In Kenya’s Laikipia County where temperatures can reach as high as 30 degrees Celsius, a local building technology is helping homes stay cooler while supporting education, creating jobs and improving the livelihoods and resilience of community residents, Climate Home News found on a visit to the region.
Situated in a semi-arid dryland area, houses in Laikipia are mostly built with wood or cement blocks with corrugated iron sheets for roofing. This building method usually leaves the insides of homes scorching hot – and as global warming accelerates, the heat is becoming unbearable.
Peter Muthui, principal of Mukima Secondary School in Laikipia County, lived in these harsh conditions until 2023, when the Laikipia Integrated Housing Project began in his community.
The project uses compressed earth block (CEB) technology, drawing on traditional building methods and local materials – including soil, timber, grass and cow dung – to keep buildings cool in the highland climate. The thick earth walls provide insulation against the heat.
“Especially around the months of September all the way to December, it is very, very hot [in Laikipia], but as you might have noticed, my house is very cool even during the heat,” Muthui told Climate Home News.
His school has also deployed the technology for classrooms and boarding hostels to ensure students can carry on studying during the hottest seasons of the year. This way, they are protected from severe conditions and school closures can be avoided. In South Sudan, dozens of students collapsed from heat stroke in the capital Juba earlier this year, causing the country to shutter schools for weeks.
The buildings and construction sector accounts for 37% of global emissions, making it the world’s largest emitter of greenhouse gases, according to the UN Environment Programme (UNEP). While calls to decarbonise the sector have grown, meaningful action to cut emissions has remained limited.
At COP28 in Dubai, the United Arab Emirates and Canada launched the Cement and Concrete Breakthrough Initiative to speed up investment in the technologies, policies and tools needed to put the cement and concrete industry on a net zero-emissions path by 2050.
Canada’s innovation minister, François-Philippe Champagne, said the initiative aimed to build a competitive “green cement and concrete industry” which creates jobs while building a cleaner future.
Momentum continued at COP30, where the Intergovernmental Council for Buildings and Climate (ICBC) held its first ministerial meeting and adopted the Belém Call for Action for Sustainable and Affordable Housing.
Coordinated by UNEP’s Global Alliance for Buildings and Construction, the council has urged countries to embed climate considerations into affordable housing from the outset, “ensuring the drive to deliver adequate homes for social inclusion goes hand in hand with minimising whole-life emissions and
environmental impacts”.
With buildings responsible for 34% of energy-related emissions and 32% of global energy demand, and 2.8 billion people living in inadequate housing, the ICBC stressed that “affordable, adequate, resource-efficient, low-carbon, climate-resilient and durable housing is essential to a just transition, the achievement of the Sustainable Development Goals and the effective implementation of the Paris Agreement”.
By using locally sourced materials, and just a little bit of cement, the compressed earth technology is helping residents in Kenya’s Laikipia region to build affordable, climate-smart homes that reduce emissions and environmental impacts while creating economic opportunities for local residents, said Dacan Aballa, construction manager at Habitat for Humanity International, the project’s developers.
Aballa said carbon emissions in the construction sector occur all through the lifecycle, from material extraction, processing and transportation to usage and end of life. However, by switching to compressed earth blocks, residents can source materials available in their environment, avoiding nearly all of that embedded carbon pollution.
According to the World Economic Forum (WEF), global cement manufacturing is responsible for about 8% of total CO2 emissions, and the current trajectory would see emissions from the sector soar to 3.8 billion tonnes per year by 2050 – a level that, compared to countries, would place the cement industry as one of the world’s top three or four emitters alongside the US and China.
Tripling adaptation finance is just the start – delivery is what matters
Comparing compressed earth blocks and conventional materials in terms of carbon emissions, Aballa said that by using soil native to the area, the process avoids the fossil fuels that would normally have been used for to produce and transport building materials, slashing carbon and nitrogen dioxide emissions.
The local building technology also helps save on energy that would have been used for cooling these houses as well as keeping them warm during colder periods, Aballa explained.
Justin Atemi, water and sanitation officer at Habitat for Humanity, said the brick-making technique helps reduce deforestation too. This is because the blocks are left to air dry under the sun for 21 days – as opposed to conventional fired-clay blocks that use wood as fuel for kilns – and are then ready for use.
