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Governments have decided against adopting a new structure for the next Intergovernmental Panel on Climate Change (IPCC) assessment cycle, committing instead to the traditional set of three “working group” reports and just one “special” report.

At a three-day meeting in Istanbul last week, delegates debated several different approaches for the work programme of the IPCC’s seventh assessment cycle.

These included a more radical option to replace its huge assessment report with a series of shorter special reports on specific topics.

Nonetheless, delegates decided in favour of the usual assessment report and instead focused on the possibility of its three working group reports being delivered by the end of 2028.

This would allow the reports to inform the UN’s second global stocktake, which will gauge progress towards the Paris Agreement goals.

However, despite most governments agreeing on the accelerated timetable, a few countries “strenuously objected”, blocking a final decision on timelines, which will be revisited at an IPCC meeting in the summer.

One person present at the meeting tells Carbon Brief that “most of the resistance about the 2028 timeline came from Saudi Arabia, China and India”.

IPCC chair Prof Jim Skea described the gathering of more than 375 delegates from 120 governments – which overran into a fourth day – as the “one of the most intense meetings” he had ever experienced. 

The seventh assessment cycle will also include a special report on climate change and cities as well as a methodology report on short-lived climate forcers – decisions that governments had previously already agreed.

The deliberations saw the addition of a second methodology report on carbon dioxide removal technologies, carbon capture utilisation and storage, plus a revision to the IPCC’s 1994 technical guidelines on impacts and adaptation. An overall “synthesis” report for AR7 will follow in 2029.

Reacting to the decisions, one scientist tells Carbon Brief that she is “not thrilled” by the decision to produce “a whole set of working group reports again”, given they will “not say that much new”.

And another says that “waiting until 2028 for the three reports and 2029 for the synthesis is too late to have an impact on decision-making. The world will be significantly different by then”.

In this article, Carbon Brief unpacks the following questions:

What was the purpose of the meeting?

The synthesis report, published in March 2023, marked the final product of the IPCC’s sixth assessment report (AR6) cycle.

Just weeks after its publication, the secretary of the IPCC invited member countries to submit nominations for the IPCC bureau for the AR7 cycle. Over the following months, 100 nominations were submitted for 34 positions – including IPCC chair, vice chairs and co-chairs and working group vice chairs.

Four candidates were nominated for the position of IPCC chair – Dr Debra Roberts from South Africa, Dr Thelma Krug from Brazil, Prof Jean-Pascal Van Ypersele from Belgium and Prof Jim Skea from the UK. These were the first elections in the history of the IPCC with women running for the position of chair.

The new IPCC chair and leadership team were elected at a meeting in Nairobi, Kenya, in July last year, via a secret ballot.

Prof Jim Skea was elected as chair, as the IPCC announced:

“With nearly 40 years of climate science experience and expertise, Jim Skea will lead the IPCC through its seventh assessment cycle. Skea was elected by 90 votes to 69 in a run-off with Thelma Krug.” 

To select the rest of the bureau, the IPCC mandates that at least one IPCC vice chair and one co-chair from each working group should be from a developing country. 

Dr Ladislaus Chang’a from Tanzania, Prof Ramón Pichs-Madruga from Cuba and Prof Diana Ürge-Vorsatz from Hungary were elected to the positions of IPCC vice chair.

IPCC documentation adds that “consideration should also be given to promoting gender balance”. Women make up 40% of the IPCC bureau for AR7 (pdf).

The meeting in Turkey was the first full meeting for the new leadership team. Its purpose was to make a series of decisions for AR7, such as discussing the IPCC budget over 2023-26 and reviewing lessons learned from AR6.

Skea also presented his “vision for the seventh assessment cycle”, in which he highlighted three key themes – policy relevance, inclusivity and interdisciplinarity. 

For example, on interdisciplinarity, Skea said that he is “keen to explore ways of enhancing collaboration” with the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), given the “intertwined nature of the climate, biodiversity and pollution challenges”. 

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What decisions were delegates making?

Among all the decisions that government delegates debated last week, the one that dominated discussions was which option to choose for AR7’s “programme of work”.

This programme sets out the overall approach that the IPCC takes through the assessment cycle, including the number and types of reports that the body produces.

