Climate Change News

Freddie Daley is a research associate with the Centre for Global Political Economy at the University of Sussex. Charlie Lawrie is a postdoctoral associate at the University of Sussex.

In December 2025, Indonesia quietly abandoned plans to close the Cirebon-1 coal power plant. This was no ordinary power plant. Cirebon-1 was supposed to be the centre-piece of a $21.4 billion (£16.5bn) international deal backed by the US, UK, Japan and the EU to help Indonesia end coal use.

Indonesia’s so-called Just Energy Transition Partnership, or JETP, was launched at a G20 summit in Bali in 2022. Similar deals have been struck with South Africa, Vietnam and Senegal. They are widely regarded as the most ambitious attempt at getting international climate finance to end coal use in populous, coal-dependent middle-income countries.

The UK government once touted the JETPs as “a template on how to support just transition around the world”. This refers to efforts to ensure that the phase-out of fossil fuels and phase-in of low-carbon technologies is fair, inclusive and reflects the demands of workers and affected communities.

But if this approach cannot retire a single plant in Indonesia, the world’s fourth largest coal consumer, there is reason to question whether the model itself works. Our research suggests these partnerships are better understood as a cautionary tale.

Investors needed

The idea underpinning the JETPs is elegant in theory: use public money from rich countries to attract private investment for renewable energy projects and closing down coal plants.

Grants from governments and low-cost loans supposedly reduce the risk enough to bring in billions more from banks and asset managers. The public money “unlocks” the private money, and together they fund an energy transition that benefits the public through cleaner air, reliable energy and reduced climate risk. Win, win.

But across all four JETP countries, the private money has yet to materialise at the scale envisioned. In Indonesia, as of early 2025, only around $1.1 billion of public money had been disbursed. But the country’s plan for decarbonising electricity estimates it needs $97 billion in investment by 2030 – a cavernous gap.

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More troubling still is the lack of consolidated financial reporting for the JETP funds. Fifty separate funding packages within the Indonesian JETP, all with their own financial instruments and accounting frameworks, make it all but impossible to track how much money has been spent.

As international climate law expert Lukas Bogner has argued, this kind of finance creates complex bureaucratic layers that recipient countries must navigate.

Why investors haven’t shut coal plants

Decommissioning a coal plant is not like building a new one. It means buying out existing contracts, compensating investors for lost future profits, and renegotiating complex legal agreements.

Even then, the electricity the plant provided still needs to be replaced. This requires further investment in generation systems that may not yet exist. Investors have little appetite for any of this, and the costs fall primarily on the state.

In fact, the supposed unlocking of private investment with public money raises a perennial tendency: private capital moves where returns are highest and risks lowest.

Investors in London and New York, for example, demand high returns from middle-income economies like Indonesia, yet baulk at complex regulatory environments, state-owned electricity companies, powerful coal interests and mounting sovereign debt burdens. Public money can make some projects more attractive, but will not remove the supposed political and economic risks investors see in countries like Indonesia.

The energy transition deal aims to wean Indonesia off coal, which now takes up nearly half of the country’s electricity mix. Photo: Kemal Jufri / Greenpeace The energy transition deal aims to wean Indonesia off coal, which now takes up nearly half of the country’s electricity mix. Photo: Kemal Jufri / Greenpeace

The JETP also means loading Indonesia with more debt. Of the $21.4 billion now pledged, only 2.6% comes in the form of interest-free grants. Most JETP finance would arrive as commercially-priced loans which Indonesia must eventually repay.

In other words, Indonesia is being asked to borrow more to decommission coal assets that currently generate government revenue and employment. At the same time, it will have to purchase renewable electricity from the privatised companies that would replace them.

In the words of one of our interviewees, the Indonesian state is expected to “pay twice” – once to close the old system, and again to buy power from the new one. Trade unions in Indonesia have been blunt about what this means in practice. Under the JETP model, they warn electricity will no longer be treated as a public good, but as a commodity that ordinary Indonesians will pay more for.

Why rich countries are “reluctant” on additional JETP coal-to-clean deals

The JETP model can also weaken the same state institutions needed to manage the energy transition. Countries that have managed rapid clean-energy booms, from China to Vietnam, have done so through strong state-owned enterprises, clear industrial strategies and the ability to direct investment and discipline business.

The JETPs, by contrast, are designed around a diminished role for the state and a central role for private capital. This happens through regulatory reform, the creation of new private markets, or through investor-friendly technologies.

In the case of Indonesia, this “de-risking” agenda explains the pressure to break up the national electricity company and sell off its assets – a prospect fiercely resisted by trade unions, civil society and even wealthy groups who profit from the existing system.

A broken model?

International climate finance remains important. Rich countries must still fund energy transitions in the Global South. But the Indonesian JETP suggests that relying on private investors to deliver coal phase-outs may be the wrong model.

Alternatives do exist, from proposals for much larger grant-based financing to the Bridgetown Initiative proposed by Barbados’s prime minister, Mia Mottley, which would use International Monetary Fund resources to support climate investment. More radical proposals call for publicly-owned, worker-led transitions. But so far, these ideas have made little progress.

Our research suggests just transitions are more likely when governments receive direct grants that help them retain the capacity to shape their own energy systems, and to support domestic industries through green industrialisation.

The failure to decommission Cirebon-1 matters beyond Indonesia. It suggests the world’s flagship model for financing the end of fossil fuels isn’t working. And the longer it takes to admit that, the harder the transition becomes – for Indonesia, and for everyone.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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In a school in South Africa, a group of students stare at a row of small plants growing in a greenhouse. Each one is involved in the lesson, caring for the growing crops.

But this is no ordinary classroom setting. These children are learning about aquaponics, a method of growing plants and fish in a mutually beneficial water system. This ancient technique of food production is now being taught to millions of schoolchildren after being introduced by the South African government seven years ago.

Laerskool Kempton Park on the edge of Johannesburg was one of the first schools to introduce the subject with the aim of improving food security. This is a serious challenge in a country where an estimated 19.7 million people, or around 30% of the population, experience moderate levels of food insecurity, meaning that they struggle to afford enough food for a healthy, balanced diet.

Bringing the farm to school

Aquaponics is a way of supporting communities to access food in a sustainable and efficient way. The solution is simple: fish waste is turned into available nutrients by bacteria in the water. Plants absorb these nutrients and the cleaned water is returned to the fish tank.

There are multiple benefits to this approach. The system doesn’t require chemical fertilisers, soil or large tracts of land. It is also highly efficient, with recirculated water being used over and over again. This is an important feature in areas of South Africa that experience drought or unpredictable weather.

Agricultural subsidies can be repurposed for a just and sustainable rural transition

Aquaponics can offer a range of benefits depending on the local context. In South Africa, townships in major cities such as Johannesburg don’t always have the space to produce their own food, while in other places, such as the Northern Cape, extreme weather is making agriculture much harder.

Learners participating in a practical aquaponics lesson in Kempton Park. Image: INMED Learners participating in a practical aquaponics lesson in Kempton Park. Image: INMED Schoolchildren observing fish grown in an aquaponics system. Image: INMED Schoolchildren observing fish grown in an aquaponics system. Image: INMED

At Laerskool Kempton Park, the students have benefited from the innovative work of INMED, a non-profit organisation that supports vulnerable children and families in the country. 

INMED has trained hundreds of teachers and over 7,000 children on the benefits of aquaponics. With the help of funding from the Adaptation Fund through the UNDP-Adaptation Fund Climate Innovation Accelerator (AFCIA), the organisation was able to develop its own aquaponics system to be used in schools.

Scaling up the solution

INMED describes its prototype as a ‘plug and play’ system, designed to be modular and easy to install and manage. The system includes a 2,000-litre fish tank powered by a solar pump to circulate water. The design is simple with a view that it could be easily replicated across different school settings.

Unathi Sihlahla, director at INMED South Africa, told Climate Home News that “aquaponics speaks to a number of challenges… including limited access to nutritious food, high youth unemployment, water scarcity, and in many cases, poor or no access to arable land.” 

Giving nature breathing room builds climate resilience

INMED’s prototype allows communities to work around these problems as it doesn’t need soil and uses far less water than conventional agriculture.

“We’ve seen schools that previously had no food production now able to grow vegetables consistently, while also producing fish. That food often goes straight into school meals or supports vulnerable households nearby,” Sihlahla added. The project estimates that over 5,300 kilogrammes of food have been harvested in each quarter the system has been operating.

As aquaponics is now part of the school curriculum, many educational departments across South Africa have been looking at ways to teach the subject. INMED’s innovative design could provide a handy solution. The organisation has already started to roll it out across different provinces and a new collaboration with the Eastern Cape Provincial Department of Education is in the works. INMED is also scaling the ‘plug and play’ model in Tanzania.

