KOROR, PALAU, Monday 31 August 2026 — As Pacific leaders gather for the 55th Pacific Islands Forum Leaders Meeting in Palau from today, Greenpeace Australia Pacific is urging Prime Minister Anthony Albanese to stand with Pacific family by keeping Pacific needs at the heart of negotiations, backing longstanding Pacific leadership, supporting Pacific energy sovereignty and ocean custodianship, and holding the line on 1.5°C.
Against the backdrop of tense geopolitical turmoil, increasingly frequent and lethal extreme weather disasters, the threat of deep sea mining and an energy crisis driven by fossil fuel dependence, the Pacific Islands Forum Leaders Meeting (PIFLM) is a critical moment for Pacific nations to unite with Pacific needs central to regional dialogue.
The climate crisis, security, the opportunities of renewable energy in the Pacific, ocean protection, and the shifting political landscape will be the focus of the Forum’s discussions.
Speaking from Palau, Shiva Gounden, Head of Pacific at Greenpeace Australia Pacific, said:
“The Pacific Islands Forum is the most important multilateral forum in our region, unifying the Pacific under increasingly turbulent global circumstances. We are urging Forum members, including Australia, to not lose focus of Pacific priorities of climate and oceans amid noise and external pressures at this year’s meeting.
“It is very clear that the greatest security threat to our region is climate change and the only way we can address that is through a just transition away from fossil fuels. Regional cooperation is an antidote to climate chaos and geopolitical tension – together, our region can be guided by Pacific nations’ legacy of leadership from the frontlines of the climate crisis, as we build a more peaceful and secure world.
“This year’s Forum will set the stage as we build momentum toward COP31 and a Fossil Fuel Free Pacific. Australia must back Pacific energy sovereignty as a solution to the compounding threats facing our region, including soaring costs of living and increasingly lethal extreme weather disasters, and resist the militarisation of our oceans, deep sea mining, and power politics.
“We must not lose sight of what is needed. The regional adoption of Pacific-led solutions, a Pacific pre-COP with focus on advancing the just transition away from fossil fuels and community-targeted finance for strong and resilient futures beyond fossil fuels must be the foundations of this year’s Forum discussion. What we need now is stronger political will.”
Also in Palau, Dr Simon Bradshaw, COP31 Lead and climate expert at Greenpeace Australia Pacific, said:
“Prime Minister Albanese faces a major test of Australia’s climate credibility and Pacific partnership this week. We cannot be a friend to the Pacific and continue to expand fossil fuel production. The best way for Australia to remain the Pacific’s security partner of choice is to act faster on the Pacific’s number one security concern — climate change.
“The Albanese Government has approved at least five new coal and gas projects since the last Pacific Islands Forum Leaders Meeting, and 36 since being elected, every one of which increases the threats to life, security and sovereignty facing Pacific communities.
“Nowhere in the world are the dangers of fossil fuels or the benefits of renewable energy clearer than in the Pacific, which faces the double blow of climate disasters and expensive fuel imports.
“Australia, as incoming President of Negotiations for COP31, has a responsibility to follow the Pacific’s lead, embrace the vision of a resilient Fossil Fuel Free Pacific, and do everything possible to keep 1.5°C alive. Doing so would establish Australia as a highly effective middle power, a force for good in troubled times, and a true ally and partner to the Pacific.”
—ENDS—
Greenpeace Australia Pacific has delegates from the Pacific and Australia at the PIFLM in Palau available for interview
For the first time, new-energy vehicles (NEVs) made up 67% of new car sales in China in September, according to the latest data from the China Passenger Car Association (CPCA).
The figures show that NEVs, which include battery electric cars and plug-in hybrids, captured a record share of sales, even though fewer were sold than last year.
This is because sales of combustion-engine cars are falling steeply, a trend that the CPCA has attributed to rising petrol prices following the start of the Hormuz crisis.
Indeed, sales of fuel-only cars were down 31% year-on-year in the first nine months of 2026, with plug-in hybrid sales down 26% – whereas battery EV sales were only down 4%.
One analyst tells Carbon Brief that China’s rapidly growing EV fleet has offset demand for 143m barrels of oil since the start of the Hormuz crisis.
Another says that the crisis is “reinforcing China’s electrification of road transport”.
Meanwhile, amid slowing domestic sales, Chinese carmakers’ exports of NEVs more than doubled [in 2026 to date / in September] from a year earlier.
NEV record
A record two out of every three cars sold in September in China were NEVs, according to CPCA data, as shown in the figure below.