Africa’s red clay soil was long used as a building material for homes, before cement blocks and concrete became common. However, the method never fully disappeared. Now, as climate change brings higher temperatures, this traditional building approach is gaining renewed attention, especially in low-income communities in arid and semi-arid regions struggling to cope with extreme heat.
From Kenya’s highlands to Senegal’s Sahelian cities, compressed earth construction is being repurposed as a low-cost, eco-friendly option for homes, schools, hospitals – and even multi-storey buildings.
Senegal’s Goethe-Institut in Dakar was constructed primarily using compressed earth blocks. In Mali, the Bamako medical school, which was built with unfired mud bricks, stays cool even during the hottest weather.
And more recently, in Nigeria’s cultural city of Benin, the just-finished Museum of West African Art (MOWA) was built using “rammed earth” architecture – a similar technology that compresses moist soil into wooden frames to form solid walls – making it one of the largest such structures in Africa.
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David Sathuluri is a Research Associate and Dr. Marco Tedesco is a Lamont Research Professor at the Lamont-Doherty Earth Observatory of Columbia University.
As climate scientists warn that we are approaching irreversible tipping points in the Earth’s climate system, paradoxically the very technologies being deployed to detect these tipping points – often based on AI – are exacerbating the problem, via acceleration of the associated energy consumption.
The UK’s much-celebrated £81-million ($109-million) Forecasting Tipping Points programme involving 27 teams, led by the Advanced Research + Invention Agency (ARIA), represents a contemporary faith in technological salvation – yet it embodies a profound contradiction. The ARIA programme explicitly aims to “harness the laws of physics and artificial intelligence to pick up subtle early warning signs of tipping” through advanced modelling.
We are deploying massive computational infrastructure to warn us of climate collapse while these same systems consume the energy and water resources needed to prevent or mitigate it. We are simultaneously investing in computationally intensive AI systems to monitor whether we will cross irreversible climate tipping points, even as these same AI systems could fuel that transition.
Training a single large language model like GPT-3 consumed approximately 1,287 megawatt-hours of electricity, resulting in 552 metric tons of carbon dioxide – equivalent to driving 123 gasoline-powered cars for a year, according to a recent study.
GPT-4 required roughly 50 times more electricity. As the computational power needed for AI continues to double approximately every 100 days, the energy footprint of these systems is not static but is exponentially accelerating.
UN adopts first-ever resolution on AI and environment, but omits lifecycle
And the environmental consequences of AI models extend far beyond electricity usage. Besides massive amounts of electricity (much of which is still fossil-fuel-based), such systems require advanced cooling that consumes enormous quantities of water, and sophisticated infrastructure that must be manufactured, transported, and deployed globally.
A single data center can consume up to 5 million gallons of drinking water per day – sufficient to supply thousands of households or farms. In the Phoenix area of the US alone, more than 58 data centers consume an estimated 170 million gallons of drinking water daily for cooling.
The geographical distribution of this infrastructure matters profoundly as data centers requiring high rates of mechanical cooling are disproportionately located in water-stressed and socioeconomically vulnerable regions, particularly in Asia-Pacific and Africa.
At the same time, we are deploying AI-intensive early warning systems to monitor climate tipping points in regions like Greenland, the Arctic, and the Atlantic circulation system – regions already experiencing catastrophic climate impacts. They represent thresholds that, once crossed, could trigger irreversible changes within decades, scientists have warned.
Yet computational models and AI-driven early warning systems operate according to different temporal logics. They promise to provide warnings that enable future action, but they consume energy – and therefore contribute to emissions – in the present.
This is not merely a technical problem to be solved with renewable energy deployment; it reflects a fundamental misalignment between the urgency of climate tipping points and the gradualist assumptions embedded in technological solutions.
The carbon budget concept reveals that there is a cumulative effect on how emissions impact on temperature rise, with significant lags between atmospheric concentration and temperature impact. Every megawatt-hour consumed by AI systems training on climate models today directly reduces the available carbon budget for tomorrow – including the carbon budget available for the energy transition itself.
The deeper issue is that governance frameworks for AI development have completely decoupled from carbon budgets and tipping point timescales. UK AI regulation focuses on how much computing power AI systems use, but it does not require developers to ask: is this AI’s carbon footprint small enough to fit within our carbon budget for preventing climate tipping points?
There is no mechanism requiring that AI infrastructure deployment decisions account for the specific carbon budgets associated with preventing different categories of tipping points.
