More energy-efficient air-conditioning units could, together, save Indian households ₹69bn ($724m) a year, according to new analysis by Carbon Brief.
Climate change-induced extreme heat is driving up the use of air conditioning across the country, as people try to cope with record-breaking temperatures.
This demand, however, is straining the country’s power grid and raising emissions.
On 21 May 2026, India’s power demand reached a record 270 gigawatts (GW), fuelled by a heatwave sweeping across the country and a surge in air-conditioning demand.
Carbon Brief’s analysis shows that, if the roughly 15m households expected to buy a new air conditioning (AC) unit this year bought a “five-star” rated one instead of a “two-star”, it would cut carbon dioxide (CO2) emissions by nearly 5m tonne (Mt).
The installation of AC units in India is currently uneven and ongoing challenges remain, predominantly around the cost of the technology.
Below, Carbon Brief looks at what more energy-efficient models would mean for India’s emissions and household electricity savings, as well as opportunities and barriers to cooling access.
Record heat
Historically, India has had one of the lowest levels of access to cooling in the world. As the nation continues to see an increasing number of heatwave days, this is shifting.
For example, India saw record-breaking heat in 2024 and nearly 14m air conditioners sold – up from 10m in 2023.
Between 2021 and 2023, AC sales volumes increased by more than 25% year-on-year in India.
While solar power is playing an increasing role in meeting the daytime electricity demand from these units, coal power plays a significant role in powering air conditioners on warm nights.
By 2037, India’s space-cooling demand was expected to grow nearly 11-fold in a business-as-usual scenario compared to 2017, according to the government’s 2019 India Cooling Action Plan (ICAP).
According to a World Bank study, this would mean a new air-conditioning unit is bought every 15 seconds in India. There would also be a 435% increase in annual greenhouse gas emissions related to air conditioning in the country over the next two decades.
The chart below shows the ICAP’s estimated rise in air conditioner units in India from 2021 to 2037. The blue line represents a high-growth scenario, while the green line corresponds to a low-growth scenario.
Growing demand
Despite the upswing in installations over recent years, it remains rare for households to have access to air conditioning in India.
According to India’s national sample survey in 2020-21, only 4.9% of Indian households owned air conditioning, with ownership concentrated among the urban rich. As of 2024, this had increased to around 8%.
(Ownership of evaporative air coolers is significantly higher than it is for air conditioning, particularly in the arid north and central Indian states, where humidity is low.)
Dr Nikit Abhyankar, an associate adjunct professor at the Goldman School of Public Policy at the University of California Berkeley, tells Carbon Brief that India is set to add between 100-150m new air conditioners in the next 10 years, which could go up to 200m “if you factor in the crazy heatwaves”.
According to his research, the two factors that drive “dramatic” sales of ACs are income and extreme temperatures.
He tells Carbon Brief:
“The moment you cross a specific income threshold, the first appliance you buy is an air conditioner, no matter whether it’s hot or not. And the moment there are extreme temperatures, the next summer, you see a huge wave of new ACs being purchased.”
With that in mind, he says India offers a “classic lock-in opportunity”, since 90% of the air conditioners that will exist in 2040 have yet to be purchased, particularly given the tendency among Indian users to repair and reuse units. Abhyankar continues:
“That’s why making sure that first AC purchase is the most efficient one is very important in India, because that AC is not going out of the market in seven years.”
Energy-efficient units
With the number of air-conditioning units in India on the rise, ensuring they are as energy-efficient as possible could save households money, while cutting emissions and electricity demand.
India’s Bureau of Energy Efficiency (BEE) mandates star ratings for air conditioners to indicate their efficiency. It uses a metric called the Indian seasonal energy efficiency ratio (ISEER), which is based on an India-specific temperature distribution.
Ratings range from one to five stars, with the latter being the most energy-efficient.