Plant inspection at one of INMED’s ‘plug and play’ aquaponics prototypes. Image: INMED Plant inspection at one of INMED’s ‘plug and play’ aquaponics prototypes. Image: INMED Giving youth a sense of pride

For educators, teaching schoolchildren new agricultural skills is not only about improving food security, but also about creating the next generation of farmers. This group will need to grow food with the increased threat of extreme weather events and having knowledge of alternative methods, such as aquaponics, could be key.

“Agriculture is not seen as something young people want to go into, but when they are exposed to something like aquaponics, it feels modern and relevant,” said Sihlahla, adding that some students have started their own projects at home or are looking to continue studying the method.

“There’s also a sense of pride. Producing food that supports your school or community changes how young people see themselves and their role.”

Engaging the next generation

The Adaptation Fund’s support for young people extends beyond South Africa. Several other related projects aim to equip youth with practical skills for climate adaptation.

In Costa Rica, a $10-million project implemented by private foundation Fundecooperación included several creative youth-focused programmes in climate-vulnerable areas. It trained young people in coral reef restoration and farming techniques, involved high school students in community water resource monitoring and management, shared knowledge on adaptation through a theatre tour in schools, and created an art mural competition using AI. 

Extreme heat is rewriting food security. The best fixes are already within reach

In Lesotho, meanwhile, climate education is being integrated into the school curriculum through climate-smart agriculture materials and teacher training rolled out across primary and secondary schools. This is equipping students from an early age with practical, locally relevant knowledge to build resilience. 

“Children and young people are among the most vulnerable to climate change,” said Mikko Ollikainen, head of the Adaptation Fund. “These programmes are not only training young people in adaptation but empowering them.”

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

The post Young South Africans take up sustainable agriculture for food security appeared first on Climate Home News.

Just as Colombia – a coal-producing country that has halted new exploration licenses for hydrocarbons – was set to host the first fossil fuel phase-out summit in late April, the government received notice from a foreign energy firm operating on its soil. It was being sued for millions of dollars.

One day before Colombia hosted representatives from around 60 countries for the first Global Conference on Transitioning Away from Fossil Fuels, Spain-based firm Termocandelaria Power, which operates two of the country’s diesel- and gas-fired power plants, sued the government for $198 million alleging a breach of investor protection rules under a bilateral agreement.

Termocandelaria said government measures since 2024 have prevented its Colombian subsidiaries from receiving full payment for the power they supplied to a public utility, while the Colombian government justified its actions as needed to guarantee financial solvency and deliver electricity to rural communities.

While Termocandelaria declined to comment for this article, the company said in a press release last month that investment protection treaties “are designed to provide a stable and predictable legal framework for long-term investments in strategic sectors”.

The timing shows how trade agreements that offer investors protection when government decisions are seen as causing harm to their business – a system known as investor-state dispute settlement (ISDS) – can hamper the transition away from fossil fuels even when countries are pushing for it. Governments in the Global South are particularly exposed, experts told Climate Home News.

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As part of the official academic contribution to the Santa Marta conference, researchers recommended that governments should “recognise” ISDS as a barrier to the energy transition, and called for negotiations on an international initiative to dismantle ISDS protection for fossil fuel investments, either through “a new standalone” international agreement or as part of a broader treaty.

Mario Osorio, a research fellow at the Center for Economic and Policy Research (CEPR), said Termocandelaria’s claim against Colombia “puts in perspective how serious, concrete and real these threats are” for developing countries.

Osorio said the second fossil fuel transition conference – to be held next year in Tuvalu – presents an opportunity for advancing ISDS reform from discussion to “something more concrete”.

Plenary of the first conference on the Transition Away from Fossil Fuels in Santa Marta. (Photo: Ministry of Environment of Colombia) Colombia pledges to exit ISDS

ISDS is a mechanism in international trade that allows foreign corporations – many of them linked to fossil fuel interests – to sue governments in international arbitration courts. One 2022 study estimated that possible legal claims from fossil fuel investors could reach $340 billion.

In the lead-up to the Santa Marta conference, Colombian President Gustavo Petro pledged to exit the ISDS system by reviewing Colombia’s 129 investment protection agreements. This came after more than 200 economists sent Petro an open letter urging Colombia to abandon the ISDS system.

Eunjung Lee, a senior policy advisor at UK-based think-tank E3G, said the Santa Marta conference had helped elevate ISDS reform as a key element of the transition away from fossil fuels, despite the issue remaining relatively little-known, even among climate negotiators.

She added that governments tend to be cautious about discussing ISDS at climate summits, as these treaties also implicate trade and economy ministries. “If it is not your file, then you can’t really say much about it and taking action is not necessarily up to you,” she explained.

Kyla Tienhaara, Canada Research Chair in Economy and Environment and a professor at Queen’s University who has worked on the issue for two decades, said the conference in Santa Marta marked a new approach, and that Colombia had placed ISDS “prominently in the agenda”.

The next transition conference presents an opportunity for governments to land on something more practical, particularly under the agreed work stream on “macroeconomic dependence and financial architecture”, but it will depend on the co-chairs Tuvalu and Ireland, she said.

Ireland was sued in May by oil company Lansdowne for failing to award a lease in the Barryroe offshore field. The claim was made under the Energy Charter Treaty (ECT), which fossil fuel companies have used to sue several governments over the consequences of enacting their climate policies.

Following a similar move by some other European states, Ireland left the ECT in April while the Santa Marta conference was ongoing, but existing fossil fuel investments are still protected for 20 years under a “sunset clause”.

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“Disappointing” conference report

Despite the prominence of the issue in the conference rooms, experts told Climate Home that the chairs’ takeaways report was “disappointing”, as it did not explicitly mention ISDS as a key obstacle to the energy transition.

The Netherlands, which co-hosted the summit, may have faced conflicting interests, said Tienhaara, as it is second only to the US as a “home state” for the investors bringing the most ISDS cases, including foreign companies structuring their investments through the country.

The Dutch government also withdrew from the ECT last year, which means it understands and has acted on the threat of investment treaties to climate action, the researcher said. “Unfortunately, they seem unwilling to extend their concern to the harm that these treaties cause in other countries, particularly in the Global South,” she added.

Lee of E3G said Global North countries like the Netherlands tend to export capital to developing countries, which is why they seek to protect their investors’ interests and are unlikely to drive a dismantling of the ISDS system themselves.

Developing countries like Colombia, which have been negatively affected by ISDS claims, have an incentive in “voicing their concerns” and forming a bloc around this topic. “Uniting Global South countries can make a stronger case,” Lee said.

The post Santa Marta process can confront trade protection for fossil fuels, experts say appeared first on Climate Home News.

Orhan Solak is deputy director of Türkiye’s Directorate of Climate Change.

In today’s fraught economic context, everyone is looking to do more with less, and financing climate action is no exception. Yet there are clear opportunities to make better use of existing funding to achieve climate goals, including the repurposing of more than $700 billion in agricultural subsidies to support a just rural transition.

While public support for agriculture and food security has increasingly been reflected in global climate discussions, particularly in the context of the Paris Agreement’s Global Goal on Adaptation (GGA), the scale and urgency of current challenges call for stronger consensus and rapid implementation of practical, context-sensitive solutions.

The need to empower farmers to adopt sustainable practices, such as reducing food loss, cutting waste, building resilience and managing water resources wisely, is not a modern ethos. It echoes the model of Göbeklitepe, civilisation’s earliest-known settlement, built on the principles of solidarity, balance and harmony with nature.

This historical perspective underscores that sustainable resource management is deeply rooted in human development, and it reinforces the importance of aligning today’s agricultural transformation with both environmental integrity and social equity.

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However, to date, public support for farming globally has largely prioritised synthetic fertilisers and input-intensive production models, often overlooking more sustainable, resource-efficient and resilience-oriented agricultural practices.

The good news is that countries are increasingly recognising that climate action cannot come at the cost of food security, dignified livelihoods and greater equality. Any transition to more sustainable food systems must be “just” for the farmers and the rural communities who underpin them.

Enhancing long-term food security

As COP31 President, Türkiye will draw on its unique historical and geographical position as a bridge between regions and civilisations to foster dialogue, strengthen cooperation and mobilise collective efforts toward scaling up finance towards net zero targets, a vital pillar of this year’s COP31 climate talks in Antalya.

Moving forward, greater emphasis should be placed on supporting sustainable and climate-resilient agricultural systems through targeted investments, capacity-building, innovation and nature-positive practices.

Strengthening support for efficient water use, soil health, agroecological approaches and circular production models can enhance long-term food security while improving resilience to climate-related shocks.