Traditionally, the centrepiece of an IPCC cycle is an “assessment report” that comprises three working group reports and an overall “synthesis” report. The IPCC’s three working groups are:

  • Working Group I (WG1): The physical science basis
  • Working Group II (WG2): Impacts, adaptation and vulnerability
  • Working Group III (WG3): Mitigation of climate change

For AR6, these reports were published in August 2021, February 2022 and April 2022, respectively. They were each around 2,000-3,000 pages in length.

The synthesis report then “integrates” the main findings of the three working group reports. It also takes into account any “special reports” that the IPCC has published during the assessment cycle. 

These are shorter reports on specific topics, written by authors from across the three working groups. In AR6, for example, the IPCC published three special reports – each around 600-900 pages long:

Finally, an assessment cycle typically also includes “methodology” reports, which “provide practical guidelines for the preparation of greenhouse gas inventories” and “technical papers”, which are “prepared on topics for which an objective international scientific/technical perspective is essential”.

Ahead of the meeting in Turkey, an “informal group on the programme of work” had been established to prepare a paper setting out the options for the AR7 programme of work, taking into account the lessons learned from AR6 and the views of IPCC member countries. (Of the IPCC’s 195 members, 66 sent in submissions – roughly split 60-40 between developing and developed countries.)

One of the challenges faced during AR6 was the “very high workload” as a result of “the unprecedented number of reports, the rapidly increasing literature, and a significant increase of review comments on the final government draft [of the reports]”, the paper says.

It notes the need for IPCC reports to be “shorter and more concise, focused on new science and [able to] provide policy relevant information”.

The paper adds that “many member countries recommended ensuring adequate input from the IPCC is available for the second global stocktake to be concluded in 2028, either as a contribution from the assessment reports, topical [special reports], or as a specific dedicated product”.

The global stocktake is a five-yearly temperature check that is a vital part of the Paris Agreement. It is meant to help countries collectively assess where they are, where they want to go and how to get there in terms of climate action and to identify gaps to course correct.

In the text of the first global stocktake, agreed at COP28 in Dubai last year, the UN Framework Convention on Climate Change (UNFCCC), invited the IPCC to “consider how best to align its work with the second and subsequent global stocktakes” and also “to provide relevant and timely information for the next global stocktake”.

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What was agreed for the AR7 ‘programme of work’?

The informal group set out three options for AR7’s programme of work:

  • A “light” option with the usual assessment report and then just one special report and methodology report. This would see a “reduced workload compared to the AR6” and a shorter timeline.
  • A “classical” option with the usual assessment report and up to two special reports and two methodology reports.
  • A “special report gallery” option that replaces the assessment report with a larger collection of special reports (a working assumption of four).

The paper notes that “nearly all” member countries wanted AR7 to include the three working groups reports and synthesis, and the “vast majority” were also in favour of more than one special report and methodology report. (There were 13 countries that wanted to stick with one special report and methodology report.)

Previous assessment cycles suggest that a single working group report takes four years to produce from start to finish, the paper notes, while a special or methodology report can take three or three-and-a-half years. Although working group reports within an assessment cycle are produced in parallel, a complete set – including a synthesis report – ”is not considered possible in less than about four and a half years”, the paper says.

The table below, from the paper, presents the feasibility of when the reports could be published under each of the three options – from “not feasible” (grey) to “risk of delay” (yellow) and “feasible” (green).

Option Report 2027 H1 2027 H2 2028 H1 2028 H2 2029 H1 2029 H2 2030 H1
Light Special 1
Light Methodology 1
Light Assessment
Light Synthesis
Classical Special 1
Classical Methodology 1
Classical Special 2
Classical Methodology 2
Classical Assessment
Classical Synthesis
SR gallery Special 1
SR gallery Methodology 1
SR gallery Methodology 2
SR gallery Special 2
SR gallery Special 3
SR gallery Special 4
SR gallery Synthesis

Feasibility of release of the products listed in the AR7 structure options at indicated periods in time, based on past practice, from “not feasible” (grey) to “risk of delay” (yellow) and “feasible” (green). Source: IPCC (2024)

The paper analysed the three options against a series of criteria that include the time allowed for “engagement of underrepresented communities”. The findings, shown in the “scorecard” below, classify how achievable each criterion is for the three options – yes (green), no (red) or partly (yellow).