According to the International Energy Agency (IEA), three-star units “dominate” India’s air-conditioning market, “possibly due to [up-front] cost considerations”, while four- and five-star units account for a minority of sales.
The chart below shows AC production volumes in India between 2019 and 2023 by energy-efficiency star rating, according to the IEA.
Carbon Brief analysis finds that buying a five-star air conditioner could cut the emissions associated with generating electricity to run the unit by around 300 kilograms (kg) of CO2 per year, when compared to a two-star unit.
As such, if all 15m air-conditioning units expected to be sold in 2026 were five-star, it could save 5MtCO2 annually.
This is roughly equivalent to the emissions from an average-sized coal-fired power plant, the analysis shows.
In a year, the lower electricity demand from more efficient units could mean ₹69bn ($724m) in cost savings for consumers, as shown in the chart below. Each affected household could save ₹4,600 ($48) annually on their bills.
There are also significant savings from five-star units compared with three-stars, amounting to around 150kgCO2 and ₹2,300 ($24) per household per year.
Carbon Brief’s illustrative analysis is supported by a new working paper from the India Energy and Climate Center (IECC) at UC Berkeley, which looks at the longer-term impact of AC demand on electricity demand and emissions, as well as grid investment costs and consumer savings.
Released in May 2026, it says that room air conditioners already account for nearly a quarter of India’s peak electricity demand (60-70GW).
The authors estimate that AC-driven peak power demand could reach 120GW by 2030 and 180GW by 2035, pushing India’s power grid beyond its capacity. They warn:
“Even with all under-construction generation and storage projects online, power shortages are expected as early as 2028.”
Sustained energy-efficiency improvements, however, could reduce this cooling-driven peak power demand by 10GW by 2030 and 47GW by 2035.
They estimate that these improvements could help avoid nearly $80bn in power infrastructure investments and deliver $9-25bn in consumer savings between 2028 and 2035, while reducing emissions by 12MtCO2 per year by 2030.
Rolling out five-star units
While there are emissions and cost benefits to five-star air-conditioning units compared to the alternatives, the higher upfront costs can still present a barrier.
These more energy-efficient units can pay for their higher purchase price over a three-year period, but on average cost ₹5,000 to ₹8,000 ($52-84) more upfront than a three-star unit.
Researchers at the Indian climate thinktank Sustainable Futures Collaborative (SFC) called on Indian state and national governments to create a “highly-targeted active cooling” programme last year.
They recommended deploying a subsidy or a large-scale purchase programme that allows families to buy energy-efficient air conditioners. This, they said, must be targeted at portions of Indian cities with the highest heat risk, determined by the vulnerability assessments of their heat action plans.
Climate adaptation researcher at King’s College London and SFC author Aditya Valiathan Pillai tells Carbon Brief:
“Commit money to air conditioning for the poorest-of-the-poor: subsidise ultra-efficient ACs and electricity, but give them cool air at the cheapest possible, most efficient rate.
“Because these are the people running the economy, which is not going to function in a heatwave if these people are dying or unable to work.”
Methodology
Carbon Brief’s analysis is based on official energy consumption, power pricing and emissions data from different ministries and government institutions.
It uses BEE’s “search and compare” tool to list all five-star and three-star “variable speed” or “inverter” air conditioners, given their enhanced efficiency and ability to regulate humidity.
This was then filtered to air conditioners with a capacity of 1.5t, which studies say are most preferred by Indian households.
Using the same tool, Carbon Brief then listed all “fixed speed” two-star ACs of a similar capacity (1.45t to 1.55t), given that these account for the majority of two-star ACs available on the market and favoured by renters.
Based on expert estimates, the analysis lists the energy consumption of each of these key categories in kilowatt-hours (kWh) and added 15% to account for losses in power transmission and distribution.
The carbon intensity of Indian electricity is specified by the CO2 baseline database published by India’s Central Electricity Authority in November 2025.
The number of hours per year a household’s air conditioning runs is estimated at 1,600 hours by the BEE.
