The UK would be able to increase its emissions while still meeting its next legally binding climate goal if the government uses a “surplus” to weaken the target, official advisers warn.
The government has asked the Climate Change Committee (CCC) if it should carry over “surplus” emissions, after the UK overachieved the third “carbon budget” for 2018-2022.
This surplus is equivalent to an extra year’s worth of emissions, so carrying it forward would increase the size of the fourth carbon budget for 2023-2027 by a fifth.
Doing so would make it far easier for the next government to meet that budget, allowing emissions to rise by around 15% from current levels – instead of falling towards net-zero.
In a letter, published today, the Climate Change Committee (CCC) says its “unequivocal” advice is that doing this would place the UK’s future climate goals at “very serious risk” and would make the 2050 net-zero target “more expensive and harder to achieve”.
The letter says that the surplus is largely the result of a sluggish economy and the impact of Covid-19. The committee emphasises that the UK’s emissions cuts need to accelerate to stay on course for long-term goals, rather than slow down.
‘Surplus’ emissions cuts
Under the Climate Change Act, the UK must hit legally binding interim emissions targets, known as carbon budgets, that get gradually lower on a pathway to net-zero emissions by 2050.
Earlier this month, the government published final greenhouse gas emissions figures showing that the UK overachieved in its third carbon budget. Total net emissions were 2,153m tonnes of carbon dioxide equivalent (MtCO2e) between 2018 and 2022, the figures show, against a target of 2,544MtCO2e.
This means the UK came in 391MtCO2e – or 15% – below the budget for this five-year period. This “overachievement”, largely due to the impact of the Covid-19 pandemic and other external factors (see below), is equivalent to around one year of UK emissions.
Earlier this month, UK climate minister Graham Stuart asked the CCC for its view on “carrying forward” the emissions “surplus” to the next carbon budget.
Under section 17 of the Climate Change Act, the government is legally entitled to do this if it wishes, but must first seek and take into account the CCC’s advice.
Carrying forward some or all of the surplus effectively weakens the UK’s next carbon budget, by an equivalent amount. Nevertheless, the flexibility was included in the Climate Change Act in order to encourage – and reward – early action to cut emissions.
Five years ago, the CCC issued a similar warning that the UK should not carry forward the surplus from the second carbon budget to the third period, because that overachievement was also largely due to external factors rather than genuine early action.
However, the government ignored the CCC’s advice – the first time it had done so – and carried forward 88MtCO2e into the third carbon budget.
Today, the CCC has once again written to the government warning it not to weaken the fourth carbon budget by making use of surplus emissions.
Indeed, as the chart below shows, making full use of the third budget surplus would allow the UK to legally increase its emissions in the current fourth carbon budget period 2024-2027, rather than cutting them in line with its longer-term goals.
With the third carbon budget surplus of 391MtCO2e being equivalent to a whole extra year of emissions in the UK, the country could emit around 20% more over the five-year budget than the amount officially legislated.
Adding this amount to the fourth carbon budget would enable the UK to emit 200MtCO2e more between 2023-27 than it did over the course of its third carbon budget, following decades of relatively consistent cuts.
This would amount to a 9% increase in emissions between budgets and an increase of as much as 15% from 2022 levels, across the fourth budget period.
It would also push the UK far off course from the government’s own carbon budget delivery plan for meeting near- and long-term targets, which it set out last year.
If the government decides to carry over the surplus and emissions are allowed to rise to their maximum level under a looser fourth carbon budget, getting back on track for the fifth carbon budget would require a “huge and impractical” total emissions reduction of 1,036MtCO2e over the following five years, according to the CCC.
This is twice as fast as anticipated in the government’s plan – and 40% quicker than the most ambitious scenario devised by the CCC.
‘Very serious risk’
In light of these potential outcomes, interim CCC chair Prof Piers Forster writes in his response to Stuart’s request that the surplus should not be used:
“The committee’s unequivocal advice is that surplus emissions from the third carbon budget should not be carried forward.”
The committee warns against “setting conditions that allow for a legally compliant slowdown in progress” when the focus “should be on accelerating and broadening emissions reductions”.
It concludes that both the UK’s domestic goal of the sixth carbon budget for 2033-37 and its 2030 international climate target under the Paris Agreement would be placed at “very serious risk” if the carryover is allowed.
The fourth carbon budget was set when the UK’s 2050 emissions goal was an 80% reduction rather than 100%. This means that the government should be overachieving, rather than underachieving, on the budget’s target emissions reductions in order to stay on a “sensible” track for its future goals, according to the CCC.
The CCC’s response reiterates its previous recommendations to Stuart’s predecessors about carrying forward surplus from the first and second carbon budgets.