Criterion Light Classical SR gallery
Allows strong integration across working groups
Somewhat constrained
Yes
Yes
Input available to second global stocktake
Special report 1 only
Special reports 1 & 2
Special reports 1 & 2
Time window allows significant new literature
Somewhat constrained
Yes
Yes
Time window long enough to allow engagement of underrepresented communities
No
Yes
Yes
Level of undue stress to authors and IPCC Technical Support Unit
Medium
Low
Low
Number of topics to be covered
Somewhat constrained
Large
Somewhat constrained
Comprehensive literature assessment
Somewhat constrained
Yes
Highly constrained
Time distance to the third global stocktake
Long
Medium
Medium

Scorecard for the three programme options assessed against a series of criteria. Shading refers to whether that criterion is achievable – yes (green), no (red) or partly (yellow). Source: IPCC (2024)

Despite being a “fairly straightforward exercise in agenda setting”, the discussions over these options at the IPCC meeting in Turkey “evolved into fraught deliberations that ran overnight on Friday and well into Saturday morning”, the Earth Negotiations Bulletin (ENB) reports. 

It adds that the discussions “came down to the wire as delegates laboured in plenary and huddles to secure consensus on the programme of work”.

The final decision falls between the “light” and “classical” options – comprising a full assessment report with synthesis, as well as one special report and two methodology reports. In addition, AR7 will also include a revision of the IPCC’s technical guidelines on impacts and adaptation, published way back in 1994. (See following sections for more details.)

Skea tells Carbon Brief that the “big issue in the mind of most governments when they went into the meeting” was for “the IPCC to produce something that’s useful for the global stocktake by the end of 2028”. (Even though this process actually starts “in late 2026 through 2027”, he notes.)

There were “kind of two ways of going about” this, explains Skea:

“One was to have a second special report, which was prepared in time for the global stocktake with the working group reports coming after that – and, obviously, not being ready in time. The second option was to dispense with the second special report and produce the three working group reports on quite a fast timetable.”

Therefore, says Skea, “what we’ve ended up with is much more like what was labelled ‘light’, because the key point of ‘light’ is that there were no extra products before the second global stocktake”. (The agreed second methodology report “could take place later” in the assessment cycle, Skea notes.)

However, while there was agreement on the selection of reports, the “accelerated” timeline for working group reports was not agreed as “some countries didn’t necessarily want that”, he adds.

Prof Sonia Seneviratne, a climate scientist from ETH Zurich who is a WG1 vice-chair for AR7, notes that “it was very difficult to reach a final decision because a majority of countries wanted to have all assessment reports completed at the latest in 2028”. She tells Carbon Brief:

“Delivery of the IPCC [assessment] report in 2028 would be critical for the IPCC to fulfil its mandate of being ‘policy relevant’. [Nonetheless,] the final decision keeps the door open for the three assessment reports to be released by 2028 – that is, in time for the global stocktake – provided that the schedule is carefully developed.”

Prof Friederike Otto, senior lecturer in climate science at Imperial College London’s Grantham Institute and IPCC AR6 author, says she is “not thrilled” by the decision to produce “a whole set of working group reports again”, which “will require a huge amount of work for many scientists”. 

The final reports for WG1 and WG3 will especially “not say that much new”, she tells Carbon Brief, costing the “best scientists…a lot of time they cannot use to actually advance the pressing questions”.

Dr Valérie Masson-Delmotte, a senior researcher at the Laboratoire des Science du Climat et de l’environnement in France and IPCC WG1 co-chair during AR6, says that the “positive” of not adding further special reports “is that there will be more time for expert meetings or workshops in particular on topics possibly stimulating the integration across working groups”.

However, she tells Carbon Brief:

“The less positive outcome is a lack of innovation for the AR7, which I see as a transition cycle, and where I think it is critical to prepare a different approach for the AR8 in order to keep IPCC policy relevant and motivating for scientists.”

This timeline (see section below) means that, even with only one special report, the AR7 cycle “might be much more challenging” than AR6, says Prof Joeri Rogelj, professor of climate science and policy at Imperial College London and IPCC AR6 author. He tells Carbon Brief that “this looks like a daunting cycle”, adding:

“Given the sequence of working group reports and the time needed to finalise, review and approve reports, this puts enormous time pressure on WG1 and WG2.”