Carbon Brief uses a marginal electricity tariff of ₹10 per kWh to calculate annual electricity consumption costs.
This is because average electricity tariffs vary significantly from state to state, but especially by energy consumption “slabs”, with AC use pushing bills into higher-tariff rates.
For instance, in Maharashtra, electricity tariffs for domestic households range from ₹1.52 per unit for below-poverty-line households to ₹16.64 per unit for homes using more than 500 units of electricity.
Savings from higher energy efficiency, therefore, reduce electricity consumption in the highest electricity tariff block, where rates are the most expensive.
Cooling hours
Air-conditioner usage varies across India’s climatic zones. The ISEER metric that underpins star ratings estimates that, on average, a household air conditioner runs for 1, 600 hours a year.
This estimate is based on 2014 weather data for 54 cities across India, to see how many hours in a year temperatures exceed 24C.
Refrigerant emissions
The analysis only accounts for emissions from electricity generation and does not factor in “fugitive” emissions from refrigerant leaks.
These are significant, given that refrigerants are greenhouse gases that can have hundreds of times more warming potential than CO2.
According to a study published by climate thinktank iForest last year, Indian households with air conditioning are refilling their refrigerants more frequently than the global average.
It estimates that greenhouse gas emissions from refrigerant release from India’s air conditioners were 52Mt of CO2 equivalent (CO2e) in 2024, likely to increase to 84MtCO2e by 2035.
Cooling access and population data
Government estimates vary on how many Indian households do not own a single air conditioner, with little publicly available data differentiating between cooling devices and a delayed national census.
India’s national sample survey, published in 2020-21, is the only one of its kind in recent years to separate air-conditioner ownership from air cooler ownership, estimating that only 4.9% of all Indian households owned an air conditioner.
The post Analysis: Energy-efficient air conditioning could save Indian homes 69bn rupees a year appeared first on Carbon Brief.
Analysis: Energy-efficient air conditioning could save Indian homes 69bn rupees a year
The UK has abandoned projects worth tens of millions of pounds that were meant to help protect Congo rainforests and support local people.
Together, these initiatives would have made up around half of the £200m that the UK pledged to support conservation in the Congo basin – the world’s second-largest rainforest.
When it hosted COP26 in Glasgow, the UK led a new initiative to end forest loss, which included a collective pledge by 12 donors of “at least” $1.5bn (£1.1bn) for Congo rainforest nations by 2025.
Development minister Jenny Chapman revealed last week that, as of 2024, the UK had only provided £39.8m towards this goal.
Alongside the US and much of Europe, the UK has significantly cut its aid budget in recent years, leading to much of its Congo rainforest spending being cancelled or reappraised.
The government says it still plans to “prioritise” rainforest regions, including the Congo basin, but civil society groups and MPs are concerned about the lack of “ring-fenced” forest funding in the UK’s new aid strategy.
COP pledge
At COP26, the UK – led by then prime minister Boris Johnson – launched the “Glasgow leaders’ declaration”, with a goal to “halt and reverse forest loss” by 2030. This was backed by more than 140 nations.
The UK also made various funding pledges, including £200m to protect the Congo basin, £350m for tropical forests in Indonesia and “up to £300m” for the Amazon.
These commitments target the world’s three largest rainforests, all of which face major forest loss due to threats such as agriculture, logging and climate change.
The Congo basin is the planet’s largest forested carbon sink. Yet, its six host nations are among the poorest in the world and face significant funding barriers.
This has global ramifications. An official UK assessment warned that “degradation or collapse” of the Amazon or Congo rainforests “threaten UK national security and prosperity”.
Forest cuts
Following successive aid cuts introduced by both the Conservative and then Labour governments – tracking a global trend – the UK’s Congo funding is under threat.
The Congo basin forest action programme (CBFA) was launched by the UK at COP27. It was explicitly set up to provide “roughly half” of the UK’s £200m Congo pledge.