Comment: Nature cannot be ignored by Europe’s next big budget

In this context, aligning agricultural policies and financing mechanisms with sustainability objectives will be essential not only for protecting natural resources, but also for ensuring inclusive rural development and intergenerational equity.

A just rural transition that achieves climate goals and zero waste without undermining agricultural communities and economies is not possible without countries providing the necessary financial support. Redirecting agricultural subsidies offers a promising path toward both objectives, but only when reform is carefully designed and sensitive to context. Done well, it can offer a way to ease pressure on governments to find fresh funding.

New high-level panel to offer alternatives

This is the mission of a new High-Level Panel for a Just Rural Transition, recently launched in Ankara. Together with panel members that include former heads of state, senior officials from international organisations, and government representatives from across Africa, the Americas and Europe, I believe we can provide governments worldwide with viable and sustainable alternatives.

In the context of heightened scrutiny over international aid and finance, redirecting existing funding makes both economic and environmental sense.

New data shows rich nations likely missed 2025 goal to double adaptation finance

In Türkiye, farm subsidies have, for several years, increasingly supported organic farming through an established certification system aligned with international standards. The Green Deal Action Plan, published in 2021, set out objectives to reduce the use of pesticides and chemical fertilisers, promote organic production, increase renewable energy use, and improve waste and residue management.

In addition, Türkiye’s Climate Change Adaptation Strategy and Action Plan (2024–2030) further strengthens this policy direction by integrating climate resilience considerations into agricultural practices and supporting sustainable land and resource management approaches.

Other countries are also embracing innovative approaches. Malawi, for example, is piloting a system in which subsidies for synthetic fertiliser are conditional on other, more climate-positive practices such as diversifying the crops planted to help improve soil health or applying soil conservation measures and managing soil organic matter. Elsewhere, the UK is also shifting to a model that rewards environmental stewardship through its Sustainable Farming Incentive (SFI).

The exact ways in which farm subsidies are redirected will depend on each country’s specific circumstances and needs, but the overall approach is one that stands to benefit all nations.

Channelling public support away from high-emission practices is not only a strategy for addressing today’s challenges, but also one that helps build long-term resilience.

Waki Munyalo works on her farm after harvesting her maize insured by an agricultural insurance company that helps small-scale farmers to manage the risk associated with extreme climate conditions, in Kitui county, Kenya, March 17, 2021. (Photo: REUTERS/Monicah Mwangi) Waki Munyalo works on her farm after harvesting her maize insured by an agricultural insurance company that helps small-scale farmers to manage the risk associated with extreme climate conditions, in Kitui county, Kenya, March 17, 2021. (Photo: REUTERS/Monicah Mwangi) Just Transition Mechanism consultations in Bonn

This month’s Bonn Climate Conference will mark an important milestone on the road to COP31, helping to shape the agenda for the negotiations in Antalya six months later.

Countries will consult over the Just Transition Mechanism, the financial framework designed to ensure the transition to a climate-neutral economy is fair. This is a vital opportunity to ensure that agrifood systems and rural communities are placed at the heart of its agenda, and it is a moment to reinforce the philosophy of COP 31: from dialogue to consensus and action.

To accelerate climate action at the “COP of the Future”, we must learn from the past and improve upon it through strengthened dialogue, consensus-building, and concrete, action-oriented outcomes.

Countries should recognise that a just rural transition requires action not only from actors within the agrifood system, but across all relevant sectors and industries. Momentum is steadily growing, and under Türkiye’s COP31 Presidency priorities, this agenda is expected to feature prominently. This momentum sets the stage for a defining COP31 for climate equity and inclusive climate action.

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At the African Development Bank (AfDB) annual meetings this week, several African leaders called for investments in electricity infrastructure which go beyond lighting homes to powering economies.

Applauding the AfDB for its energy programmes like Mission 300 – which aims to provide electricity access to 300 million Africans by 2030 – the Central African Republic’s President Faustin-Archange Touadera said that without power supply “we will not be able to achieve development”.

Speaking alongside him, the Republic of Congo’s President Denis Sassou Nguesso echoed this, saying that “as we need to help our people to turn towards agriculture, to turn towards livestock rearing, we also need to provide power to them.”

As the Mission 300 initiative advances, the AfDB has launched a new progress tracker to provide real-time data on electricity access projects across Africa, including new connections, financing, project status and geographic coverage. It shows that Mission 300-supported projects underway so far are due to connect 34.6 million people, with all of the interventions focused on expanding household electricity access.

However, attention is increasingly shifting from simply connecting households to ensuring that electricity access translates into economic opportunities and livelihoods. That shift is driving the launch of a new Centre of Excellence for Productive Use of Energy being developed under Mission 300 by the philanthropically funded Global Energy Alliance for People and Planet (GEA).

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In an interview with Climate Home News, Carol Koech, the GEA’s vice president for Africa, said the initiative is designed to ensure that electrification supports income generation, agriculture and local economic development rather than only basic household access.

Q: What is the Centre of Excellence for Productive Use of Energy aiming to achieve with Mission 300?

A: Mission 300 is increasingly being seen as a job platform – and so the role of the Centre of Excellence in translating those electricity connections to jobs. We want the centre to do four things. First, as a delivery engine, which enables countries to embed a cross-institutional advisor that supports the electrification components, but also other components that are happening in the country. 

Second, we want the centre to be an innovation and strategy hub. Today, there’s really no place where you can go to find the state of the industry for productive use of energy across the globe, and we want to make the centre of excellence the place where you can go and get information about what technologies are available, where deployment is happening and how much is being deployed. 

Campaigners in Africa are demanding their governments stop the development of fossil fuels on the continent and embrace the opportunities of renewable energy (Photo: Lighting Global/SunCulture/World Bank)

The third pillar is to coordinate and mobilise capital. We anticipate the centre coordinating internally within the ecosystem but also mobilising additional financing to help productivity. The last piece is how to scale businesses, enterprises and partnerships around this centre because we anticipate that as we grow this space, new industries will emerge and those industries will need to be supported.

Q: Why is productive use of energy becoming important under Mission 300?

A: Mission 300 gave us a bigger platform to demonstrate that energy is truly an enabler for economic development. It’s not sufficient to just provide a connection, but it is required that that connection truly translates to economic development for the communities that benefit.

We shouldn’t bring electricity and then start thinking about what people can do with it. We need to think about both at the same time and ensure electricity arrives together with the things that will make a difference in people’s lives. Historically, we’ve brought electricity and imagined a miracle would happen, but we know that hasn’t been the case.

The question is how to ensure universal access in the cheapest way while still transforming communities. Some mini-grids have been deployed in places where demand is extremely low, making them too expensive to sustain. But when mini-grids are paired with productive uses, the economics start to change. If businesses currently running on fossil fuel generators move to solar or renewable energy, operating costs fall and the business case for mini-grids becomes much stronger.

Q: How could this work in practice for agriculture and rural communities?

A: I’ll give you a practical example in our pilot country Zambia. Zambia has two programmes, they have the ASCENT programme for energy access and they also have the Zambia agribusiness and trade platform (ZATP). Some of the components of the ZATP programme – which is an agri-business program to help farmers to be productive – have a productive use component but don’t have an energy supply component. So we’re offering things like mills, processing facilities, irrigation and others. In some parts of Zambia, these productive use equipment has been supplied but has not been powered, so communities are not benefiting from that. 

So the whole point is if we coordinate where the agribusiness programme is deployed together with where the energy access programme is deployed and layer those two programmes together in one place, then you could solve the energy access problem and solve productive use together and therefore have really meaningful outcomes for communities. 

Q: How will the centre help both households and small businesses use electricity productively?

A: The question on whether we should electrify households or businesses is neither here nor there. We need to electrify all. The argument is really once we electrify businesses, the owners of those businesses will be able to pay what they need for their households as well as increase production for their businesses. 

Electricity consumption is usually an indicator of economic development and by pushing productive use into households, especially where households are also smallholder farmers, the question becomes: how can electricity access translate to additional economic development for them? If you are connected onto a mini-grid, then you can actually use that connection to run irrigation, put in a dryer, or a cold storage system, whatever you require to improve your income but the fact that you have energy means that you can access productive use. Now, we need to ask ourselves how do these farmers or these households then get access to these appliances, because that’s another barrier. 

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The cost of these appliances is usually extremely high, and when you have programmes such as the ZATP running in Zambia, that’s already a public funding approach to making these appliances available and potentially reachable for farmers, either at household level, at farm level or at community level.

Q: How does this complement the already existing Mission 300 national energy compacts designed by countries?

A: Each of the national energy compacts have a productive use component, a pillar that talks about distributed renewable energy, productive use, and clean cooking. This is actually complementing the work of the countries, and this centre is like an available support, back office for countries to tap into as they implement their national energy compacts, if they have specific requirements and support for that pillar three.