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How many special reports will AR7 have?

The decision to limit the production of new special reports is in line with the reported preferences of IPCC chair Jim Skea, who previously promised that he would strongly resist pressure to produce more reports, saying they dragged on the IPCC’s core work and resources.

“I’ll say something very strongly – over my dead body will we see lots and lots of special reports,” Skea said shortly after he was elected.

At its 43rd session in April 2016, the IPCC decided to include a special report on climate change and cities in the AR7 cycle. A “cities and climate change science conference” was held in Edmonton, Canada, in March 2018 to “inspire the next frontier of research focused on the science of cities and climate change”.

The comments submitted by member countries suggest that “nearly all countries supported the idea of additional products in the seventh assessment cycle, such as special reports, technical papers or methodology reports”, the IPCC says. It adds that countries suggested a total of 28 different topics, with special reports on tipping points, adaptation, and loss and damage receiving the most support.

However, some countries had expressed concern that the three special reports included in AR6 involved a “substantial amount of work”. Some suggested that only two special reports should be produced in AR7 – including the report on cities – to “avoid overburdening the authors”. 

At last week’s meeting in Istanbul, delegates decided to stick with just the already agreed special report on climate change and cities.

Despite the focus on tipping points before the meeting, the view that emerged during discussions in Turkey was that “if there were to be a second special report…it has to have a sufficiently comprehensive character that it would be useful for the second global stocktake”, Skea explains to Carbon Brief.

Several governments mentioned that a second special report “should provide guidance or evidence on climate action”, says Skea, “which a tipping points report would not” because it would be focusing on “yet another reason for acting urgently, whereas a lot of governments were looking for guidance on how to take urgent action”.

Similarly, while there was “a big push for adaptation from some governments as the subject of the second special report” at the meeting, says Skea, “a lot of the arguments were ‘well, that’s WG2’s job anyway to produce an impacts, adaptation and vulnerability report’ – hence, it would be a duplicative effort”.

Overall, the deliberations in Turkey “went much more towards the accelerated working group reports rather than the second special report option”, Skea says.

However, this logic has not been universally welcomed. Prof Lisa Schipper – a professor of development geography at the University of Bonn and AR6 coordinating lead author – tells Carbon Brief that “the fact that none of the additional special reports was agreed is not good”. 

She notes that special reports can “take a lot of time and energy away” from the IPCC’s Technical Support Units and authors. However, she adds:

“A series of special reports instead of a series of working group reports before 2029 would have allowed for this science to be more regularly assessed, and for countries to have continuous input for decision-making. When the assessment is put off to 2029, this also means that governments’ attention is delayed until then.”

Dr Céline Guivarch is a professor at Ecole des Ponts ParisTech and was a lead author on AR6. She tells Carbon Brief that the decision on special reports “was probably to be expected”. However, she adds: 

“It is a very concerning sign because special reports are important to give faster assessments and to cover topics in more integrated ways than the WG1, WG2 and WG3 ‘siloes’.”

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What other reports will AR7 include?

As well as working group reports and special reports, there are a range of other products that the IPCC can produce.

At the 49th session in May 2019, it was decided that the IPCC Task Force on National Greenhouse Gas Inventories (TFI) should produce a methodology report on short-lived climate forcers. Short-lived climate forcers, such as methane and black carbon, are gases and particulates that cause global warming, but typically only stay in the atmosphere for less than two decades.

Ahead of last week’s meeting in Turkey, around half of IPCC member countries had indicated that they want an “additional product” from the TFI. By far the most sought-after product was on carbon dioxide removal and carbon capture and storage. The meeting saw the addition of a second methodology report on “carbon dioxide removal technologies, carbon capture utilisation and storage”.

In addition to the methodology reports, AR7 will also include a revision of the IPCC’s technical guidelines on impacts and adaptation, published in 1994, as well as adaptation indicators, metrics and guidelines. This will be “developed in conjunction with the WG2 report and published as a separate product”.

Dr Chandni Singh, senior researcher at the School of Environment and Sustainability at the Indian Institute for Human Settlements and IPCC AR6 author, says this is “very welcome”. She tells Carbon Brief:

“There is a bewildering range of frameworks being suggested and applied to track and monitor adaptation progress, and the policy salience is pressing, with discussions for the global goal on adaptation ongoing.”