CBFA set out to “empower central African nations”, such as the Democratic Republic of the Congo (DRC), with support for “community forests” and other measures to curb forest loss.
Now, after reporting delays, the UK has slashed the CBFA as part of the Labour government’s recent aid cuts, intended to free up money for defence spending.
Its original £90m budget has now been reduced to £18.8m. Government data shows that £15m of this has already been spent.
This is not the only Congo project that has been dropped due to this latest round of aid cuts.
The Congo part of the biodiverse landscapes fund – championed by the previous government and worth at least £12.3m – has been closed, just two years into its seven-year schedule.
Government documents reveal more Congo forest funding is at risk as the UK scales back its aid budget, including the UK’s two largest remaining projects in the region.
One initiative, intended to “incubate forest-friendly enterprises” in DRC, faces “reduc[ed] budgets”. Officials working on the other, while more optimistic, reported that the project may be forced to operate in fewer countries as the cuts set in.
Documents also reveal the difficulties that come when operating in the Congo, including “complex political economies” and, in Gabon, a military coup – which “complicated matters”.
‘Breaking promises’
Damian Fleming, a senior director of forests at WWF International tells Carbon Brief:
“Tropical forest countries are making long-term policy and development choices in expectation that international partners will honour their commitments.”
In a series of recent parliamentary responses, Chapman revealed that the UK had only spent £39.8m on Congo forest finance, as of 2024. (She declined to provide any information on the Indonesia and Amazon regional goals.)
Despite being presented as the UK’s “contribution” to the £1.1bn-by-2025 global goal agreed at COP26, the £200m target has a deadline of 2029.
Therefore, while the collective goal has been met, the UK’s contribution so far has been relatively small.
Zac Goldsmith, a former Conservative minister who oversaw the forest targets at COP26, tells Carbon Brief that, in his view, the UK has “discarded” its regional pledges:
“We have gone from being perhaps the leader on protecting nature internationally to breaking promises to countries around the world for whom the environment is an existential issue.”
Future targets
The Labour government says it has met the five-year “climate finance” target of £11.6bn that expires this year.
Ministers also say the government has met “and exceeded” the £3bn and £1.5bn sub-goals for “preserving nature” and forests, respectively, within the £11.6bn. These are the funding streams that include support for the Congo basin and other rainforests.
The UK has funded a variety of projects in line with its forest goals, including mangrove restoration in Indonesia, support for carbon-offsetting projects in Brazil and promoting “forest stewardship” among farmers in Cameroon.
Chapman has stated that the UK will continue to “prioritise” the Congo rainforest, in line with its new plan for aid spending in Africa. The UK even helped to launch a new “call to action” for Congo basin funding at COP30 last year.
The UK government also says it supported the creation of Brazil’s flagship “Tropical Forest Forever Facility” (TFFF). However, so far it has not provided any funding for the facility.
When the government announced a new climate finance pledge for 2026 onwards, it stressed that nature would still be a “focus” and said it would also generate billions in “climate and nature positive investments”. Nevertheless, it dropped the “ring-fenced” amounts for nature and forests that had appeared in its previous pledge.
The UK, alongside other developed countries, has pledged to provide biodiversity finance to developing countries, under the Kunming-Montreal Global Biodiversity Framework (GBF) – a non-binding global pact to halt and reverse nature loss by 2030.
Sarah Champion, chair of the international development committee of MPs, says “sub-pledges” for nature and forests are a “cost-effective and impactful” way to ensure this finance is provided, alongside climate finance. She tells Carbon Brief that she was “concerned” about the move away from this approach:
“When the minister recently appeared before the international development committee, I was concerned to hear her characterise this shift as a ‘gamble’.”
A government spokesperson tells Carbon Brief:
“We remain committed to providing finance for forests, including in the Congo basin, as a core element of our overall climate funding.”