So the advisers that will be embedded into countries, their role is to coordinate within country programs that are running where energy could make a difference. The advisers will be sourced from the country and so they will make sure that the donor money is coordinated to benefit the country fully. Their role will include going to ministries of agriculture or any related ministries and understanding where they are prioritising programmes that require electrification. In many cases, programmes and money have already been allocated, but this component is about how do we deploy it in a way that it actually truly brings a difference, so those advisers will do that. 

Q: How will the centre address financing and private sector investment challenges?

A: What we’re really looking at is different financing mechanisms. In the past, we have provided subsidies and results-based financing to suppliers, distributors and manufacturers to help create markets for productive-use appliances. I see this as one mechanism the centre could use, but the bigger opportunity is aligning public funding across different programmes so that more of it can support productive uses, either through direct funding or subsidies.

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When it comes to private sector investment, the reality is that Africa’s energy sector still faces serious constraints. Most private investment has gone into power generation, particularly through independent power producers, and even then that has only been possible in places where the off-takers, usually utilities, are bankable. 

To unlock more private capital, countries need the right policies, reforms and regulations, but even more importantly, utilities must become financially viable. If the off-taker is not bankable, then the project is not bankable.

Another major question is how to attract private investment into transmission infrastructure. There are different models being explored, but the reality is that public funding alone is not sufficient to achieve Mission 300, so finding new ways to mobilise private capital will be critical.

This article was updated after publication to add information about the Mission 300 tracker.

The post Q&A: How can African electricity access power jobs not just lightbulbs? appeared first on Climate Home News.

Andreas Sieber is head of political strategy at 350.org. Shady Khalil is a senior global policy strategist at Oil Change International.

COP31 will take place in the context of what Fatih Birol, the head of the International Energy Agency, has called the “biggest energy crisis in history” – an extraordinary warning from a typically measured leader. A UN climate summit that fails to address fossil fuel dependency, energy affordability and energy access will not only fail politically; it will fail economically and socially too.

The last COP in Belém created several important building blocks: a Global Implementation Accelerator, a Just Transition Mechanism, the climate finance work programme, an expanded Action Agenda linked to the first Global Stocktake (GST1), and the Presidency-led Belém Roadmaps on forests and transitioning away from fossil fuels (TAFF). 

But COP31 will need to move from frameworks to delivery. The historic first international conference on the transition away from fossil fuels in Santa Marta, Colombia, in April added further momentum to this agenda.

Development hit to importing nations

The countries paying the highest price for fossil fuel volatility are not the richest countries. The cost of dependency on fossil fuels is hitting importing low-income countries the hardest. Over three-quarters of the world’s population lives in countries that are net importers of fossil fuels. High energy prices push up food costs. Inflation fuels political instability. Debt burdens deepen. The fossil fuel crisis has become a development crisis. That is why COP31 matters.

The Presidency-led Belém Roadmaps on forests and TAFF are expected to be presented at COP31. The next step should be obvious: countries need domestic roadmaps showing how they will actually implement the transition at home. 

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A growing number are expected to develop such plans. COP31 should encourage them to put together domestic implementation roadmaps for shifting off fossil fuels that have concrete milestones, sectoral targets, investment strategies and policy measures. 

At the same time, these processes must recognise that countries do not share the same starting points, capacities or development needs. For some, this may take the form of comprehensive roadmaps to phase out production and consumption, while for others the priority may be economic diversification, industrial transformation or expanding energy access and energy sovereignty. 

Risk of disorderly transition

Without credible planning and international cooperation, the transition risks being too slow and increasingly chaotic, with fossil fuel demand destruction occurring through rationing, price shocks and de-industrialisation rather than through a managed socially just transformation. 

This stands in direct contrast to the GST commitment to an “orderly” transition away from fossil fuels. Domestic roadmaps can help chart more stable coordinated pathways that reduce social disruption while contributing to geopolitical and economic stability. 

Türkiye and Australia should show leadership as the upcoming COP hosts. For Türkiye, this is particularly urgent given the absence of a coal phase-out date. Price spikes for oil and gas have siphoned around $3 billion from ordinary people and businesses in Türkiye in the first two months of the current crisis alone, calculations by 350.org show. 

Australia faces a different credibility challenge. While positioning itself as a renewable energy powerhouse, it also remains one of the world’s largest fossil fuel expanders and is facing calls to tax its fossil fuel exports. 

Watch CHN’s webinar: From Santa Marta to Bonn – where next for the fossil fuel transition?

According to Oil Change International, four Global North countries — the US, Canada, Norway and Australia — are responsible for nearly 70% of projected new oil and gas expansion between 2025 and 2035, equivalent to around three times the annual emissions of all coal-fired power plants worldwide. 

Paragraph 36 of the Mutirão decision agreed at COP30 already invites governments to submit implementation and investment plans for their national NDC climate plans. Domestic TAFF roadmaps could become a practical way to operationalise that commitment, while also creating space for countries to define national pathways aligned with their own development priorities and constraints.

This matters because some of the most politically difficult elements of the first Global Stocktake in 2023 — especially the transition away from fossil fuels and halting deforestation — are where implementation lags furthest behind rhetoric. Governments continue to endorse transition goals but must more seriously address the harder questions: how workers are protected, how grids are modernised, how industries adapt, and how countries finance the shift while maintaining economic development and energy access.

Roadmaps for coordination and clarity

Domestic TAFF roadmaps can help answer those questions. They allow governments to coordinate internally across ministries and externally with investors, development banks and international partners. They can provide clarity on timelines, infrastructure needs, financing gaps, industrial strategy and social protection. Most importantly, they can help ensure the transition is not only fast, but fair.

The first countries willing to develop credible transition roadmaps could also help rebuild international trust. They would demonstrate that a managed phase-out of fossil fuels can support economic development, create jobs, improve energy security and expand energy access rather than undermine them. That’s the spirit of the Santa Marta conference that now needs to be emulated.

This is also becoming a geo-economic issue. In a world increasingly shaped by bilateral deals, industrial competition and fragmented trade relations, countries with credible transition plans will be more insulated from global fossil fuel shocks, far better positioned to negotiate on debt restructure and cancellation, climate finance, technology transfer and industrial policy. Governments that know where they are going can shape the transition to their advantage. 

Solar panels and wind turbines at the Vopak Solarpark in the industrial port of Eemshaven, Netherlands. (Photo: IMAGO/Jochen Tack via Reuters Connect) Solar panels and wind turbines at the Vopak Solarpark in the industrial port of Eemshaven, Netherlands. (Photo: IMAGO/Jochen Tack via Reuters Connect) Leaders’ support needed

COP31 also presents Türkiye and President Recep Tayyip Erdoğan with a rare diplomatic opportunity. At a moment of growing fragmentation between North and South — and between East and West — Türkiye could utilise its role as a middle power and serve as a bridge-builder capable of restoring high-level political momentum to the climate process and convene a leaders summit with wide attendance.

Leaders attending COP31 should help countries agree that TAFF roadmaps are a practical way to turn climate promises into real action. These roadmaps would reflect national realities while identifying needs for international and regional cooperation, including on financing and barriers to transition such as debt burdens, technology access and trade rules. 

Ultimately, roadmaps for transitioning away from fossil fuels are roadmaps for economic resilience, energy security, and political stability in a far more volatile world.

The post COP31 must persuade countries to make fossil fuel transition plans  appeared first on Climate Home News.

The odds of a new global temperature record being set within the next five years have increased further, as the return of the El Niño weather pattern could make 2027 the hottest year ever, the UN’s weather agency has warned.

The World Meteorological Organization (WMO)’s annual update predicts an 86% chance that at least one year between 2026 and 2030 will surpass 2024 as the warmest year on record – up from 80% in last year’s forecast.

Global average temperatures reached 1.55C above pre-industrial levels in 2024, when the last El Niño event supercharged human-made warming primarily caused by the greenhouse gas emissions generated through burning fossil fuels.

El Niño to supercharge heat in 2027

Meteorologists expect El Niño – the natural climate phenomenon characterised by unusually warm sea-surface temperatures in the eastern Pacific Ocean – to start developing as early as this month. Some forecasters say that this time around the event could become particularly powerful.

Leon Hermanson, the lead author of the WMO report, said the prediction of El Niño for the second half of 2026 “increases the chances of the following year, 2027, being the next record-breaking year”.

Researchers warn that a strong El Niño risks supercharging extreme weather conditions, contributing to more severe wildfires and droughts in some regions and storms and floods in others.