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What is the timeline for producing these reports?

The delegates also used the meeting to begin discussing the timeline for the upcoming AR7 cycle. In a press release, Skea stressed the importance of “getting policy-relevant, timely and actionable scientific information as soon as possible and providing input to the 2028 second global stocktake”.

However, a full timeline for the AR7 cycle was not agreed at the meeting in Turkey. The dates for the working group reports will be developed by the IPCC bureau and presented at the next meeting in late July or early August for a decision. 

The ENB reports that while most countries “broadly agreed on the need to ensure that a balanced set of scientific inputs, covering both mitigation and adaptation, would be available in time for the second global stocktake in 2028, a few countries strenuously objected”. It adds:

“Until late on the final day of the session, governments’ positions were converging towards having the three working group assessment reports completed by 2028, or at least ‘striving’ to have them completed. Still, the small number of delegates who opposed this timeline held fast.”

One person present at the meeting tells Carbon Brief that “most of the resistance about the 2028 timeline came from Saudi Arabia, China and India”. This “seems politically motivated given the political position of these countries regarding climate mitigation”, they add.

Delegates did agree on a timeline for some of the reports, the ENB notes:

  • The special report on climate change and cities will be published in “early 2027”.
  • The methodology report on short-lived climate forcers will be published “by 2027”.
  • The TFI will hold an expert meeting on carbon dioxide removal technologies, carbon capture utilisation and storage, and provide a methodology report on these “by the end of 2027”.

(Some of the IPCC documents published ahead of the meeting report that author selections for the special report on cities are already underway. More than 1,200 experts were nominated and the IPCC bureau is currently working to pare down the list to around 100 people. The list is expected to be finalised by the end of January, when the chosen experts will be invited to an initial scoping meeting, which will be held in April in Riga, Latvia.)

In addition, the IPCC says that the synthesis report – the final product of the AR7 cycle – will be “released by late 2029”.

If governments do agree that all working group reports are ready in time for the second global stocktake, the timeline for the WG1 report, in particular, will be “very time constrained”, says Rogelj, as it would need to “conclude around late 2027”. He explains:

“Otherwise, there will be insufficient time available for the two other working group reports to go through final review and approval in time for the global stocktake. For the research and climate modelling community, this also means a literature cut-off earlier in 2027 leaving very little time for new coupled climate model runs.”

However, Prof Roberto Sánchez-Rodríguez, a professor in the department of urban and environmental studies at the College of the Northern Border in Mexico and IPCC vice chair for WG2 during AR6, says that even this timetable “fails to recognise the severity of the climate crisis and the pace of change in socioeconomic and geopolitical conditions in the world”. He tells Carbon Brief:

“Waiting until 2028 for the three reports and 2029 for the synthesis is too late to have an impact on decision-making. The world will be significantly different by then.”

Schipper says that getting the reports out before 2030 is important, as 2030 is a “mental tipping point for many”. She adds:

“The IPCC special report on 1.5C said that we needed to be well on our way with action to stay below 1.5 by 2030 – and, clearly, we are not.”

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New Zealand moves to protect business with law curtailing climate litigation

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New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.

The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.

Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.

“Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.

Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.

    Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.

    Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.

    In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.

    Corporate lobbying in the shadows

    Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.

    “That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”

    The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.

    The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.

    Green groups fail to stop bill

    The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.

    But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.

    A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.

    “Pathetic”: New Zealand plans to barely cut emissions between 2030 and 2035

    Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.

    But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.

    The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.

    Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”

    Copycat legislation on the rise

    New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.

    In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.

    The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.

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

    Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.

    “Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.

    The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.

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    Climate Change

    Indonesia’s nickel production cuts are not enough to create a sustainable industry 

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    Bhima Yudhistira Adhinegara is the Executive Director of the Center of Economic and Law Studies (CELIOS), an Indonesia-based economic think tank. Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia desk at CELIOS. 

    Indonesia produces around 60% of the world’s nickel, a metal used to manufacture batteries for electric vehicles (EVs) – more than any other country in the world. But in 2026, the government sharply reduced how much of its nickel can be extracted from the ground.