Meanwhile, the energy transition itself – renewable capacity expansion, grid modernization, electrification of transport – requires computation and data management. If we allow unconstrained AI expansion, we risk the perverse outcome in which computing infrastructure consumes the surplus renewable energy that could otherwise accelerate decarbonization, rather than enabling it.
Resolving this paradox requires, for example, moving beyond the assumption that technological solutions can be determined in isolation from carbon constraints. It demands several interventions:
First, any AI-driven climate monitoring system must operate within an explicitly defined carbon budget that directly reflects the tipping-point timescale it aims to detect. If we are attempting to provide warnings about tipping points that could be triggered within 10-20 years, the AI system’s carbon footprint must be evaluated against a corresponding carbon budget for that period.
Second, governance frameworks for AI development must explicitly incorporate climate-tipping point science, establishing threshold restrictions on computational intensity in relation to carbon budgets and renewable energy availability. This is not primarily a “sustainability” question; it is a justice and efficacy question.
Third, alternative models must be prioritized over the current trajectory toward ever-larger models. These should include approaches that integrate human expertise with AI in time-sensitive scenarios, carbon-aware model training, and using specialized processors matched to specific computational tasks rather than relying on universal energy-intensive systems.
The fundamental issue is that the energy-system tipping point paradox reflects a broader crisis in how wealthy nations approach climate governance. We have faith that innovation and science can solve fundamental contradictions, rather than confronting the structural need to constrain certain forms of energy consumption and wealth accumulation. We would rather invest £81 million in computational systems to detect tipping points than make the political decisions required to prevent them.
The positive tipping point for energy transition exists – renewable energy is now cheaper than fossil fuels, and deployment rates are accelerating. What we lack is not technological capacity but political will to rapidly decarbonize, as well as community participation.
IEA: Slow transition away from fossil fuels would cost over a million energy sector jobs
Deploying energy-intensive AI systems to monitor tipping points while simultaneously failing to deploy available renewable energy represents a kind of technological distraction from the actual political choices required.
The paradox is thus also a warning: in the time remaining before irreversible tipping points are triggered, we must choose between building ever-more sophisticated systems to monitor climate collapse or deploying available resources – capital, energy, expertise, political attention – toward allaying the threat.
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At Climate Home News, we found this year a pretty depressing one to cover, shaped as it was by Donald Trump’s attacks on climate science and action at home and abroad – and rounded off by the UN declaring global warming will break through the key 1.5C limit the world set itself in 2015.
But it wasn’t all bad. Nobody had decided to follow the US out of the Paris Agreement by the time it turned 10 this month. Anti-climate candidates in Canada and Australia, backed by Trump, lost elections convincingly. And 2025 may also have been the year carbon dioxide emissions fell for the first time.
What’s more, our reporting this year saw results in the real world. After we revealed that Chilean doctors believe pollution from copper mines in the northern hub of Calama is causing autism, campaigners sued state-owned mining company Codelco. The case is ongoing.
One of the lawyers representing the campaigners said “when [Climate Home News] revealed our silent suffering and our fight, we felt we had finally been heard and had entered the national conversation thanks to international media coverage. That was the final push to file the lawsuit.”
If you want to fund more impactful reporting like this in 2026, please subscribe and unlock all of our content for just the price of a coffee per week. Or to keep up with our latest coverage, you can sign up for our free newsletter and follow us on LinkedIn, Instagram, BlueSky and Facebook.
Below are nine of our best stories this year and, if that’s not enough, here’s nine more from 2024.
In the year of trade wars, Trump extended Biden-era tariffs on solar panels from China to neighbouring countries. Nicha Wachpanich spoke to some of those workers who subsequently lost their jobs making panels at Chinese-run factories in Thailand and found that the US levies and bad behaviour by bosses had combined to crush their dreams of a better life.
Trump being Trump, and axing US climate finance, is no reason to let other wealthy donor nations off the hook. We examined the latest spreadsheets for annual adaptation aid and found Japan is counting support for massive infrastructure projects in its figures, despite them having only a dubious role in helping people adapt to climate change.
Our reporter Tanbirul Miraj Ripon visited one such project – the Matarbari port in Bangladesh. He found that the port handles coal and gas imports and has destroyed locals’ homes and livelihoods. Despite this, on paper it represents $363 million in Japanese climate adaptation finance, the biggest single climate resilience project being funded by a wealthy country in 2023.