(NEVs predominantly include battery electric vehicles – BEVs – and plug-in hybrids – PHEVs. BEVs only run on electricity, whereas PHEVs also have a combustion engine.)
This marks a rapid rise for NEVs from just 6% of new car sales in 2020 up to 58% in 2026 to date – and a record 67% in the month of September.
This year, NEVs’ share of sales has also bounced back from a low of 39% in January, after the full purchase tax exemption that had been in place for more than a decade came to an end in December 2025.
The gain in NEV share in 2026 has come amid a slowdown across the wider domestic passenger-car market, which has hit sales of combustion-engine vehicles particularly hard.
This September, passenger-car retail sales across all categories declined, with overall sales volumes falling 28% year-on-year.
The contraction was led by combustion-engine vehicles, which saw sales fall 43% year-on-year in September and 31% in 2026 to date.
However, sales of PHEVs also fell by 36% year-on-year in September and by 26% in 2026 to date. By comparison, BEVs performed better, although sales still declined 8.5% from a year earlier in September and 4% in 2026 to date.
As a result, NEV sales overall fell by 17% in September and 13% in 2026 to date.
While the market changes in 2026 to date were particularly dramatic, they reflect a broad continuation of trends seen over the past decade.
Indeed, sales of combustion-engine cars in China peaked in 2017 and they have been declining ever since, shown in the figure below.
Impact of Hormuz
Part of the reason for the advance of NEVs in 2026, said Chinese technology news outlet OFweek, was petrol cars “giving up market share” as they were outperformed by electric alternatives.
Cui Dongshu, secretary-general of the CPCA, cited higher petrol prices as an explanation for September’s weak combustion-car sales, in comments to financial news outlet National Business Daily.
Imports of oil into China in January-September have fallen 15% compared to 2025, equivalent to 470m barrels, as ongoing conflict tightened supply and drove up prices.
China’s passenger-car NEV fleet has displaced 143m barrels of oil so far during the strait of Hormuz crisis, Euan Graham, senior energy analyst at thinktank Ember, tells Carbon Brief.
EVs “accounted for 12% of the decrease in China’s oil use post-Hormuz”, according to an estimate provided to thinktank the Brookings Institute by an unnamed analyst.
Erica Downs, a senior research scholar at Columbia University’s Center on Global Energy Policy, tells Carbon Brief that the strait of Hormuz crisis and higher oil prices are “reinforcing China’s electrification of road transport”.
She says the “world’s largest oil supply disruption” vindicates China’s early bet on EVs, which was partly driven by concerns about oil-supply security.
NEV demand down
Nevertheless, NEV sales have fallen year-on-year, albeit at a slower rate than overall car sales. The growth in NEV market share has also been decelerating.
Zhang Yichao, a partner at consulting firm AlixPartners, tells Carbon Brief that NEVs benefit from government trade-in policies and a “strong pipeline” of new models, particularly those involving innovation.
He says these factors help explain why NEVs sales have fallen at a slower rate to their combustion-car counterparts.
Cui told the state-run China National Radio that the fall for NEVs and for cars overall in September 2026, is also due to a high baseline of sales from the same month in 2025, as well as changes to trade-in policies and disruptions from the holiday period.
Other factors, says consulting firm Wood Mackenzie, are the weakened demand due to “demand pull-forward” in 2025 caused by the end of subsidies, as well as “tighter financing conditions”.
Zhang tells Carbon Brief he does not “see much more room ahead” for further growth in NEVs’ market share.
He adds that, in his view, their share in China is unlikely to exceed 80%, as some premium-market segments and specific use cases will continue to require combustion-engine vehicles.
Exports surge
Meanwhile, while domestic NEV retail sales fell 17% in September 2026, exports more than doubled, increasing 164% year-on-year, according to the CPCA.
This extends the decline in domestic sales and very strong growth in exports seen across 2026 to date, as shown in the figure below.
In September, 1,084,000 NEVs were sold domestically in China, while 558,000 NEVs were exported.
Exports are becoming increasingly important to Chinese carmakers, in the face of weaker domestic demand and cut-throat industrial competition.
The CPCA says exports have become “a core priority” for some carmakers.
However, the surge in exports from China has created concern in the EU, which has placed tariffs on imports of EVs from China and recently agreed plans to cut imports of hybrids.
Countries including Mexico and Turkey have also placed tariffs on Chinese EV imports.
At the same time, the Chinese government is putting policies in place that might be expected to disincentivise exports, such as cutting VAT export rebates.
Analysts differ on what impact this policy shift will have, with some saying it will be limited, while others believe it could cause the price of exported cars to rise.