Scientists warn El Niño could intensify climate extremes in 2026

The UN agency says there is a 91% chance that the key 1.5C warming threshold will be temporarily exceeded again for at least one year between 2026 and 2030. An overshoot in a single year does not mean that the most ambitious global warming goal enshrined in the Paris Agreement has been lost. But the UN conceded last year that a “multi-decadal” breach is very likely to happen within the next decade.

Bill Hare, CEO and senior scientist at Climate Analytics, said the WMO’s warning that hotter years lie just ahead “is a result of governments’ historical failures to cut greenhouse gas emissions at sufficient scale”.

“This increases the need for investment in adaptation to extreme weather events and other impacts of climate change, and increases the loss and damage from such events facing climate-vulnerable nations,” he added in a statement on the update.

‘Astonishing’ early heatwave in Europe

Western Europe has already been gripped by an early-season heatwave this month, with countries including the UK, France and Ireland recording their hottest May temperatures ever.

“Temperatures on this scale were once exceptional even at the height of summer,” said Friederike Otto, professor of climate science at Imperial College London. “Seeing 35C in the UK during spring is absolutely astonishing, but the science is very clear – climate change makes these heatwaves hotter, longer, and far more frequent”.

She added that “temperature records will continue to tumble until we fundamentally halt global emissions and reach net zero”.

In India, extreme heat in recent weeks has also threatened mango and other crops and pushed up power demand to an all-time high as people switch on air-conditioning, while pilgrims in Mecca have conducted their rituals during the annual Hajj pilgrimage in scorching temperatures.

The post El Niño expected to bring next record-hot year as soon as 2027 appeared first on Climate Home News.

Recovering critical minerals from waste such as used batteries, end-of-life vehicles and electronic equipment could meet more than half of Europe’s demand by 2050, a new report says.

Recycling is seen as a potential route for Western countries to reduce their dependence on imports of critical minerals vital for manufacturing clean energy technologies – from electric vehicles (EVs) to solar panels and wind turbines.

In a major report published this Wednesday, the Future Availability of Secondary Raw Materials (FutuRaM) project, a research initiative funded by the European Union, found the bloc could reduce its reliance on mineral supply chains dominated by China if it took advantage of its “urban mines”.

Safer supplies, less mining

Kees Baldé, one of the report’s authors and a senior researcher at the United Nations Institute for Training and Research (UNITAR), said harnessing the critical minerals potential of Europe’s waste streams would be “essential for strengthening supply security, supporting the clean-energy transition, and reducing environmental impacts”.

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The report recommends a “structural shift” in how waste is managed in Europe, as countries currently track these raw materials differently and lack a unified regional market. It also recommends increased investment in industrial capacity for recycling, skills-building and awareness campaigns.

China currently has a firm hold on the production and refining of 19 out of 20 critical minerals identified by the International Energy Agency (IEA), including lithium – a key ingredient in EV batteries – and rare earths, which are used in permanent magnets inside clean technologies such as in EV motors.

In the last year, amid trade tensions with the US and Europe, China has enacted export controls on rare earths and the components made with these magnets, as well as lithium batteries and their components. According to the IEA, this “could lead to increased costs for batteries, with potential knock-on effects on the affordability of EVs and storage”.

The country also currently dominates the recycling of these minerals, as it currently accounts for about 80% of the world’s recovery capacity, according to IEA estimates. In 2024, the Asian nation established the China Resources Recycling Group, a state-owned company leading the push for recovering minerals.

Minerals recovery scenarios

The FutuRaM study analysed Europe’s recycling potential under three scenarios by 2050 – one where business continues as usual, one where recovery conditions are improved and one of full circularity where all of the potential secondary materials are recycled.

In 2022, the baseline year for comparison, about 2 million metric tons of critical minerals were contained in waste, a figure that is projected to grow to up to 6 million tons by 2050 in the 27 EU countries plus Switzerland, Norway, the UK and Iceland.

Some key raw materials among them lithium, cobalt and rare earth elements are largely lost during collection or waste processing today, the report says.

Landmark deal to share Chile’s lithium windfall fractures Indigenous communities

From the 2 million tons of critical minerals found in waste generated, about half was recovered as “secondary raw materials”, which means they are collected in some form but without processing. If all these secondary raw materials already collected were functionally recycled, they could supply up to 56% of Europe’s critical minerals demand by 2050, the study estimates.

The interventions needed depend on the type of waste. For example, end-of-life vehicles already have a high collection rate in the EU, and they contain minerals with a high potential for recoverability such as a variety of rare earth elements, the report says. But most of these minerals are not processed. Recycling EVs, in particular, contributes the most.

“Whether Europe realises this potential depends on the choices made now – on legislation, recycling infrastructure, and data collection. Considering these powerful findings, our mindset needs to shift to think of ‘secondary’ sources of CRMs as the new primary source [mining ores],” said Pascal Leroy, director of the Waste Electrical and Electronic Equipment (WEEE) Forum, which reviewed the report.

A 2026 report by the University of Technology Sydney suggested that increased recycling, along with energy efficiency measures, can help meet the minerals needed for the energy transition by 2050 without increasing mining in sensitive ecosystems like the deep sea or biodiversity hotspots.

The IEA estimates that successfully scaling up recycling can lower the need for new mining
activity by 25-40% by 2050 in a scenario that meets national climate pledges.

The post Recycling could meet half of Europe’s critical mineral needs by 2050 appeared first on Climate Home News.

Just one year ago, Lars Christian Bacher said his career embodied the energy transition – moving from CFO of Norway’s state-controlled oil company Equinor to leading one of Europe’s few home-grown battery makers.

Morrow Batteries was on a mission to compete alongside the industry’s dominant Asian, mainly Chinese, battery producers as Europe sought to reduce its reliance on imports, Bacher told a group of foreign journalists on a sunny day in Oslo last May.

But seven months later, Bacher stepped down as CEO, and earlier this month, Morrow Batteries said it had filed for bankruptcy after its financial situation “deteriorated”.

Coming a year after Swedish battery maker Northvolt filed for bankruptcy, industry analysts said Morrow’s descent into financial difficulties would likely deal a fresh blow to investor confidence in European battery manufacturers – potentially keeping Europe dependent on Chinese energy transition technology for longer.

While bigger European battery makers such as ACC, Verkor and PowerCo – linked to car-makers Stellantis, Renault and Volkswagen, respectively – are still in business, Europe needs to reduce its reliance on China, experts say.

“It’s just such a critical technology that you cannot rely on somebody else,” said Julia Poliscanova, batteries lead at the Brussels-based advocacy group Transport & Environment.

Lars Christian Bacher talks to journalists in Oslo on 13 May 2025 (Photo: Joe Lo) State-backed eco-batteries

Established in 2020, Morrow Batteries expanded its workforce to more than 200 and has the ability to produce three million batteries a year at its factory in the forest outside the coastal city of Arendal, on Norway’s picturesque southern tip. 

Investors in the startup included industrial engineering companies Siemens and ABB, and it received a 550 million krone ($59 million) loan from state development agency Innovation Norway. State-owned energy and investment companies were also among its shareholders.

Morrow has promoted its batteries as particularly sustainable, with solar and hydropower supplying energy to the factory. Its lithium iron phosphate (LFP) batteries do not contain nickel or cobalt, distancing them from the environmental and social problems often linked to critical minerals mining.

“From a sustainability point of view, this is as good as it gets,” Bacher said last May.

He did not immediately respond to a request for comment on the company’s decision to file for bankruptcy proceedings.

Morrow’s LFP battery pack and cells (Photo: Morrow)

It aimed to sell these batteries for energy storage, increasingly important as variable solar and wind power comes to dominate European grids, and for off-road and commercial vehicles. Those sectors, rather than electric cars and motorbikes, were being targeted because they were subject to less ferocious competition from Asia, Bacher said.

Industry experts say Morrow started smaller and slower than Northvolt, was selective about its target customers and secured deals with Finnish environmental technology company Proventia Oy and an unnamed German defence company.

But it still ran into financial trouble.

Cash crunch proves costly

In a statement announcing the bankruptcy, Morrow’s board said it had been trying to secure a new industrial investor and finance, and that “several of the ongoing efforts had reached an advanced stage”.

But these talks “could not be concluded within the constraints imposed by the group’s liquidity situation”, it said, blaming the failure on “the capital requirements inherent in an early industrialisation phase” combined with “increased capital costs, delays in the industrialisation process and a more restrained investment market”. 

Northvolt’s bankruptcy may have also damaged Morrow’s attempts to raise money. Last May, Bacher himself acknowledged that it “didn’t help”. 

Morrow also cited oversupply in the global battery market, and the resulting downward “price pressure”. The price of LFP batteries fell by nearly half between 2022 and 2025, eating into producers’ profit margins, according to the International Energy Agency.