Other nations are trying hard to go green but finding it tricky. This year, Ethiopia hosted the Africa Climate Summit, was selected as the host of COP32 and opened the continent’s biggest hydropower dam.
It plans to use some of this clean power to charge electric vehicles, after banning imports of cars with internal combustion engines (even as the European Union is softening its own 2035 ban on ICEs). While that will reduce Ethiopia’s already tiny emissions and its fossil fuel import bills, it won’t be easy in a nation where only half the population has electricity access, as Solomon Yimer and Vivian Chime reported.
Other African governments are trying to cash in on their minerals, which big players like China, the US and increasingly Saudi Arabia want for green technologies and/or making equipment for wars.
Pamela Kapekele went to look at the situation in Zambia’s Copperbelt province – where you can probably guess what they produce! She found that good tax regulations and working conditions will be needed if locals are to see the benefits of surging demand for the metal.
Later in the year, an acid spill from a copper-mine tailings dam that contaminated the country’s main river showed the value of environmental regulation too. Reporting from Nigeria’s lithium and South Africa’s platinum mines also highlighted the challenges of making minerals mining and processing cleaner and fairer for communities.
Some sectors – like international aviation and shipping – tend to fall outside the scope of national media, and it’s a gap we’ve aimed to fill. Together with Singapore’s Straits Times, we tracked the supply chain for what the airline industry calls “Sustainable Aviation Fuel” (SAF) and found that virgin and barely used palm oil – which threatens rainforests – is being passed off as waste cooking oil and used to power planes in Europe.
Malaysia is a particular hotspot for this fraud, as government subsidies there make virgin palm oil cheap in the shops – and it can be sold for a higher price as “used” cooking oil, providing a profit motive for flipping it. Our investigation was picked up by the Financial Times, Bloomberg and the Malaysian authorities, who have since launched a crackdown on this kind of fraud.
But with verification of the materials used for SAF relying on just a handful of commercial auditors conducting mainly paper-based checks, airlines currently cannot know for sure if their green jet fuel is actually sustainable. Their advertising to passengers should – but often doesn’t – reflect this uncertainty.
Our reporting was often prescient this year. We called it correctly that the US would leave the Paris Agreement but not the UNFCCC, that Argentina would not follow America out of Paris, that Ethiopia rather than Nigeria would be chosen as COP32 host and that petrostates would try to kill a new green shipping framework at the International Maritime Organization.
We are also pretty sure we were the first – at least in English – to pick up on Brazilian Environment Minister Marina Silva’s proposal for COP30 to agree on a roadmap away from fossil fuels, which she aired back in June at London Climate Week. That proposal was pushed by President Lula at the start of COP30, dominated much of the conversation at the summit and will continue to be discussed throughout 2026.
In the summer of 2025, our crack investigative reporter Matteo Civillini got the scoop on how the Brazilian government, via a contract tendered by the UN, was working with Edelman on international media relations for the COP30 climate summit while the global PR giant was simultaneously engaged in promoting Shell’s fossil fuel interests in Brazil.
This story was picked up by a range of other media, and amplified calls for agencies whose clients include fossil fuel firms to be excluded from the climate negotiations. Advocacy group Clean Creatives was inspired by Matteo’s reporting to launch a campaign against Edelman’s COP involvement. That culminated in an open letter from influencers and creators with a combined audience of over 24 million calling for Edelman to be dropped. The drumbeat on this theme is likely to get louder in 2026.
And talking of smoke and mirrors, just when we thought the murky web of carbon offsetting linking oil and gas major Shell to sham rice-farming projects in China couldn’t get any more convoluted, it did exactly that.
By combing through the records of carbon-credit registry Verra – the world’s biggest – Matteo confirmed that nearly a million bogus offsets from 10 disqualified methane reduction projects had been compensated for with the same number of junk credits from another four such projects that were also axed by Verra.
“It’s frankly unbelievable that Verra considers it appropriate to compensate for hot air credits with other hot air credits,” Jonathan Crook, policy lead at Carbon Market Watch, told us. “To pretend this is a satisfactory resolution is both absurd and deeply alarming.”
Verra insists the replacement credits were technically available to plug the gap left by the first batch – even though the second set, too, now need to be swapped out. Shell is keeping its distance, saying it does not manage or operate “the projects in question” despite being earlier involved in the Chinese rice-farming programmes as their “authorised representative”. Mind-boggling indeed!
