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Global carbon dioxide (CO2) emissions from energy use and industry could peak as soon as this year, according to Carbon Brief analysis of figures from the International Energy Agency (IEA).

The IEA’s latest World Energy Outlook 2023 says it now expects CO2 emissions to peak “in the mid-2020s” and an accompanying press release says this will happen “by 2025”.

Yet the IEA’s own data shows the peak in global CO2 coming as early as this year, partly due to what the outlook describes as the “legacy” of the global energy crisis triggered by Russia’s invasion of Ukraine.

Other highlights from Carbon Brief’s in-depth examination of the outlook include:

  • Global fossil fuel use peaking in 2025, two years earlier than expected last year.
  • For the first time, coal, oil and gas each peaking before 2030 under current policies.
  • Fossil fuel peaks being driven by the “unstoppable” growth of low-carbon technologies.
  • The IEA boosting its outlook for global solar capacity in 2050 by 69% since last year.
  • The IEA expecting 20% more electric vehicles on the road in 2030 than it did last year.
  • A key focus on slowing economic growth and faster low-carbon uptake in China, where fossil fuel demand is now expected to peak in 2024.

Yet climate policies remain far from sufficient to limit warming to 1.5C, the IEA warns.

The outlook reiterates the IEA’s ideas for five “pillars” to keep the path to 1.5C open at COP28, including targets to triple renewable capacity and double the rate of energy efficiency improvements by 2030.

(See Carbon Brief’s coverage of previous IEA world energy outlooks from 2022, 2021, 2020, 2019, 2018, 2017, 2016 and 2015.)

World energy outlook

The IEA’s annual World Energy Outlook (WEO) is published every autumn. It is widely regarded as one of the most influential annual contributions to the climate and energy debate.

The outlook explores a range of scenarios, representing different possible futures for the global energy system. These are developed using the IEA’s “Global Energy and Climate Model”.

The 1.5C-compatible “net-zero emissions by 2050” (NZE) scenario was introduced in 2021 and updated in September 2023.

The report notes that the path to 1.5C is made more difficult by each year of “high emissions and limited progress”, but adds that the “recent acceleration in clean energy” is keeping a path open.

Alongside the NZE is the “announced pledges scenario” (APS), in which governments are given the benefit of the doubt and assumed to meet all of their climate goals on time and in full.

Finally, the “stated policies scenario” (STEPS) represents “the prevailing direction of energy system progression, based on a detailed review of the current policy landscape”. Here, the IEA looks not at what governments are saying, but what they are actually doing.

Annex B of the report breaks down the policies and targets included in each scenario. In effect, the IEA is judging the seriousness of each target and whether it will be followed through.

For example, the provisions of the US Inflation Reduction Act are included in the STEPS. But the US target to cut emissions to 50-52% below 2005 levels by 2030 is only met under the APS.

Among various new policies included in the STEPS since last year’s outlook are Japan’s “green transformation” programme that aims to raise the share of renewables and nuclear in the country’s electricity mix, as well as ensuring all new car sales are low-emissions from 2035.

Japanese Prime Minister, Fumio Kishida, attends a conference for green transformation in Tokyo.
Japanese Prime Minister, Fumio Kishida, attends a conference for green transformation in Tokyo. Credit: Associated Press / Alamy Stock Photo.

The report emphasises that “none of the scenarios…should be considered a forecast”. It says:

“The intention is not to guide the reader towards a single view of the future, but rather to promote a deeper understanding of the way that various levers produce diverse outcomes, and the implications of different courses of action for the security and sustainability of the energy system.”

Indeed, the design of the scenarios means that the STEPS is all but guaranteed to have become more ambitious by the time next year’s outlook is published – notwithstanding recent policy rollbacks in the UK – as governments around the world continue to implement their pledges.

This increase in ambition over time, as announced pledges are converted into stated policies, is clear from the historical record. (See below for charts comparing IEA outlooks over time.)

In 2021, the newly introduced NZE took centre stage in the IEA’s outlook, with the scenario mentioned 201 times per 100 pages against just 115 for the STEPS.

The STEPS returned to prominence last year and that trend continues in 2023’s outlook, which mentions the scenario 247 times per 100 pages, against just 157 mentions for the NZE.

Another notable change in the 2023 outlook is its shorter length, at 356 pages, compared with 524 last year and as many as 810 in 2019. As a result, this year’s report allows just five pages each to look specifically at coal, oil and gas, whereas the 2022 edition gave them 20-44 pages each.

Emissions peak as soon as 2023

One of the most striking findings in this year’s outlook is that global energy-related CO2 emissions could peak as soon as this year – and by 2025 at the latest.

Carbon Brief understands that the agency did not want to put a firm marker down on 2023, as the expected peak in global emissions will be affected by economic growth, weather and other factors.

However, Figure 1.15 in the report clearly shows CO2 emissions peaking this year under current policy settings in the STEPS scenario.

This curve is reproduced in the figure below, which illustrates the seismic shifts in the global trajectory for CO2 emissions since the signing of the Paris Agreement in 2015.