Morrow’s factory near Arendal pictured in June 2024 (Photo: Morrow)

The hefty state investment in Morrow has generated controversy in Norway following its bankruptcy. The leader of the right-wing Progress Party (FrP), Sylvi Listhaug, has said Norwegian taxpayers’ money was wasted on an unviable business. 

But others, like Poliscanova and the head of the European Battery Alliance trade association Emma Nehrenheim, told Climate Home News that if Europe wants a battery industry, it will need to back home-grown manufacturers whole-heartedly.

“Valley of death” kills startups

As European battery manufacturers work to perfect and scale up their technology and processes, they face “a valley of death” with severe competition and little patience from investors or battery customers who “can easily buy them from China”, Poliscanova said.

Startups like Morrow typically raise project financing to get them off the ground, according to Nehrenheim. In the period between that finance ending and reaching profitability, they have to rely on money they set aside as a project reserve. 

If they underestimate this reserve, which she said is easy to do when setting up a new factory making a new product, they need more money to bridge the gap. This can come from specialised bridging investors, from customers or from governments.

For Morrow, however, the money did not arrive in time.

Nehrenheim – who was previously Northvolt’s chief environmental officer – said it was a characteristically European failure from investors.

“We’re not good at this,” she said. “We’re not bold enough to compete with Silicon Valley or the Asian (countries), who have been scaling industry now for decades.”

Clean energy sovereignty vs price

Since Northvolt’s bankruptcy filing, the European Union has announced policies to support European battery makers.

It is introducing a €1.5 billion ($1.7 billion) “battery booster“, providing interest-free loans to battery manufacturers. It is considering putting tariffs on imported batteries, subsidising European battery makers and tying electric car incentives to locally made batteries through the Industrial Accelerator Act. None of these policies are yet in place.

With trade disputes rising up the agenda of UN climate talks, Poliscanova conceded that such moves are protectionist, although she said she prefers to call them industrial policy.

“Honestly,” she said, “the EU and the UK are the two large global blocks left that don’t have such industrial protectionist policies. India has it, Brazil has it, China has it, the US has it – we’re literally the last fool standing thinking that [the World Trade Organization] is the way to go.”

Li Shuo, China Climate Hub director at the Asia Society Policy Institute, said that the trade-offs between cheap foreign batteries and more expensive European ones “need to be discussed honestly”.

“How much higher are Europeans willing to pay?” he said. “How much delay in climate deployment is acceptable? Can we really decarbonise and de-risk at the same time? How long can politicians condemn cheap Chinese imports while consumers simultaneously demand affordability?”

While European policymakers want to fight China, the average European just wants a cheap battery, he added.

Closing the cost gap

But once European battery makers scale up, the price gap with Chinese batteries will shrink, Poliscanova said.

While German LFP battery cells are 90% more expensive than those made in China, scale-up could close this gap to a “sovereignty premium” of just 25% by 2030, Transport & Environment estimates.

Nehrenheim acknowledged that most of Europe’s batteries will continue to come from Asia or the United States. “I’m very happy for that because they’re scaling fast and they get great support subsidies in their respective countries to supply us to help us in the [energy] transition,” she said.

But European-headquartered companies must make at least a quarter of the region’s batteries, she said, otherwise if supply is disrupted – whether by geopolitical factors, a pandemic or natural disaster – the industry will have nothing to scale up from.

Nehrenheim said she was almost 100% confident that Morrow’s factory will continue to produce batteries. The company said it expected a court-appointed bankruptcy administrator to assume control over the company’s assets and operations.

Citing investors’ €1.4 billion ($1.62 billion) reprieve of Swedish green steelmaker Stegra in April, Nehrenheim said there were reasons to be hopeful about Morrow’s survival as Europe demands batteries for diverse uses beyond cars – from energy storage to drones and forklift trucks.

“Somebody will pick this up,” she said.

The post After another battery startup bankruptcy, can Europe ever cut reliance on China? appeared first on Climate Home News.

Adeline Rochet is a programme manager for the Corporate Leaders Group Europe, a business coalition driving the transition to a sustainable, competitive, and resilient economy convened by the University of Cambridge Institute for Sustainability Leadership (CISL).

Europe’s economy depends on the natural world functioning as it should, but the effects of climate change risk undermining increasingly delicate ecosystems. Talks about the European Union’s next long-term budget miss this fact.

Climate-related losses in the EU have already reached €822 billion since 1980, with a quarter of that damage concentrated in just the past four years. Ecosystems are under increasing pressure: more than 80% of protected habitats are in poor condition, soils are degrading and water stress is rising across the continent.

The latest state of the climate report by the EU’s Earth monitoring service Copernicus confirms this worrying state of affairs: 95% of Europe experienced above-average temperatures in 2025.

Economic exposure to nature-related risk is also growing. Businesses, banks and insurers are beginning to reflect this in their risk assessments.

So, will the policymakers in charge of developing the European Union’s next big budget integrate this vision? We are in the midst of finding out.

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Every seven years, the EU must negotiate a new budget that will help fund priorities over a seven-year-long period. The current one, which runs out next year, is worth more than a trillion euros.

Talks about the next multiannual financial framework (MFF) for 2028-2034 are now getting serious and the initial outline of this new budget shows it will focus on competitiveness, resilience and prosperity.

But, as the European Parliament adopted its negotiating position for the crunch budget talks and EU member states shape their approach ahead of a Council meeting on May 26, it is clear that the positioning of nature within this framework is strategically underestimated.

Why nature impacts economic growth 

Back in 2022, France’s nuclear power output was severely affected when heatwaves drove up the temperature of the rivers used to cool atomic reactors, impacting other European countries too. This was particularly poor timing given the energy price crisis triggered earlier that year by Russia’s illegal invasion of Ukraine.

Low river levels caused by drought have also heavily impacted economic activity and growth in countries like Germany, due to the negative effect on inland trade, while degraded fields in the Netherlands combined with heavy rainfall have ruined potato harvests.

These examples show that we cannot detach the health of the European economy from the good functioning of nature.

UN General Assembly backs “climate obligations” set by world’s top court

Nearly three-quarters of businesses in the eurozone rely directly on ecosystem services such as clean water, fertile soils and pollination. That dependency extends into the financial system, where around 75% of bank lending is exposed to companies dependent on these natural assets.

They entirely underpin supply chains and financial stability across the European economy. If load-bearing ecosystems collapse, businesses not only face disruption in their own operations, but they will also be exposed to failures from suppliers and customers.

This is not just a risk for individual companies, it is a threat for the whole system.

A budget that looks greener than it is

According to the latest proposals for the next MFF, a single 35% climate and environmental target will replace priorities that used to have distinct funding. As it stands, biodiversity has a 10% target, yet spending has struggled to reach even 8%, already showing how easily it is put to one side in practice.

In the new framework, biodiversity is absorbed into a broader category with no separate tracking or visibility. Dedicated instruments are folded into larger funding envelopes, and nature-based investments are placed in direct and distorted competition with industrial projects.

These are often faster to deploy and easier to measure, making them more attractive. 

Headline figures reinforce some appearance of ambition, with €587–635 billion allocated to climate and environmental objectives. But since these are aggregated numbers, they do not show how much will reach ecosystem conservation or restoration.

Less visibility, weaker accountability

Biodiversity funding also remains structurally fragile, with around 80% concentrated in agriculture policy rather than supported by a diversified investment strategy.

This shift is structural: nature has been relegated from a defined priority to a mere discretionary allocation, and the governance model reinforces this dynamic.

Webinar: From Santa Marta to Bonn – where next for the fossil fuel transition?

Greater reliance on National and Regional Partnership Plans (NRPPs) moves decision-making into national spending choices, where fiscal and domestic political pressure will likely mean long-term ecosystem investments struggle to compete with short-term economic demands.

The current MFF paints a worrying picture of structural triple risk for nature: reduced visibility, increased competition for funding and weaker accountability.

Nature is critical infrastructure

It is a point worth reiterating: investment in nature offers clear economic returns. Healthy ecosystems drive resilience by reducing exposure to climate damage and supporting local economic activity.

Public finance plays a decisive role in enabling these investments at scale, making budget design a question of risk management and capital allocation.

Nature-based solutions already perform essential economic functions. They regulate water systems, restore carbon sinks, provide a buffer against extreme weather events and support agricultural productivity.

These are characteristics of infrastructure. Energy systems, transport networks and digital capacity are treated as strategic investments because they underpin competitiveness.

Natural systems play the exact same role, so why does the current budget plan not reflect this?

The next EU budget will shape investment for the decade ahead. Its structure will determine how risks are managed and where capital flows. Nature cannot be erased in favour of competing short-term priorities.

In the upcoming negotiations, European leaders still have the option to treat nature as a structural objective and a core asset, supporting Europe’s resilience and long-term competitiveness. But they must act now, before it’s too late. 