    Production quotas were reduced by around 40% this year compared to 2025. Weda Bay, the largest nickel mine on Earth, had its allowance cut by more than 70% and exhausted its full-year quota by the end of May, halting mining entirely; it cannot resume large-scale extraction until next year unless regulators grant an extension.

    The policy has sparked a vivid debate in Indonesian policy circles: how can the country shift its strategy from a decade of mining vast quantities of cheap nickel to producing a high-value and low-carbon material that the rest of the world wants for EV batteries.

    The cuts aren’t a silver bullet to clean up Indonesia’s nickel industry, whose smelters are powered by coal – the most polluting fossil fuels. But alongside stricter enforcement of environmental rules, it is one side of efforts to produce more sustainable nickel for a premium.

    Restricting Indonesia’s nickel output

    Production quotas were introduced to stop the collapse of nickel prices because of oversupply in the market. Prices had fallen more than 40% in 2023 alone and kept sliding as Indonesian supply kept growing, hitting a four-year low of around $13,900 a ton in late 2025.

    Critics called the recent tightening of production quotas proof that Indonesia’s nickel strategy has failed, arguing that the industry shouldn’t need to throttle its own output to survive. But when assessed against what the policy was supposed to do – push up nickel prices – it has worked. Prices jumped to $20,000 a ton in May, the highest since 2024.

      Chinese industry groups representing companies that have invested billions to mine and refine the country’s nickel were furious, warning Indonesia’s president Prabowo Subianto that the cuts put $50 billion worth of investment at risk. But much of that Chinese capital is sunk into smelters and processing plants built specifically to run on Indonesian ore, and cannot simply be moved elsewhere. That gives Jakarta more room to hold its ground than the warning suggests.

      Stronger environmental enforcement

      Since the start of the year, Indonesia’s forestry task force has seized more than four million hectares of land from mines and plantations operating illegally in protected forests, collecting over two trillion rupiah ($113 million) in fines.

      This included 148 hectares seized from Weda Bay for lacking a forestry permit. The share of nickel produced from illegal small-scale mining also fell from about a quarter in 2022 to roughly 10% by 2024.

      The crackdown responds to serious environmental damages in the nickel industry. On Obi Island, a waste pond collapsed after heavy rain in June 2025, flooding three villages and killing a resident. Internal company tests found chromium-6 – a carcinogen – in the water, in quantities far above the legal limit. The footprint of another mine near Raja Ampat, which is home to some of the world’s richest coral reefs, grew 60-fold in just eight years.

      A coastal village is wedged between the sea and a large nickel mine in Indonesia
      The fishing villages of Tapunggaya in Sulawesi, Indonesia, are squeezed between the sea and an expanding nickel mine (Photo by Garry Lotulung/NurPhoto)

      The market is responding to early cleanup efforts. Low-carbon nickel now sells for a real premium, roughly $18,800 to $19,300 a ton compared with $17,900 to $18,300 otherwise, as carmakers seek to source cleaner materials to comply with the European Union’s new emissions rules for imports.

      In turn, this is incentivising the industry to do more to green its operations. Vale Indonesia’s smelter in South Sulawesi now runs almost entirely on hydropower, for example.

      None of this addresses coal use, however. Major Indonesian nickel producers still emitted an estimated 15 million metric tons of greenhouse gases in 2023. Indonesia may be cracking down on illegal mining and rewarding cleaner producers but it is still running its mines on the dirtiest fuel available.

      Unequal benefits

      For Indonesia to truly benefit from producing cleaner and high-value nickel, it needs to reap the economic benefits too. Although the industry has boosted the country’s economic growth, the reality on the ground tells a different story.

      Konawe in Southeast Sulawesi is home to a major smelting complex. Growth in the district jumped from 6% to 22% between 2015 and 2023, driven almost entirely by the nickel industry, according to a study by the Lowy Institute study. At the same time, poverty levels increased slightly and unemployment remained unchanged.

        In Halmahera, another epicentre of the nickel industry, spending by the poorest fifth grew just 5% between 2019 and 2022, compared with 28% for the wealthiest fifth, according to a separate study.

        Part of the reason for this inequality is the system for transferring mining royalties to district authorities where the mines are located. In theory, they are entitled to the largest share. But in practice, payments are delayed, companies routinely dispute what they owe and royalties are pooled and distributed across a larger area.