In what was on balance a bad year, we brought you some hope too. A landmark advisory opinion on climate change and human rights from the International Court of Justice in The Hague was stronger than anyone imagined and may open the door to lawsuits against polluting countries and companies in 2026.
Other good news stories included analysts suggesting China’s fossil fuel use could peak this year, the UN’s loss and damage fund launching its first call for proposals, South Korea and Morocco moving to phase out coal and a boom in imports of solar panels to Africa.
Hope came too from ordinary people and their ingenuity – like the untrained Jordanians interviewed by Yamuna Matheswaran, hooking up solar panels to old Tesla batteries, lowering both their electricity bills and their carbon emissions into the bargain.
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As countries come under growing pressure to tackle planet-heating methane emissions from the fossil fuel sector, oil and gas producers in COP host nations Brazil and Azerbaijan are struggling to prevent large leaks of methane, data shared with Climate Home News shows.
Satellite observations detected “super-emitting” methane plumes in the two countries this year that were visible from space and linked to state oil companies in both cases. Brazil presided over this year’s COP30 climate talks, while COP29 was in Azerbaijan.
Methane is a greenhouse gas that traps about 80 times more heat in the atmosphere than carbon dioxide but has a shorter life span. If global warming is to stay below 1.5C, the International Energy Agency (IEA) estimates that methane emissions from fossil fuels would need to fall by 75% by 2030.
At COP26 in 2021, a group of more than 100 countries announced their intention to cut methane emissions across all sectors by 30% from 2020 levels by the end of this decade. But a UN Environment Programme (UNEP) assessment shows they are instead set to rise 5% by 2030.
At COP30 this November, Brazil’s Environment Minister Marina Silva said that reducing methane emissions “gives us an opportunity to keep the planet’s average temperature [rise] within 1.5C, decreasing the frequency, intensity and impact of extreme weather events and protecting lives”.
And last year, Rovshan Najaf, president of Azerbaijan’s state oil company SOCAR, promised that the firm would achieve near-zero methane emissions in its oil and gas production by 2035.
However, the latest data available from Azerbaijan’s SOCAR shows that the company’s methane emissions more than tripled from 2023 to 2024, when the country hosted COP29. SOCAR identified about 200,000 tonnes of methane emissions from its business activities in 2024.
Brazilian state-oil company Petrobras, meanwhile, did manage to reduce its methane emissions by more than half between 2015 and 2022, but they have since stayed stagnant, at about a million tonnes of CO2-equivalent emitted per year, the company’s annual sustainability data shows.
“Reducing methane has significant impacts on a country’s ability to meet its climate commitments,” said Tengi George-Ikoli, a methane expert with the National Resource Governance Institute (NRGI).
“Countries like Brazil and Azerbaijan, who have hosted COPs, should be seen to commit to those efforts more so than others,” she emphasised.
In 2025, UNEP’s International Methane Emissions Observatory (IMEO) alerted countries globally – including Brazil and Azerbaijan – to around 2,200 instances linking their oil and gas production to super-emitting events.
Both Brazil and Azerbaijan have focal points that receive these IMEO alerts. But a recent report shows that 90% of the notifications did not even receive a response, and neither Brazil nor Azerbaijan are listed in the 25 successful cases that managed to reduce emissions thanks to this system.
In Azerbaijan, persistent large-scale methane emissions have been detected over its southern coast – a hub for its oil and gas industry – during the past two years, according to satellite data from online monitoring platform Carbon Mapper.
When satellites passed over the region in mid-2024, as Azerbaijan prepared to host the COP29 climate summit, they spotted a handful of massive methane plumes, each releasing between 2,000 and 4,000 kilogrammes of methane per hour, dozens of times above the threshold for a “super-emitting” event.
According to Carbon Mapper’s data, methane emissions from the same locations still persisted a year later at comparable or even higher levels.
It is impossible to pinpoint precisely the source of those emissions without ground-level monitoring. But satellite data suggests that methane was released both from pipelines – which may be leaking – and compressor stations, which are facilities that help keep fossil gas flowing by boosting its pressure.
Throughout this year, large methane plumes have been observed by satellites emanating from a facility run by SOCAR in one of the world’s oldest oil fields, located just a few miles from Baku’s swanky waterfront boulevard.
In its 2025 sustainability report, SOCAR said it had expanded its methane emissions monitoring by using “leak detection AI tools”, drones and satellite technologies that “enabled more targeted, data-driven responses and supported the development of effective mitigation measures across operational sites”.