The post Nature cannot be ignored by Europe’s next big budget appeared first on Climate Home News.

Like many Yemeni farmers, Salem Abdallah first bought solar panels to power a well pump to irrigate his fruit and vegetable crops. Now, he has a new use for the surplus electricity they generate – a Chinese-made electric pickup truck.

“The roads between villages are rough and my farms aren’t all in one place, so the power and height give me a real advantage,” the 60-year-old told Climate Home News as he charged his plug-in hybrid Geely Riddara in Yemen’s capital of Sanaa, where nearly a dozen charging stations have sprung up in the last two years.

Prices for Abdallah’s Riddara model run from $25,000 to $40,000 – out of reach for all but a few in the impoverished country, where more than a decade of civil war has shattered the economy and made fuel supplies unaffordable for many.

The conflict has also taken a heavy toll on the national grid, which only 12% of Yemenis rely on for electricity, according to the World Bank. 

Many homes and businesses have instead installed off-grid solar systems to confront frequent blackouts and patchy coverage in rural areas, and this improbable solar boom has caught the attention of Chinese electric vehicle (EV) brands.

Solar boom stirs Chinese interest

China’s BYD, Geely and Jetour have opened dealerships in Yemen in recent years, betting that enthusiastic solar uptake, coupled with high fuel prices and shortages, will lead to rapid growth in the nation’s small and incipient EV market, at least among those able to afford the initial outlay.

At the other end of the scale, electric two-wheelers are also starting to make inroads in Yemen among delivery services and salaried employees.

Mohammed Ali, 25, an accountant at an exchange office in Sanaa, said the $1,050 he spent on a Chinese-made electric motorcycle was “the best decision I ever made”.

“I charge my electric motorcycle at work and it saves me transportation expenses and time,” he said.

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But even as the global energy shock caused by the Iran war spurs the shift to electric transport in some lower-income countries, buying an EV still remains an impossible dream for most of Yemen’s 40 million people, said Mustafa Nasr, head of the Yemen-based Centre for Economic Studies and Media.

“Most Yemenis can barely secure their basic needs,” Nasr said.

Shrinking incomes, rising prices

Yemen has been gripped by civil war since 2014, plunging it into one of the world’s worst humanitarian crises. 

Gross domestic product (GDP) per capita is projected to fall to about $384 this year, according to estimates from the International Monetary Fund – less than a quarter of what it was when the war began.

At the same time, petrol and diesel for transport and to power generators have become increasingly out of reach. A litre of petrol in Sanaa costs the equivalent of $0.94 – close to what many Yemenis earn in a day.

A billboard advertising electric car and truck models over a large avenue in Sanaa, Yemen (Photo: Hashed Mozqer) Charging stations spring up

But for those able to buy them, EVs are proving a revolutionary solution to Yemen’s road transport woes. Sustained fuel price rises and solar adoption could push a gradual widening of the market, particularly if EV and battery prices continue to fall, Nasr said. 

For large-scale farmers like Abdallah who already own solar installations generating between 60 and 80 kilowatts, built to run irrigation systems, charging an EV at night is a no-brainer.

EVs started appearing on the streets of Sanaa and the southern port city of Aden in late 2024, when the first charging point was installed by Al-Raebi Company, which holds the concession to build charging infrastructure in Sanaa and several other provinces and also sells electric Farizon trucks and Riddara pickups.

Al-Raebi’s sales manager, engineer Mundhar al-Farran, said the company has sold hundreds of electric vehicles this year to farmers, traders and institutions. Like Abdallah, many of them say EVs’ simpler construction reduces breakdowns, while the immediate torque of electric motors suits Yemen’s mountainous terrain, he said.

Riddara plug-in hybrid vehicles for sale at the Al Raebi car agency in the Jadr neighbourhood in Sanaa, Yemen (Photo: Hashed Mozqer)

There are now 11 charging stations in Sanaa, and one each in Aden, Dhamar, Ibb and Hodeidah. On long inter-provincial routes there is one station per corridor, al-Farran said.

The price per kilowatt at a public charging station is 120 Yemeni rials ($0.22). According to economic expert Ali al-Tuwaiti, this translates to a per-kilometre cost of about 18 rials for an EV – two and a half times less than for a fuel-efficient petrol car.

“The absence of charging infrastructure was the biggest obstacle at the start,” al-Tuwaiti said. “Al-Raebi’s initiative was the first turning point in this sector.”

Al-Raebi is also working to bring fuel station operators into the transition, offering to cover half the cost of installing solar-powered charging equipment and financing the rest, al-Farran said.

Solar power backbone

Such efforts seek to leverage the country’s investments in solar generation. Over recent years, the country has imported solar systems totalling more than 1,000 megawatts of capacity, representing an estimated investment of about $250 million, al-Tuwaiti said.

That accounts for almost a quarter of Yemen’s current electricity needs of 4,500 megawatts, he added.

It has also given an unexpected boost to the climate-vulnerable country’s efforts to further shrink its tiny carbon emissions. Al-Tuwaiti estimates that solar generation now displaces the equivalent of 7,800 barrels of oil and more than 1.2 million litres of diesel per day.

Recent estimates show Yemen contributes only around 0.03%-0.06% of global emissions, with most energy-related emissions coming from transport and power generation.

Chinese electric trucks in the Farizon showroom at the Al Raebi car agency in Sanaa, Yemen (Photo: Hashed Mozqer) China’s BYD starts with hybrids

Yemen’s nascent EV market comes amid faster-than-expected transport electrification in some emerging countries, where Chinese manufacturers are seeking to attract buyers with lower prices in markets seen as having unlocked potential.

China’s EV giant BYD mostly sales hybrid models at its dealership in Aden for now, but it also offers repayment plans for its popular battery electric Seagull car model, which retails for about $13,000. 

The dealer also sells several other models that are available as plug-in hybrids, which tend to be popular in places with limited charging infrastructure and erratic power supplies.

One recent buyer, food trader Amin, 50, paid $50,000 for his new BYD model.

“It’s powerful, has four-wheel drive, and a better launch than modern conventional cars,” he told Climate Home News outside his home, adding that the air conditioning runs efficiently even when stationary – a serious consideration in Aden’s sometimes sweltering heat.

“It’s wonderful … it has all that I want in a car,” he said.

This story was published in collaboration with Egab. 

The post Chinese EV brands woo Yemen’s wealthy elite as war prompts solar boom appeared first on Climate Home News.

New data on international climate finance for 2023 and 2024 suggests that wealthy countries are highly unlikely to have met their pledge to double funding for adaptation in developing nations to around $40 billion a year by 2025 amid cuts to their overseas aid budgets.

At the COP26 climate summit in Glasgow in 2021, all countries agreed to “urge” developed nations to at least double their funding for adaptation in developing countries from 2019 levels of around $20 billion by 2025. Funding for adaptation has lagged behind money to help reduce emissions and remains the dark spot even as the data showed overall climate finance rose to a record $136.7 billion in 2024.

A United Nations Environment Programme report warned last year that wealthy nations were likely to miss the adaptation finance target and the data released on Thursday by the Organisation for Economic Co-operation and Development (OECD) shows that in 2024 adaptation finance was just under $35 billion.

The OECD, a policy forum for wealthy countries, said the increase between 2022 and 2024 was “modest”, adding that meeting the doubling target would require “strong growth” of close to 20% in government funding for adaptation in 2025.

More cuts likely

The OECD’s figures do not go up to 2025, but several nations announced cuts to climate finance last year. The most notable was the abandonment of US pledges to international climate funds by the new Trump administration but the UK, France, Germany and other wealthy European countries also pared back their contributions.

Joe Thwaites, international finance director at the Natural Resources Defense Council, said developed countries were “not on track” to meet the adaptation funding goal.

Power Shift Africa director Mohamed Adow said adaptation finance is needed to expand flood defences, drought-resistant crops, early warning systems and resilient health services as the world warms, bringing more extreme weather and rising seas. “When that money fails to arrive, people lose homes, harvests and livelihoods – and in the worst cases, their lives,” he warned.

Imane Saidi, a senior researcher at the North Africa-based Imal Initiative, called the $35 billion in adaptation finance in 2024 “a drop in the ocean”, considering that the United Nations estimates the annual adaptation needs of developing countries at between $215 billion and $387 billion.

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If confirmed, a failure to meet the goal is likely to further strain relations between developed and developing countries within the UN climate process. A previous pledge to provide $100 billion a year of total climate finance by 2020 was only met two years late, a failure labelled “dismal” by the UAE’s COP28 President Sultan Al Jaber and many other Global South diplomats.