Moreover, the committee points out that “most” of the surplus emissions cuts in recent years have not been the result of the government’s climate policies.
According to the committee, roughly half of them resulted from a “tighter than expected” EU ETS cap. This meant “less was required” of government policy in areas outside of the ETS, such as transport and heating buildings.
Most of the remaining surplus is accounted for by “lower-than-expected GDP” and less travel due to the Covid-19 pandemic, the CCC adds.
The CCC emphasises the need for continued incentives and pressure to make emissions cuts across all sectors, concluding:
“The Climate Change Act and the carbon budgets provide a clear, longrun signal to investors and businesses on the UK’s decarbonisation trajectory. Carrying forward the third carbon budget surplus would weaken this message, causing uncertainty, and could ultimately result in net-zero being more expensive and harder to achieve.”
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UK emissions could rise by 15% if government uses ‘surplus’ to weaken climate goal, CCC warns
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Rudecindo Espíndola’s family has been growing corn, figs and other crops for generations in the Soncor Valley in northern Chile, an oasis of green orchards in one of the driest places on Earth – the Atacama desert.
Perched nearly 2,500 metres above sea level, his village, Toconao, means “lost corner” in the Kunza language of the Indigenous people who have lived and farmed the land in this remote spot for millennia.
“Our deep connection to this place is based on what we have inherited from our ancestors: our culture, our language,” said Espíndola, a member of a local research team that found evidence that people have inhabited the desert for more than 12,000 years.
This distant outpost is at the heart of the global rush for lithium, a silvery-white metal used to make batteries for electric vehicles (EV) and renewable energy storage that are vital to the world’s clean energy transition. The Atacama salt flat is home to about 25% of the world’s known lithium reserves, turning Chile into the world’s second-largest lithium producer after Australia.
For decades, the Atacama’s Indigenous Lickanantay people have protested against the expansion of the lithium industry, warning that the large evaporation ponds used to extract lithium from the brine beneath the salt flats are depleting scarce and sacred water supplies and destroying fragile desert ecosystems.
Espíndola joined the protests, fearing that competition for water could pose an existential threat to his community.
But last year, he was among dozens of Indigenous representatives who sat across the table from executives representing two Chilean mining giants to hammer out a governance model that gives Indigenous communities living close to lithium sites a bigger say over operations, and a greater share of the economic benefits.
A pioneering deal
The agreement is part of a landmark deal between state-owned copper miner Codelco and lithium producer the Sociedad Química y Minera de Chile (SQM) to extract lithium from the salt flats until 2060 through a joint venture called NovaAndino Litio.
The governance model that promises people living in Toconao and other villages around the salt flats millions of dollars in benefits and greater environmental oversight is the first of its kind in mineral-rich Chile, and has been hailed by industry experts as the start of a potential model for more responsible mining for energy transition metals.
NovaAndino told Climate Home News the negotiations with local communities represented an “unprecedented process that has allowed us to incorporate the territory’s vision early in the project’s design” and creates “a system of permanent engagement” with local communities.
The company added it will contribute to sustainable development in the area and help “the safeguarding of [the Lickanantay people’s] culture and environmental values”.
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For mining companies, such agreements could help reduce social conflicts and protests, which have delayed and stalled extraction in other parts of South America’s lithium-rich region, known as the lithium triangle.
“Argentina and Bolivia could learn a lot from what we’re doing [here],” said Rodrigo Guerrero, a researcher at the Santiago-based Espacio Público think-tank, adding that adopting participatory frameworks early on could prevent them from “going through the entire cycle of disputes” that Chile has experienced.
Justice at last?
As part of the governance deal, NovaAndino has pledged to adopt technologies that will reduce water use and mitigate the environmental impacts of lithium extraction.
It has also committed to hold more than 100 annual meetings with community representatives to build a “good faith” relationship, and an Indigenous Advisory Council will meet twice a year with the company’s sustainability committee to discuss its environmental strategy, company sources said. The meetings are due to begin next month.
To oversee the agreement’s implementation, an assembly – composed of representatives from all 25 signatory communities – will track the project’s progress. In addition, NovaAndino will hold one-on-one meetings with each community to address issues such as the hiring of local people and the protection of Indigenous employees.
Espíndola said the deal, while far from perfect, was an important step forward.
“Previously, Indigenous participation was ambiguous. Now we talk about participation at [every] hierarchical level of this process, a very strong empowerment for Indigenous communities,” said Espíndola, adding that it did not give local communities everything they had asked for. For instance, they will not hold veto power over NovaAndino’s decisions or have a formal shareholder role.
But after years of conflict with mining companies, a form of “participatory justice is being done”, he said.
Not everyone is convinced that the accord, pushed by Chile’s former leftist government, marks progress, however.