In Brazil, state-oil company Petrobras has been linked to three methane “super-emitting events” detected by satellites this year, which raises questions about emissions from its offshore oil and gas production facilities.
Three large methane plumes were detected in the Santos basin off the coast of Rio de Janeiro – which holds several of Brazil’s largest oil and gas fields – by Carbon Mapper on April 23.
Further analysis by environmental nonprofit SkyTruth, which specialises in satellite observations, revealed the plumes came from vessels in the Tupi field, which is majority-owned by Petrobras. Two of the vessels are operated by Dutch company SBM and the other by Petrobras.
The plumes in the Santos basin were large enough to be considered “super-emitting” methane events, on a scale similar to leaks in the same category detected in other parts of the world.
The US Environmental Protection Agency defines these as events with a rate of emissions of 100 kg of methane per hour. Two of the plumes detected in Brazil were above 300 and one was above 700 kg of methane per hour.
The events in Brazil are “particularly stunning” and could point to a more persistent issue, SkyTruth’s CEO John Amos told Climate Home, because the three plumes were detected during just one observation by a satellite orbiting the area.
“For one attempt to produce three positive plumes suggests that this could be a systematic problem offshore,” he said.
Asked about these cases, Petrobras told Climate Home in a statement that the company is committed to reducing methane emissions as part of its decarbonisation strategy. It added that, because the plumes were detected by a single satellite observation, “the ability to draw broader conclusions about the consistency and magnitude of emissions over time is limited”.
The company also highlighted that its assets in the Santos basin perform “within the industry’s first quartile” for emissions per barrel of oil and noted that “initiatives such as recovering flare gas and performing leak detection and repair campaigns have helped to mitigate methane emissions”.
Petrobras also said that “during the period in question, operational conditions were under normal circumstances”.
Amos argued that if the sector considers such super-emitter plumes of methane – observable from space – “to be a consequence of ‘normal operating conditions’, then the offshore methane problem may be far worse than we anticipated”.
Just days before COP30, Petrobras executives co-chaired an offshore oil and gas conference in Rio de Janeiro. The discussions, the organisers wrote in a welcome letter, would focus on “traditional oil and gas technologies while highlighting the innovations essential for a more sustainable future” and would be “strategically positioned amid the ongoing energy transition”.
As global greenhouse gas emissions have continued to rise, with the United Nations admitting in November that an overshoot of the 1.5C warming limit is now inevitable, action on methane garnered growing attention at COP30.
New initiatives were launched at the climate summit in Belém to tackle methane emissions from the production of fossil fuels, which accounts for about a third of global emissions from this “super pollutant”, with other key sources being agriculture and waste management.
The UK launched a declaration to “drastically reduce” methane from the fossil fuel sector, which was endorsed by 11 countries including major oil and gas producers Canada, Norway and Kazakhstan. The actions it supports include more transparent monitoring, eliminating routine flaring and venting, and tracking progress towards near-zero methane emissions per unit of production.
The UK and Brazil also launched a three-year $25-million funding package to help developing countries tackle methane, among other “super pollutant” gases, which will benefit a first cohort of mostly fossil fuel-producing countries – among them Brazil, Kazakhstan, Mexico and Nigeria.
At last year’s COP29, the European Union championed an initiative that encouraged fossil fuel-producing countries to create roadmaps towards abating methane emissions from coal, oil and gas, including timelines, investment needs and the amount of emissions to be abated.
But, as a growing clutch of voluntary initiatives has failed to produce results at the scale and speed needed to rein in global warming in the short term, pressure is rising for a more accountable and comprehensive approach to the problem.
At COP30, Barbados’ Prime Minister Mia Mottley renewed her call for a legally binding methane pact to “pull the methane emergency brake” and “buy us some time”, starting with actions in the oil and gas industry.
NRGI’s George-Ikoli said the oil and gas sector could lead on cutting methane emissions because measures like zero flaring and venting, and eliminating leaks could bring in revenues for companies by enabling them to use or sell currently wasted gas.
Mottley wrote in an op-ed for The Guardian this month that the next step would be to convene heads of state from willing nations to develop “a roadmap in 2026 for binding measures for the oil and gas industry”. Negotiations could start by 2027, with a deal adopted “as soon as possible thereafter”, she proposed.