The thick black line shows how, for much of recent history, global CO2 emissions have marched relentlessly upwards, as growth in populations and energy use have led to higher fossil fuel use.

The pre-Paris policy baseline is shown in grey, illustrating how, on the eve of the COP21 summit where the deal was agreed, the IEA expected emissions to continue rising for decades.

Since that moment in 2015, the adoption of new climate policies and the accelerating spread of low-carbon technologies has seen the growth in global emissions slowing down.

In 2021, the IEA found government policies had advanced sufficiently to bring about a peak in global energy-related CO2 emissions (grey-blue line), with the subsequent decline deepening in the 2022 outlook (light blue).

This year’s outlook (dark blue) sees emissions peaking as soon as 2023 under current policy settings – two years earlier than expected in 2022 – and falling even more steeply after the peak.

Global CO2 emissions could peak as soon as 2023, IEA reveals.
Global CO2 emissions from fossil fuels and industry, billion tonnes, 1965-2050. Chart shows historical emissions (black), pre-Paris policy baseline (grey, 2015 “current policies scenario”), policy in 2021-2023 (blue, “stated policies scenarios”), as well as pledges in 2023 (red, “announced pledges scenario”) and the IEA’s suggested path to staying below 1.5C (yellow, “net-zero emissions by 2050 scenario”). Source: Carbon Brief analysis by Simon Evans and Verner Viisainen of IEA world energy outlooks 2015-2023. Chart by Tom Prater for Carbon Brief.

Despite the improved outlook for global emissions, the outlook shows that current policies remain massively insufficient to meet governments’ climate pledges – including their long-term net-zero targets. If met, these pledges would see emissions falling along the red line in the figure above.

Moreover, even meeting those climate pledges would fall far short of what would be needed to limit warming to less than 1.5C above pre-industrial temperatures (yellow line).

‘Beginning of the end’ for fossil fuels

The IEA ascribes the changing outlook for global emissions – at least in part – to the global energy crisis. Last year’s report said that Russia’s invasion of Ukraine had “turbo-charged” the shift away from fossil fuels. Contrary to some commentary, the IEA repeats this message again:

“A legacy of the global energy crisis may be to usher in the beginning of the end of the fossil fuel era; the momentum behind clean energy transitions is now sufficient for global demand for coal, oil and natural gas to all reach a high point before 2030 in the STEPS.”

Although the agency does not put precise figures on these “high points” for fossil fuels – presumably due to the uncertainty around the exact timing – Carbon Brief analysis of the IEA’s data shows coal, oil and gas reaching peaks in 2022, 2028 and 2029, respectively.

This would see global demand for all three fossil fuels combined peaking in 2025, as shown by the dark blue line in the figure below. This 2023 policy curve is compared against historical demand for fossil fuels (black), the pre-Paris baseline (grey) and earlier policy settings (shades of blue).

The impact of countries meeting all of their climate pledges as of 2021, 2022 and 2023 are shown by the red curves, while the IEA’s increasingly narrow pathway to 1.5C is shown in yellow.

Climate policy is bringing world closer than ever before to a peak in fossil fuel use.
Global use of fossil fuels, exajoules, 1965-2050. Chart shows historical demand (black), the pre-Paris policy baseline (grey, 2015 “current policies scenario”), policy in 2021-2023 (blue, “stated policies scenarios”), as well as pledges in 2021-2023 (red, “announced pledges scenarios”) and the IEA’s suggested paths to staying below 1.5C in 2021-2023 (yellow, “net-zero emissions by 2050 scenarios”). Source: Carbon Brief analysis by Simon Evans and Verner Viisainen of IEA world energy outlooks 2015-2023. Chart by Tom Prater for Carbon Brief.

The IEA’s assertion that coal, oil and gas will each see peaks in demand this decade has been met with strong pushback from the Opec oil producers’ cartel and some US oil majors.

However, the IEA refers to a range of datapoints in support of its findings, with the rate of new fossil fuel infrastructure being built having already peaked in key areas.

Growth in coal-based steel, cement and electricity generation capacity peaked in 2003, 2010 and 2012, respectively, for example.

Similarly, global sales of combustion-engine cars, motorbikes and trucks peaked in 2017, 2018 and 2019, respectively. Additions of gas power plants peaked in 2002 and sales of gas boilers in 2020.

These are all leading indicators that “set the scene” for declines in coal, oil and gas use later this decade, the outlook says.

Yet the report notes that, under current policy settings, demand for oil and gas would enter a prolonged plateau after peaking this decade. As IEA energy analyst Peter Zeniewski notes on Twitter, “[oil and gas would] still hang around, stubbornly, for decades in the STEPS”.

Lots of reactions to the #IEA World Energy Outlook 2023 finding that fossil fuels reach a peak based on today’s policy settings (the ‘STEPS’ scenario). Worth digging in a bit as to what a peak actually means (and doesn’t). Thread.

Even so, the report points to potential for significant “overinvestment” in oil and gas, with current levels of spending “almost double” the amount needed in the IEA’s 1.5C pathway. It says this “creates the clear risk of locking in fossil fuel use and putting the 1.5C goal out of reach”.