“Not in our name”
The negotiations have caused deep divisions among the Lickanantay, some of whom say greater engagement with mining companies will not stop irreparable damage to the salt flats on which their traditional way of life depends. Others fear the promise of more money will further erode community bonds.
In January 2024, Indigenous communities from five villages closest to the mining operations, including Toconao, blocked the main access roads to the lithium extraction sites. They said the Council of Atacameño Peoples, which represents 18 Lickanantay communities and was leading discussions with the company, no longer spoke for them.
Official transcripts of consultations on the extension of the lithium contracts and how to share the promised benefits reveal deep divisions. Tensions peaked when communities around the mining operations clashed over how to distribute the multimillion-dollar windfall, with villages closest to the mining sites demanding the largest share.
Eventually, separate deals establishing a new governance framework over mining activities were reached between Codelco and SQM with 25 local communities, including a specific agreement for the five villages closest to the extraction sites.
The division caused by the separate deal for the five villages “will cause historic damage” to the unity of the Atacama desert’s Indigenous peoples, said Hugo Flores, president of the Council of Atacameño Associations, a separate group representing farmers, herders and local workers who oppose the mining expansion.
Sonia Ramos, 83, a renowned Lickanantay healer and well-known anti-mining activist, lamented the fracturing of social bonds over money, and for the sake of meeting government objectives.
“There is fragmentation among the communities themselves. Everything has transformed into disequilibrium,” said the 83-year-old.
“[NovaAndino] supposedly has economic significance for the country, but for us, it is the opposite,” she said.
The company told Climate Home News it has “acted consistently” to promote “transparent, voluntary, and good-faith dialogue with the communities in the territory, recognising their diversity and autonomy, and always respecting their timelines and forms of participation”.
A one-off deal or a model for others?
The NovaAndino joint venture is a pillar of Chile’s strategy to double lithium production by 2031 and consolidate the copper-producing nation’s role in the clean energy transition as demand for battery minerals accelerates.
Chile’s new far-right president, José Antonio Kast, who was sworn in last week, promised to respect the lithium contracts signed by his predecessor’s administration – including the governance model.
Still, some experts say the splits over the new model highlight the need for legislation that mandates direct engagement and minimum community benefits for all large mining projects.
“In the past, this has lent itself to clientelism, communities who negotiate best or arrive first get the better deal,” said Pedro Zapata, a programme officer in Chile for the Natural Resource Governance Institute.
“This can be to the detriment of other communities with less strength. We cannot have first- and second-class citizens subject to the same industry,” he added.
The government is already negotiating two more public-private partnerships to extract lithium with mining giant Rio Tinto, which it said would include a framework to engage with Indigenous communities and share some of the revenues. The details will need to be negotiated between local people, the government and the company.
Sharing the benefits of mining
Under the deal in the Atacama, NovaAndino will run SQM’s current lithium concessions until they expire in 2030 before seeking new permits to expand mining in the region under a vast project known as “Salar Futuro” – a process which will require further mandatory consultations with communities.
Besides the participatory mechanism, the new agreement promises more money than ever before for salt flat communities.
Depending on the global price of lithium and their proximity to the mining operations, Indigenous communities could collectively receive roughly $30 million annually in funding – about double what SQM currently disburses under existing contracts.
When taking into account the company’s payments to local and regional authorities, contributions could reach $150 million annually, according to the government.
To access these resources, each community will need to submit a pipeline of projects they would like funding for under a complex arrangement that includes five separate financial streams:
- A general investment fund will distribute funding based on each village’s size and proximity to the mining sites
- A development fund will support projects specifically in the five communities closest to the extraction sites
- Contributions to farmers and livestock associations
- Contributions to local governments
- A groundbreaking “intergenerational fund” held in trust for the Lickanantay until 2060
For many isolated communities in the Atacama desert, financial contributions from mining firms have funded essential public services, such as healthcare and facilities like football pitches and swimming pools.
In the past, communities have used some of the benefits they received from mining to build their own environmental monitoring units, hiring teams of hydrogeologists and lawyers to scrutinise miners’ activities.
Espíndola said the new model could pave the way for more ambitious development projects such as water treatment plants and community solar energy projects.
Competition for water
The depletion of water resources is one of local people’s biggest environmental concerns.
To extract lithium from the salt flats, miners pump lithium-rich brine accumulated over millions of years in underground reservoirs into gigantic pools, where the water is left to evaporate under the sun and leaves behind lithium carbonate.
One study has shown that the practice is causing the salt flat to sink by up to two centimetres a year. SQM recently said its current operations consume approximately 11,500 to 12,500 litres of industrial freshwater for every metric ton of lithium produced.
NovaAndino has committed to significantly reduce the company’s water use by returning at least 30% of the water it extracts from the brine and eliminating the use of all freshwater in its operations within five years of obtaining an environmental permit.