A shorter version of this article was first published in Cropped, Carbon Brief’s fortnightly newsletter that provides a digest of food, land and nature news, on 15 July 2026. Subscribe for free.
The post UK withdraws millions in funding from world’s second-largest rainforest in Congo appeared first on Carbon Brief.
UK withdraws millions in funding from world’s second-largest rainforest in Congo
Climate Change
Cropped 15 July 2026: Uganda starves | Trump opens endangered habitats | UK cuts rainforest aid
We handpick and explain the most important stories at the intersection of climate, land, food and nature over the past fortnight.
This is an online version of Carbon Brief’s fortnightly Cropped email newsletter.
Subscribe for free here.
Key developments
Global drought and heat
DRY THEN WET: A recent heatwave and months of low rainfall has led to a prolonged drought for Uganda, resulting in at least 16 deaths from hunger and significant crop losses, reported BBC News. Bastille Post Global suggested that “a developing El Niño later this year could bring heavier rainfall to parts of the region, raising the risk of flooding in areas now struggling with drought”.
FUNDING FOOD: The UN Food and Agriculture Organization (FAO) and the World Food Programme (WFP) have appealed for $200m in funding to help African nations deal with the impact of El Niño, stated Deutsche Welle. This would target 22 high-risk countries with measures, including “cash transfers, climate-resilient seeds, livestock protection and flood control.” The Guardian explained how El Niño could still “cause a severe shock to global food prices lasting into 2028”.
FARMING FEARS: Extreme weather has devastated agriculture across the world. India saw its driest June in 12 years, reported BBC News, and France has had a “double-digit production” decline, according to Le Monde. The Financial Times reported that farmers in the UK are mitigating the impacts of extreme heat by eliminating “chemicals and intensive ploughing to improve soil quality so it retains water”.
EURO FIRES: Wildfires have spread across Europe, with Spain reporting at least 12 deaths so far, according to the Guardian, and France experiencing road closures, said Reuters. Wildfire Today reported that the most extreme conditions are “across France, Spain and northern Portugal, the Alpine arc extending into northern Italy, the south of the UK and south-east Ireland”. CNN explained how “the climate crisis is driving hotter, drier weather, which is setting the stage for fiercer fire seasons”.
Endangering species
REDEFINING HARM: The Trump administration “reversed decades of longstanding environmental law protecting endangered species…opening up sensitive habitats…to drilling, mining, farming and real estate development”, reported CNN. According to the story, the change “redefines what constitutes ‘harm’” to endangered species, which historically prohibited habitat modification or degradation. Agence France-Presse reported that US environmental groups sued the Trump government over the move, arguing that it had violated “common sense, biological science and federal law”.
OPEN SEASON: Reuters reported that the change “limits the reach of the 50-year-old Endangered Species Act” (ESA), which is a “key regulatory consideration” when granting permits for “oil and gas, mining, electric transmission and other operations on federal lands and water”. Legal scholars told the New York Times the US government “was acting without conducting scientific research into the impact” of the change, while the National Mining Association “applauded the announcement”.
News and views
- INTERNATIONAL WATERS: After a significant delay, the UK ratified the Biodiversity Beyond National Jurisdiction Agreement (BBNJ), also known as the High Seas Treaty. Oceanographic detailed how this will allow for “marine protected areas across international waters for the first time”, but also stressed that the “hard part” starts now.
- SCOPE-FREE: The world’s largest meat supplier JBS “scrapped a key climate goal” in its net-zero plan that accounts for its suppliers’ emissions, “which make up the vast bulk of the company’s environmental footprint”, reported the Financial Times. The company told the paper it was difficult to control these “indirect” emissions.
- DEEP TROUBLE: Pacific gray whales are facing a “catastrophic die-off” as sea-ice loss threatens their food sources, said the Guardian. Separately, conservationists warned that more than half of all molluscs that “cluster around underwater vents” could face extinction from deep-sea mining, reported Reuters.