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Despite multi-billion-dollar energy transition deals agreed with wealthy nations and development banks in 2022, coal use in Indonesia and Vietnam will continue to grow until at least 2030, the International Energy Agency (IEA) forecasts.
In its annual coal report, the Paris-based agency estimates that coal use will rise 4.5% a year between 2025 and 2030 in Southeast Asia, with Indonesia, Vietnam and the Philippines largely responsible for the increase. Coal-heavy India is also set for a 3.3% rise this decade.
Growth in these nations will offset large declines in coal use in developed countries and a smaller fall in China, the IEA said, causing global coal demand to plateau and edge down only slightly by 2030.
For this year, the report finds that global coal demand is set to rise by 0.5%, reaching a record 8.85 billion tonnes. In the US, higher natural gas prices and policy measures slowing the retirement of coal plants lifted consumption, which had been on a downward trend for the previous 15 years, it notes.
Big banks’ lending to coal backers undermines Indonesia’s green plans
When burned, coal’s planet-heating emissions are far larger than other fossil fuels like oil and gas. Quickly reducing the use of coal is critical to meet climate goals, experts say, and countries agreed to phase it down at the COP26 climate summit in Glasgow in 2021.
A group of donor nations launched Just Energy Transition Partnerships (JETPs) in 2021 and 2022 to help accelerate a transition away from coal in key countries like South Africa, Vietnam and Indonesia.
But responding to a question from Climate Home News, Keisuke Sadamori, the IEA’s director of energy markets and security, told a press briefing this week that the JETPs in Indonesia and Vietnam had so far failed to “bend the curve”.
Fabby Tumiwa, head of the Institute for Essential Services Reform (IESR) who advised the Indonesian government on the JETP deal, said the country’s JETP is “stalling” partly because the wealthy country partners have not funded the early retirement of coal-fired power plants.
A draft Indonesian energy plan seen by Climate Home News in August 2023 said Indonesia would retire a sixth of its coal-fired power plant capacity by 2030.
But, after a row over finance with rich nations, that target was dropped from the final version published later that year. Instead, the plan said Indonesia would start shutting down coal plants before their scheduled closure no earlier than 2035.
Tumiwa told Climate Home News that the lack of international funding for early retirement has made it harder for JETP partner countries – including Germany, Japan and the UK – to ask Indonesia to stop building new coal-fired power plants.
Even beyond 2030, early closures look in doubt. Recently, PLN cancelled a plan to shut down the Cirebon-1 coal-fired power plant seven years early in 2035, citing the high cost of compensating the plant’s owner – despite promised financial support from the Asian Development Bank under its Energy Transition Mechanism.
Think-tank IESR argues that the health benefits from shutting down the polluting plant early would outweigh the financial costs, and that keeping the plant open is a sign that the government’s commitment to the energy transition is weakening.
Indonesia’s Chief Economic Minister Airlangga Hartarto said earlier this month that the Cirebon-1 plant is less polluting than others in Indonesia so it would be better to shut down those dirtier, older facilities first.
Tumiwa said another flaw in the JETP was its focus on coal power stations that provide electricity to the grid rather than “captive” coal power plants which directly power nearby industrial facilities including nickel and aluminium smelters.
By the time those working on the JETP realised that captive coal accounted for a significant chunk of capacity, it was too late to change the JETP’s design, Tumiwa said.
The IEA report said that coal use in Indonesia and Vietnam will rise mainly because of expanding electricity demand driven by economic and population growth. In Indonesia, in particular, the use of coal in industries like nickel and aluminium is increasing, the report added. In Vietnam, the power-hungry manufacturing sector has driven the surge in coal consumption.
In both countries, JETP funding for clean energy has trickled in only slowly. Indonesia’s JETP, which promised to mobilise $20 billion by 2027, has delivered $3 billion so far, mostly as concessional loans. Japan has been by far the largest donor, providing almost $2 billion. In Vietnam, only three projects have progressed to funding arrangements, totaling less than $1 billion.
The IEA report said discussions have “intensified” in Indonesia around energy security, affordability and orderly transition pathways. The country has large reserves of relatively cheap coal and the country’s state-owned electricity company PLN has encouraged investment in coal mining and transportation.
Vietnam has also watered down its plans to shut coal plants and has imprisoned environmental campaigners. In May, European governments announced loans for a transmission line and two hydropower plants under the JETP, but no plans for early coal plant closures.
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