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Cristina Dorador, a microbiologist at the University of Antofagasta, told Climate Home News that reinjecting the water underground is untested at a large scale and could impact the chemical composition of the salt flats.
Continuing to extract lithium from the flats until 2060 could be the “final blow” for this fragile ecosystem, she said.
Asked to comment on such concerns, NovaAndino said any new technology will be “subject to the highest regulatory standards”, and pledged to ensure transparency through “an updated monitoring system with the participation of Indigenous communities”.
High price for hard-won gains
For the five communities living on the doorstep of the lithium pools, one of the biggest gains is being granted physical access to the mining sites to monitor the lithium extraction and its impact on the salt flats.
That is a first and will strengthen communities’ ability to call out environmental harms, said Sergio Cubillos, the community president of Peine, the village closest to the evaporation ponds. It could also give them the means to seek remediation through the courts if necessary, Espíndola said.
Gaining such rights represents long-overdue progress, Cubillos said, but it has come at a high price for the Lickanantay people.
“Communities receiving money today is what has ultimately led to this division, because we haven’t been able to figure out what we want, how we want it, and how we envision our future as a people,” he said.
Main image: A truck loads concentrated brine at SQM’s lithium mine at the Atacama salt flat in Chile (Photo: REUTERS/Ivan Alvarado)
The post Landmark deal to share Chile’s lithium windfall fractures Indigenous communities appeared first on Climate Home News.
Landmark deal to share Chile’s lithium windfall fractures Indigenous communities
Diplomats will hold a series of informal meetings this year in a bid to revive stalled talks over a global treaty to curb plastic pollution, before aiming to reconvene for the next round of official negotiations at the end of 2026 or early 2027.
Hoping to find a long-awaited breakthrough in the deeply divided UN process, the chair of the talks, Chilean ambassador Julio Cordano, released a roadmap on Monday to inject momentum into the discussions after negotiations collapsed at a chaotic session in Geneva last August.
Cordano wrote in a letter that countries would meet in Nairobi from June 30 to July 3 for informal discussions to review all the components of the negotiations, including thorny issues such as efforts to limit soaring plastic production.
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The gathering should result in the drafting of a new document laying the foundations of a future treaty text with options on elements with divergent views, but “no surprises” such as new ideas or compromise proposals. This plan aims to address the fact that countries left Geneva without a draft text to work on – something Cordano called a “significant limitation” in his letter.
“Predictable pathway”
The meeting in the Kenyan capital will follow a series of virtual consultations every four to six weeks, where heads of country delegations will exchange views on specific topics. A second in-person meeting aimed at finding solutions might take place in early October, depending on the availability of funding.
Cordano said the roadmap should offer “a predictable pathway” in the lead-up to the next formal negotiating session, which is expected to take place over 10 days at the end of 2026 or early 2027. A host country has yet to be selected, but Climate Home News understands that Brazil, Azerbaijan or Kenya – the home of the UN Environment Programme – have been put forward as options.
Countries have twice failed to agree on a global plastics treaty at what were meant to be final rounds of negotiations in December 2024 and August 2025.
Divisions on plastic production
One of the most divisive elements of the discussions remains what the pact should do about plastic production, which, according to the UN, is set to triple by 2060 without intervention.
A majority, which includes most European, Latin American, African and Pacific island nations, wants to limit the manufacturing of plastic to “sustainable levels”. But large fossil fuel and petrochemical producers, led by Saudi Arabia, the United States, Russia and India, say the treaty should only focus on managing plastic waste.
As nearly all plastic is made from planet-heating oil, gas and coal, the sector’s trajectory will have a significant impact on global efforts to reduce greenhouse gas emissions.
Countries still far apart
After an eight-month hiatus, informal discussions restarted in early March at an informal meeting of about 20 countries hosted by Japan.
A participant told Climate Home News that, while the gathering had been helpful to test ideas, progress remained “challenging”, with national stances largely unchanged.
The source added that countries would need to achieve a significant shift in positions in the coming months to make reconvening formal negotiations worthwhile.
Deep divisions persist as plastics treaty talks restart at informal meeting
Jacob Kean-Hammerson, global plastics policy lead at Greenpeace USA, said the new roadmap offers an opportunity for countries to “defend and protect the most critical provisions on the table”.
He said that the document expected after the Nairobi meeting “must include and revisit proposals backed by a large number of countries, especially on plastic production, that have previously been disregarded”.
“These measures are essential to addressing the crisis at its source and must be reinstated as a key part of the negotiations,” he added.
The post Roadmap launched to restart deadlocked UN plastics treaty talks appeared first on Climate Home News.
Roadmap launched to restart deadlocked UN plastics treaty talks
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