- ETHANOL PUSHBACK: India’s new rules to promote 100% ethanol fuel and make ethanol-blended fuel mandatory at pumps “triggered a political row”, reported the Times of India. While the Indian government defended the push to automobile owners, a Hindu editorial and an Indian Express comment warned against incentivising fuels made from “water-intensive” sugarcane and rice.
- AMAZON ACTION: Deforestation in the Brazilian Amazon fell to its lowest level in a decade, but president Lula’s plans to “end illegal deforestation by 2030” could be hampered if he is not re-elected, reported Al Jazeera. Meanwhile, Colombia’s outgoing environment minister warned of greater environmental and climate risk under the incoming government, said the Associated Press.
- WAR WORRIES: The International Energy Agency (IEA) warned of the impact of the Iran war on Africa’s clean cooking efforts as disruption in the strait of Hormuz has stunted supplies and increased prices of liquefied petroleum gas (LPG), explained Climate Home News.
Spotlight
UK ‘discards’ Congo rainforest funding
Amid worldwide cuts to aid spending, Carbon Brief explores how the UK is backtracking on funding for the Congo basin – the world’s second-largest rainforest.
The UK has abandoned projects worth tens of millions of pounds that were meant to help protect Congo rainforests and support local people.
Together, these initiatives would have made up half of the £200m that the UK pledged to support forest conservation in the Congo basin.
When it hosted COP26 in Glasgow, the UK led a new initiative to end forest loss, which included a collective pledge of “at least” $1.5bn (£1.1bn) for Congo rainforest nations by 2025.
Development minister Jenny Chapman revealed last week that, as of 2024, the UK had only provided £39.8m towards this goal.
COP pledge
At COP26, the UK – led by then prime minister Boris Johnson – launched the “Glasgow leaders’ declaration”, with a goal to “halt and reverse forest loss” by 2030.
The UK also made various regional funding pledges, including £200m for the Congo basin, £350m for tropical forests in Indonesia and “up to £300m” for the Amazon.
All of these rainforests face major forest loss. The Congo basin is the planet’s largest forested carbon sink, but its six host nations are among the poorest in the world and face significant funding barriers.
This has global ramifications. An official UK assessment warned that “degradation or collapse” of the Amazon or Congo rainforests “threaten UK national security and prosperity”.
Forest cuts
Following successive aid cuts introduced by both Conservative and Labour governments – tracking a global trend – the UK’s Congo funding is under threat.
The Congo basin forest action programme (CBFA) was explicitly set up to provide “roughly half” of the UK’s £200m Congo pledge.
Now, after reporting delays, the UK has slashed the CBFA as part of the Labour government’s aid cuts. Its £90m budget has been “quietly reduced by 79% to £18.8m”, according to the Times.
This is not the only Congo project that has been dropped due to aid cuts. The Congo part of the biodiverse landscapes fund – worth at least £12.3m – has closed five years early.
Official documents reveal more Congo forest funding is at risk, including the UK’s two largest remaining projects in the region. One initiative, intended to “incubate forest-friendly enterprises” in DRC, faces “reduc[ed] budgets”.
Documents also show the difficulties operating in the Congo, including “complex political economies” and, in Gabon, a military coup – which “complicated matters”.
‘Breaking promises’
Damian Fleming, a senior forests director at WWF International told Carbon Brief:
“Tropical forest countries are making long-term policy and development choices in expectation that international partners will honour their commitments.”
In a parliamentary response, Chapman said that the UK had spent £39.8m towards its £200m Congo target, as of 2024.
Despite being described as the UK’s contribution to the £1.1bn-by-2025 global goal agreed at COP26, the £200m target has a deadline of 2029. Therefore, while the collective goal has been met, the UK’s contribution was relatively small.
