focus has been on pushing thermal coal out of investor portfolios because the alternatives to met coal in steel production were “less developed”.

“There are now increasing calls on financial institutions to cover met coal as well in their exclusion policies as alternatives exist,” she added. “It’s becoming very important because there are new projects under development that should be avoided”.

A spokesperson for BlackRock said: “As a fiduciary, we are focused on providing our clients with choice to meet their investment objectives. Our fund prospectuses and supporting material provide transparency as to the methodology and investment objectives of each fund”.

Goldman Sachs did not reply to a request for comment.

Reforms on the horizon

At the end of 2022, the European Commission began a review of the SFDR’s application with a view to updating its sustainable finance rules.

Future reforms may include changes to the ways funds are categorised. “There are persistent concerns that the current market use of the SFDR as a labelling scheme might lead to risks of greenwashing… partly because the existing concepts and definitions in the regulation were not conceived for that purpose,” the Commission said in a consultation paper released last year.

It also indicated that the existing categories under Articles 8 and 9 could either be better defined or scrapped entirely and replaced with a different system. The new Commission, yet to be formed following last month’s elections, will decide if and how to move forward with the reform process.

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Separately, the EU’s market supervisory authority, ESMA, has recently issued guidelines to prevent funds from misusing words like “sustainability”, “ESG” – environmental, social and governance – or “Paris-aligned” in their names. A handful of the funds with coal investments analysed by Climate Home have used those labels.

Under the new guidelines, asset managers wanting to slap climate-friendly labels on their funds will have to exclude companies that derive more than a certain percentage of revenues from fossil fuels.

Climate Home produced this article with data analysis contributions from Stefano Valentino (Bertha Fellow 2024) and Giorgio Michalopoulos. This article is part of an investigation coordinated by Voxeurop and European Investigative Collaborations with the support of the Bertha Challenge fellowship.

(Reporting by Matteo Civillini; additional reporting by Sebastián Rodríguez; editing by Sebastián Rodríguez, Megan Rowling and Joe Lo)

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In 2021, UN Secretary-General Antonio Guterres called on the international community to spend 50% of all climate finance on adaptation. In his words, “adaptation cannot be the neglected half of the climate equation.”

Achieving this aim would mean tens of billions more dollars flowing into adaptation projects. This huge – but achievable – feat would be immensely beneficial for communities around the world suffering from regular extreme weather events.

Alongside his call for greater adaptation finance, Guterres outlined five priorities for the sector, one of which was making it easier to access funding, especially for the vulnerable.

If billions are going to be spent on helping countries adapt to climate change, we need to make sure the money is reaching the people who need it the most. This is where the concept of locally led adaptation (LLA) comes in. The term refers to the central importance of providing frontline communities with the power and resources to respond to the climate crisis.

The Adaptation Fund was among the first group of international organisations to endorse a set of principles on locally led adaptation during COP25 in 2019. These principles cover everything from devolving decision-making to addressing inequalities, from providing predictable funding to ensuring the whole process is open and transparent. The principles have since been endorsed by over 100 organisations, including government ministries, global charities and development agencies.

This new model sets the scene for how current and future climate adaptation should be implemented. The focus is on an inclusive approach which puts communities most affected by climate change at the heart of how decisions are made.

Putting words into practice

The Adaptation Fund has been applying the principles of locally led adaptation for over a decade. The fund’s direct access scheme allows national organisations based in the countries they serve to manage all elements of a project, from design to monitoring.

The fund pioneered its first enhanced direct access (EDA) projects in 2014, taking direct access a step further in empowering national institutions to identify and fund local adaptation projects. This led the fund to establish an EDA funding window in 2021, and in April 2024, it went one step further by creating dedicated finance streams to support locally led adaptation.

The fund believes this new approach makes it “the first multilateral climate fund that has fully operationalised the global LLA principles,” it said in a press statement.

“The Adaptation Fund has a rich history of innovating and evolving to respond to countries’ urgent adaptation needs. Over several years, the fund has continued to offer more opportunities to vulnerable countries through diverse funding windows beyond its regular projects,” Mikko Ollikainen, who heads up the organisation, told Climate Home.

“Creating these dedicated funding windows to support locally led adaptation will open even more opportunities for vulnerable countries to enhance capacity building by offering local governments, NGOs, community organisations, indigenous groups, young entrepreneurs and a broad range of local actors the opportunity to develop and implement sustainable adaptation actions directly,” he added.

Tailored solutions

One of the pioneering locally led adaptation projects the fund supported took place in South Africa from 2015 to 2020. On opposite ends of the country, two districts – Namakwa in the Northern Cape and Mopani in Limpopo – are subject to the same extreme weather: hotter temperatures with more intense dry and wet spells. These more uncertain, dangerous conditions put ever greater pressure on fragile local communities.

The pilot project was implemented by the South African National Biodiversity Institute (SANBI). It was intended to strengthen local institutions to adapt to these new climate realities, and provided funding to 12 ‘small grant recipients’ – groups based in the region and with an intimate understanding of how the communities work.

Investments were made after vulnerability studies were conducted and tailored solutions created to meet local needs. The ambition of these groups was simple – to ensure resources went to people most vulnerable to climate change. A raft of innovative solutions were then implemented, from rainwater harvesting and solar pumps, to cooling sheds and bio-gas digesters.

‘Considerable impact’

“The reach and positive impact on people’s livelihoods and adaptive capacity through assets, learning and networks was considerable,” the project’s evaluation report concludes, adding that the focus on careful, appropriate investment “has significantly improved the lives of those directly, and indirectly connected with the projects.”

Mandy Barnett, SANBI’s chief director for adaptation policy, told Climate Home that one lesson from the project was a need to develop trust and effective relationships with people on the ground.

“We learned what we should do and what we shouldn’t do in terms of getting climate finance to the right people,” she added, noting that communicating expectations, from the funder downward, was key.

“A wider challenge is the need to translate climate science into local concerns. We want to empower people to make informed decisions, and to do this requires you to invest time and resources into capacity building,” she added.

New opportunities

The South African project helped pave the way for the many LLA schemes the fund is now supporting around the world. Fast forward to 2024 and a range of new proposals have just been approved which puts decision-making powers into the hands of local institutions.

They include a Peruvian project to support water, agriculture and food security; a Rwandan project to build climate resilience in rural areas; and in Belize, a plan to restore ecosystems and livelihoods battered by climate-related disasters. What these projects have in common is not only a plan to fight climate change, but one where the tools and resources are under local control.

“These new LLA windows take a significant step forward in providing an opportunity to directly lead and develop adaptation projects on the ground and accelerate effective, scalable actions worldwide in the process,” said Ollikainen.

The way forward

On World Environment Day this June, the UN Secretary-General took the opportunity to speak up about adaptation finance again. He highlighted how the last 12 months have been the hottest on record. “For every dollar needed to adapt to extreme weather, only about 5 cents is available,” he said.

The most recent data from the Organisation for Economic Co-operation and Development shows that, in 2022, $115.9 billion was raised for climate finance, the first time this target has been achieved. Adaptation finance made up $32.4 billion of the total, a way off the 50% goal endorsed by the UN head, but still three times higher than what it was in 2016.

Where this money is spent will determine how vulnerable regions can survive the impacts of climate change in the coming years. But as more locally led adaptation projects are rolled out, affected communities will finally have a direct say in how that happens.

Sponsored by the Adaptation Fund. See our supporters page for what this means.

Adam Wentworth is a freelance writer based in Brighton, UK.

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