Missing that goal would also raise doubts about donor governments’ commitment to meeting their new post-2025 adaptation finance goal. At COP30 last year, governments agreed to urge developed countries to triple adaptation finance – without defining the baseline – by 2035.

African and other developing countries have pointed to lack of funding as a key flaw in ongoing attempts to set indicators to measure progress on adapting to climate change.

Speaking to climate ministers from around the world in Copenhagen on Wednesday, Turkish COP31 President Murat Kurum stressed the importance of climate finance. “It is easy to say we support global climate action,” he said, “but promises must be kept.”

He said the COP31 Presidency will use the new Global Implementation Accelerator and recommendations in the Baku-to-Belem roadmap, published last year, to scale up climate finance – and will hold donors accountable for their collective finance goals.

He noted that developed countries should this year submit their first reports showing how they will deliver their “fair share” of the new broader finance goal set at COP29 in 2024, to deliver $300 billion a year in climate finance by 2035. They are due to report on this once every two years.

Broader climate finance

The OECD data shows that the overall amount of climate finance – including funding for emissions cuts – provided by developed countries grew fast in 2023 before declining in 2024. In contrast, the amount of private finance developed countries say they “mobilised” increased in both 2023 and 2024, pushing the top-line figure to a record high.

While the OECD does not say which countries provided what amounts, data from the ODI Global think-tank suggests that the 2024 cuts to bilateral climate finance were spread broadly among wealthy nations.

Thwaites of NRDC welcomed the fact that overall climate finance provided and mobilised by developed countries exceeded $130 billion in both 2023 and 2024. He said that this was “well above earlier projections” and “shows that when rich countries work together, they can over-achieve on climate finance goals”.

But Sehr Raheja, programme officer at the Delhi-based Centre for Science and Environment, said these figures are “modest” when set against the new $300-billion goal.

“While the headline total figure of climate finance remains alright,” she said, “declining bilateral climate spending raises important questions about the predictability of high-quality, concessional public finance, which has consistently been a key demand of the Global South.”

Germany’s State Secretary for the Environment Jochen Flasbarth said the figures “make it clear that public funds alone will not suffice” and “the crucial task now is to mobilize significantly more private investment for climate mitigation and adaptation.”

“Private financiers and international capital markets must live up to their responsibilities and invest more heavily in resilient infrastructure, renewable energies, and sustainable development,” he said.

Raheja also lamented that loans continue to dominate public climate finance and that mobilised private finance is concentrated in middle-income countries and on emissions-reduction measures rather than adaptation projects. “Private capital continues to follow bankability rather than climate vulnerability or need,” she added.

Flasbarth echoed Raheja’s concern about the high proportion of loans which he said “places an additional burden on many of the countries most severely affected”.

Ritu Bharadwaj, climate finance and resilience researcher at the International Institute for Environment and Development, said the figures painted an outdated picture as climate finance has since declined as rich countries shrink their overseas aid budgets and increase spending on defence.

Last month, the OECD published figures showing that international aid – which includes climate finance – fell by nearly a quarter in 2025. The US was responsible for three-quarters of this decline. The OECD projects a further decline in 2026.

With Thursday’s climate finance report, the OECD is “publishing a victory lap for 2023 and 2024 at almost the same moment its own aid statistics show the funding base eroding underneath it,” Bharadwaj said.

This article was updated on 22 May 2026 to include Jochen Flasbarth’s comments

The post New data shows rich nations likely missed 2025 goal to double adaptation finance appeared first on Climate Home News.

The UN General Assembly on Wednesday adopted a “historic” resolution calling on countries to comply with their climate obligations, as outlined in a landmark advisory opinion issued last year by the International Court of Justice (ICJ).

Last July, in the opinion first requested by the Pacific island state of Vanuatu, the world’s top court ruled that harming the climate by increasing fossil fuel production may constitute an “international wrongful act”. This could result in affected countries claiming compensation from those responsible, the court said.

To follow up on the ICJ ruling, a dozen nations led by Vanuatu submitted a proposal to the UN’s main deliberative body to recognise the advisory opinion and identify ways of implementing it.

Several large oil-producing nations mounted a late push to weaken the text by introducing last-minute amendments, but the General Assembly rejected those and adopted the resolution with 141 countries in favour at a plenary session in New York.

The resolution urges countries to implement measures to cut carbon emissions, including by tripling renewable energy capacity, “transitioning away from fossil fuels in energy systems”, and phasing out “inefficient” fossil fuel subsidies.

It also requests the UN Secretary-General to draft a report “containing ways to advance compliance with all obligations in relation to the court’s findings” by next year’s UN General Assembly in September 2027.

How countries voted on the UN resolution on the ICJ’s advisory opinion on climate change and human rights Pacific islands celebrate “historic” resolution

The group of Pacific island nations, which led the diplomatic push for the resolution, as well as Latin American nations and the European Union, celebrated its adoption as a “historic” moment, while some countries noted the persistence of diverging views.

Belize’s UN representative Janine Coye-Felson said in a statement on behalf of the Alliance of Small Island States (AOSIS) that the General Assembly resolution, as well as the ICJ advisory opinion, are important because “climate change is not governed only” by the Paris Agreement, but that “climate justice requires the application of the full breath of international law”.

“When future generations look back at this moment, they will ask whether we rose to meet the defining crisis of our time with the full force of international law. Today, this General Assembly answers: yes,” she told the plenary.

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The EU said in a statement during the session that, with the adoption of the resolution, countries are moving beyond “simply recognising” the ICJ’s work and instead “actively upholding the legal integrity” of the multilateral system by seeking to implement the court’s recommendations.

Yet the bloc also warned the process that follows must not “seek to establish new mechanisms or engage in any determination of state responsibility”, referring in particular to the upcoming report by the Secretary-General. Earlier drafts of the resolution contained proposals to establish a register of climate-driven loss and damage and a dedicated compensation mechanism, but these were removed during negotiations on the text.

France’s ambassador to the UN, Jérôme Bonnafont, highlighted the resolution’s provision to reduce dependence on fossil fuels, and said “science clearly establishes their role in climate change”. The recent increase in oil and gas prices, which have soared because of the war in Iran, “underscores the cost vulnerability of this dependence”, he added.

Push-back by oil-producing nations

Some oil-producing countries – among them the US, Saudi Arabia and Russia – were critical of the new resolution, arguing that it creates “quasi-binding” obligations from an advisory opinion that should be non-binding, and rejected the request for a report from the Secretary-General.

“This is a direct duplication of work that is being done at the [UN climate convention],” said Russia’s delegate. “Creating a parallel process will waste resources, will undermine the fragile consensus at the conference of the parties and will lead to the fragmentation of the climate regime.”

In an effort to weaken the resolution, a group of seven oil-producing Middle Eastern states – including Saudi Arabia, Kuwait and Iran – tabled four last-minute amendments proposing to delete certain paragraphs and softening the language on the obligations of states.

Webinar: From Santa Marta to Bonn – where next for the fossil fuel transition?

In response, Pacific island nations said these amendments sought to “reopen provisions that were [the] subject of extensive negotiation”, while the EU added that they were “difficult to reconcile with the spirit of cooperation”. They were all rejected in a series of votes.

The US, for its part, described the resolution as “highly problematic” and denied the obligation of preventing climate harm beyond its borders, as well as the assertion that climate change is an “unprecedented civilizational challenge”. The country urged others to vote against the resolution.

India, which abstained, said the text failed to address the need for climate finance flows from developed to developing countries, which is “a serious omission”. The Indian delegate pointed to the absence of the term “climate finance” in the text, which “deserves more attention in a resolution that deals with the obligations of states”.

“Turning point in accountability”, activists say

WWF’s climate chief and former COP president Manuel Pulgar-Vidal said the General Assembly’s vote was a step forward that “raises the pressure on all states to act in line with their obligations”.

Rebecca Brown, CEO of the Center for International Environmental Law (CIEL), said the UN resolution shows that “multilateralism works” and with it, countries “carry the ICJ’s historic ruling forward as a roadmap for climate action and accountability”.

“By acting together, we can prevent further climate harm, in line with science and the law, by speeding up a just and equitable transition away from fossil fuels, protecting climate-vulnerable communities, and advancing climate justice,” she added in a statement.

Vishal Prasad, director of Pacific Islands Students Fighting Climate Change – a group of young people who first made the push for an advisory opinion from the ICJ – said “the world has not only reaffirmed that ruling, but committed to making it a reality”.

“This must be a turning point in accountability for damaging the climate. Communities on the frontlines, like in the Pacific, have been waiting far too long and continue to pay too high a price for the actions of others,” he said. “The journey of this idea from classrooms in the Pacific to The Hague and the United Nations gives us continued hope that when people organise, the world can be moved to act.”

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