Zac Goldsmith, a former Conservative minister who oversaw the forest targets at COP26, told Carbon Brief that, in his view, the UK has “discarded” its regional pledges:
“We have gone from being perhaps the leader on protecting nature internationally to breaking promises to countries around the world.”
The Labour government says it has met its overarching “climate finance” goals and still intends to “prioritise” the Congo rainforest.
However, civil society groups and MPs are concerned about the lack of “ring-fenced” forest funding in the UK’s new aid strategy.
Watch, read, listen
TOXIC TROUBLES: DeSmog unpacked a new report that said Northern Ireland is being turned into a “toxic” pig and poultry farming “sacrifice zone” to satiate the UK’s meat appetite.
NEED TO NOAA: Laid-off scientists from the US’s National Oceanic and Atmospheric Administration (NOAA) launched Climate.Us – an independent, public-backed version of the climate information website shut down by Trump last year.
DRY FRUIT: A Dialogue Earth long read looked at how climate change is impacting apricot harvests in the “stark, high-altitude desert” region of Ladakh, India.
READING ALOUD: A London Review of Books podcast discussed Robin Wall Kimmerer’s influential book “Braiding Sweetgrass”, weighing its compelling themes and where it veers into “scientific overreach”.
New science
- Climate change could cause Indigenous peoples in the Amazon to lose 28-34% of their plant species and 18-23% of their associated services | Nature
- Biodiversity in forests can act as a “buffer” against compound extreme weather events | Nature Communications
- Zero-deforestation commitments in Indonesia’s palm oil sector have had “no additional impacts” on reducing forest loss | Proceedings of the National Academy of Sciences
In the diary
- 7-15 July: High-level political forum on sustainable development | New York City
- 13-31 July: Meeting of the International Seabed Authority assembly and council | Kingston, Jamaica
- 16 July: International Energy Agency critical minerals outlook 2026, online
- 27 July-1 August: Scientific and technical subsidiary body meeting of the UN Convention on Biological Diversity | Nairobi, Kenya
This edition of Cropped was written by Jess Milligan, Josh Gabbatiss and Aruna Chandrasekhar. Cropped is edited by Dr Giuliana Viglione. This edition was edited by Daisy Dunne. Please send tips and feedback to cropped@carbonbrief.org.
The post Cropped 15 July 2026: Uganda starves | Trump opens endangered habitats | UK cuts rainforest aid appeared first on Carbon Brief.
Cropped 15 July 2026: Uganda starves | Trump opens endangered habitats | UK cuts rainforest aid
Climate Change
Campaigners oppose Dangote’s planned Kenya refinery over climate and ecological risks
Climate and environment campaigners have urged the Kenyan government to halt plans for a proposed 700,000-barrel-per-day oil refinery backed by Africa’s richest man, Aliko Dangote, warning the project threatens one of East Africa’s most ecologically sensitive coastlines.
The refinery, which is planned to be situated in Lamu County on Kenya’s northern coast, will be East Africa’s largest refining project and is expected to take up to three years to build. Once finished, it would supply refined petroleum products to Kenya, Uganda, Tanzania and Rwanda, among others, helping to reduce the region’s dependence on imported fuels.
Campaigners are questioning the viability of such a large refinery at a time when renewable energy and electric transportation are expanding rapidly.
Mohamed Adow, director of a Kenya-based climate and energy think-tank Power Shift Africa, said the decision to give Dangote the green light for the refinery is “an extraordinary act of environmental recklessness and economic short-sightedness”, arguing it would tie Kenya to “yesterday’s energy system” just as global demand for petroleum products faces increasing uncertainty.
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Campaigners argue the refinery risks coming online just as transport – the largest market for petrol and diesel – is beginning to electrify across the continent.
Kenya launched a National Electric Mobility Policy earlier this year to speed up the uptake of electric vehicles (EVs) and reduce the country’s roughly $5 billion annual fuel import bill. Ethiopia has already banned imports of non-electric vehicles and now has more than 100,000 EVs on its roads, while Rwanda is expanding its electric mobility programme with plans to convert its fleet of around 100,000 motorcycles to electric.