        The Natural Resource Governance Institute has found that decentralisation handed local governments power to approve new mines faster than they could build their capacity to manage them. Higher output raises national income on paper, but local governments remain constrained by fiscal rules and infrastructure costs that scale with mining.

        None of this makes the 2026 quota cuts a mistake. Indonesia has every right to defend its pricing power over a resource it controls. But limiting extraction isn’t going to fix underlying issues around environmental enforcement and revenue-sharing. That requires rules that are consistently enforced, royalties that reach communities living by the mines, and a plan to wean smelters off coal.

        The post Indonesia’s nickel production cuts are not enough to create a sustainable industry  appeared first on Climate Home News.

        Indonesia’s nickel production cuts are not enough to create a sustainable industry 

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        Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans

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        SYDNEY, Monday 24 August 2026 – New analysis of Woodside modelling released by Greenpeace Australia Pacific and Environs Kimberley has revealed the oil and gas corporation’s plans to drill at Scott Reef could cause an oil spill up to 30 times bigger than the 2009 Montara disaster, impacting the Kimberley coastline and reaching as far as Indonesia.

        The new analysis details the “catastrophic” oil spill risk put to environmental regulators for approval by Woodside in its Browse to North West Shelf Project (Browse) plans, the worst-case scenario being a blowout directly below Scott Reef, polluting whale migratory pathways and covering isolated turtle nesting ground with oil condensate.

        An FOI application (F348) revealed the federal environment department (DCCEEW) asked offshore oil and gas regulator NOPSEMA to look into the oil spill risk in 2025. NOPSEMA’s response to the application refused access to its report, and one document shows DCCEEW sought further advice this year.

        Greenpeace and Environs Kimberley are calling on the Federal Government to publicly release the NOPSEMA report given the risk of an uncontrolled release of oil condensate from directly below Scott Reef.

        Hannah Schuch, Senior Campaigner at Greenpeace Australia Pacific, said: “Woodside is aware that drilling at Scott Reef risks a massive oil spill that would have severe, far-reaching consequences. It appears environmental regulators are aware too.

        “The state and federal governments need to take this risk from Woodside’s drilling plans seriously, as they could end up allowing the worst oil spill in Australian history.

        “The pygmy blue whales that migrate up and down the WA coast with their newborns each year could be swimming and feeding in toxic, oil-slicked water. Woodside’s proposal to drill at Scott Reef is an environmental disaster waiting to happen, and the WA and federal governments have one surefire way to prevent catastrophe — reject Browse.”

        Martin Prichard, Executive Director at Environs Kimberley, said: “A catastrophic oil spill by Woodside would be disastrous not just for marine life in the area but also for the Kimberley’s $500 million tourism industry.

        “The state and federal governments will see five marine parks on the Kimberley coast included in the risk area of a catastrophic Woodside oil spill.

        “The Montara oil spill was disastrous for West Timor with the toxic oil destroying seaweed farmers’ livelihoods. The Kimberley dodged a bullet with Montara, we were lucky the spill didn’t head our way. Myself and a crew flew over the Montara oil spill and followed it as far as we could. It was like a scene from a disaster movie.”

        After the WA Environmental Protection Authority deemed Browse “unacceptable” due, in part, to oil spill risk, Woodside submitted a mitigation plan based on technology that has never been used “in anger”, a weakness stated in an independent expert review of the plan.

        Professor Richard Steiner, independent oil spill expert, said: “A large offshore spill is impossible to effectively contain or recover. Historically, only 2-6% of total spill volume is recovered and the ecological injury from the release of toxic hydrocarbons in the sea can be severe, extensive, and long-term.

        “Here in Alaska, government research concludes that several marine populations injured by the 1989 Exxon Valdez oil spill, including whales, fish, and seabirds, are still not recovering today, 37 years later. We should expect similar long-term ecological impacts in Western Australia if there were to be a major oil spill. The only sure way to avoid the risk of a catastrophic marine oil spill is to not develop oil and gas projects in marine environments.”

        -ENDS-

        Media contact

        Emma Sangalli on emma.sangalli@greenpeace.org or 0431 513 465

        Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans

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