Adow said the project risks billions of dollars in investment in infrastructure that could become obsolete as the world moves away from oil.
“Building a refinery today assumes decades of robust demand for fuels that much of the world is actively trying to phase out,” he said in a statement.
Ecological concerns
Lamu – the proposed site for the project – is home to the UNESCO World Heritage-listed Lamu Old Town and an archipelago containing extensive mangrove forests, coral reefs and seagrass beds that support fisheries, tourism and coastal livelihoods.
Locating the refinery in Lamu would “place one of Africa’s largest fossil fuel developments in one of the continent’s most ecologically sensitive and culturally significant coastal regions,” Power Shift Africa said.
Major emitting countries knew of climate risks decades earlier than claimed
Sherelee Odayar, oil and gas campaigner at Greenpeace Africa, warned that a refinery of this scale could increase the risk of habitat destruction, marine pollution, oil spills and air pollution in one of East Africa’s most fragile coastal ecosystems.
She said the risks stem not only from the refinery itself – including storage tanks, pipelines and fuel handling facilities – but also from the large volumes of crude oil that would need to be shipped into Lamu and refined products exported by sea. Increased tanker traffic and fuel transfers, she said, would raise the likelihood of accidents in ecologically sensitive coastal waters.
Odayar added that Lamu’s low-lying, flood-prone coastline could compound those risks by damaging infrastructure and carrying contaminants from storage facilities into nearby fishing grounds and marine ecosystems.
“Lamu’s mangroves, coral reefs and seagrass beds are not expendable; they support fisheries, livelihoods and coastal protection,” Odayar added.
She said Kenyan authorities should suspend any approvals until an independent environmental and social impact assessment is completed, with genuine public participation and transparent scrutiny of the long-term economic, health and ecological risks.
“Any review must assess cumulative impacts on Lamu’s mangroves, coral reefs, seagrass beds and fishing livelihoods, alongside the wider economic risk of locking Kenya into costly fossil fuel infrastructure as the global energy transition accelerates”.
Dangote Group declined to answer questions from Climate Home News when contacted by phone.
Technological change threaten project’s future
The Kenya refinery would replicate Dangote’s 650,000-barrel-per-day refinery in Lagos, currently Africa’s largest, which has plans to more than double capacity to 1.4 million barrels per day by 2028.
Adow of Power Shift Africa said projects like this represent “a breathtaking failure to recognise where the global economy is heading”, pointing out that the East African refinery risks arriving when Africa is experiencing an unprecedented clean energy boom.
Referencing Africa’s solar boom, global electric vehicles uptake and the International Energy Agency’s projection that global oil demand is set to enter a decline later this decade, the think-tank founder said African governments risk anchoring the continent’s future to an industry facing mounting economic uncertainty.
Loss and damage fund delays first project approvals as needs dwarf resources
The organisation said the project faces a bigger threat aside from environmental opposition and that is technological change. “The danger is not simply that the refinery will pollute, it is that it will become obsolete long before it has paid for itself,” he added.
Kenyan President William Ruto said the project will create about 60,000 jobs for Kenyans and supply refined fuel to eight East and Central African countries.
GreenPeace Africa’s Odayar said the promise of ‘thousands of jobs’ cannot be used to hide the true cost of the investment which is that large fossil fuel projects often create temporary jobs while undermining existing livelihoods in fishing, tourism and small-scale local economies.
“The enormous capital required for a project of this scale could instead help accelerate Kenya’s renewable energy future through solar, wind, geothermal, storage and better energy access,” she added.
The post Campaigners oppose Dangote’s planned Kenya refinery over climate and ecological risks appeared first on Climate Home News.
Campaigners oppose Dangote’s planned Kenya refinery over climate and ecological risks
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