The outlook goes on to make a thinly veiled reference to certain countries and oil majors, saying their calls for increased oil and gas investment are at odds with the latest market trends.

It says circumstances have changed in recent years, because oil and gas investment has already grown, whereas the outlook for oil and gas demand has shrunk.

As a result, the IEA says its own warnings of oil and gas “underinvestment”, made in previous editions of the outlook, are no longer valid. The report says:

“[T]he fears expressed by some large resource-holders and certain oil and gas companies that the world is underinvesting in oil and gas supply are no longer based on the latest technology and market trends.”

Despite these warnings, the IEA argues that “simply cutting spending on oil and gas will not get the world on track for [1.5C]”. Instead, it says the “key is to scale up investment in all aspects of a clean energy system to meeting rising demand for energy services in a sustainable way”.

It adds that risks are “weighted more towards overinvestment”:

“Both overinvestment and underinvestment in fossil fuels carry risks for secure and affordable energy transitions…When it comes to the overall adequacy of spending, however, our analysis suggests that the risks are weighted more towards overinvestment than the opposite.”

‘Unstoppable’ clean energy

A major driver of the reduced outlook for fossil fuel growth is the “accelerating” shift to low-carbon technologies, which IEA executive director Dr Fatih Birol says in the report foreword is “moving faster than many people realise”.

This is one of several key distinctions that Birol draws between the current global energy crisis – which is continuing amid heightened geopolitical tensions and conflict in the Middle East – as compared with the 1970s oil crisis 50 years earlier. Birol writes:

“A second difference between the 1970s and today is that we already have the clean energy technologies for the job in hand…Today, solar, wind, efficiency and electric cars are all well established and readily available – and their advantages are only being reinforced by turbulence among the traditional technologies.”

While inflationary pressures have pushed up the cost of low-carbon technologies after many years of rapid decline, the IEA notes that “the prices of all clean energy technologies today are significantly lower than a decade ago [and] they remain competitive with fossil fuel alternatives”.

It adds that there are signs that cost pressures are easing and that technology costs will “continue to trend downward”, although higher borrowing costs “complicate project economics” for now.

Overall, despite all these challenges, the IEA sees a much brighter outlook for low-carbon technologies than it did last year, due to more favourable policies and other factors.

The report lays out the reasons for this brighter outlook, which it says “provides hope for the way forward”. It explains:

“Investment in clean energy has risen by 40% since 2020. The push to bring down emissions is a key reason, but not the only one. The economic case for mature clean energy technologies is strong. Energy security is also an important factor, particularly in fuel-importing countries, as are industrial strategies and the desire to create clean energy jobs.”

As a result, it has once again massively boosted its outlook for global solar growth, with capacity now seen reaching more than 4,000 gigawatts (GW) by 2030 and 12,000GW by 2050, as shown by the red line in the figure below. This is up 56% in 2030 and 69% in 2050 on last year’s outlooks.

Moreover, the IEA’s pre-Paris outlook for global solar capacity of some 1,405GW in 2050 (blue) is set to be passed in 2023, with installations having already reached a total of 1,145GW last year.

The IEA has boosted the outlook for 'unstoppable' solar in 2050 by 69%.
Past and expected future global solar capacity, gigawatts, 2010-2050, in IEA world energy outlooks from 2015 (“new policies scenario”), 2021, 2022 and 2023 (“stated policies scenario”). Chart by Simon Evans for Carbon Brief.

This year’s outlook sees global solar capacity growing by some 344GW in 2023 – more than double the 163GW added in 2021 – with additions reaching nearly 500GW in 2030.

These numbers represent significant upgrades to expected solar growth, for which the IEA has been repeatedly criticised in the past. Nevertheless, the numbers remain well short of projections from BloombergNEF, which expects solar additions to reach more than 700GW in 2030.

This year’s WEO looks at what would happen if solar grows even more quickly – a scenario that it says is supported by ample manufacturing capacity.

In this “NZE solar case”, capacity additions would exceed 800GW in 2030, seen in the figure below. Global use of coal and gas to generate electricity would each be 15% lower than expected under current policy settings – and CO2 emissions in the power sector would also be 15% lower.

Left panel: Annual global additions of solar (yellow columns) and battery capacity (blue) in 2022 and in 2030 under the main STEPS pathway versus the “NZE solar case”. Right panel: Global CO2 emissions from electricity generation in 2022 and 2030 under the same scenarios. Source: World Energy Outlook 2023.
Left panel: Annual global additions of solar (yellow columns) and battery capacity (blue) in 2022 and in 2030 under the main STEPS pathway versus the “NZE solar case”. Right panel: Global CO2 emissions from electricity generation in 2022 and 2030 under the same scenarios. Source: World Energy Outlook 2023.

In order to integrate such large amounts of variable solar generation into electricity networks, the IEA says it would be “crucial” to scale up battery storage capacity to match. It adds:

“Measures to modernise and expand networks, facilitate demand response and boost power system flexibility would also be necessary.”

In a press statement summarising the changed circumstances reflected in this year’s outlook, Birol says the shift to low-carbon technologies is now “unstoppable”:

“The transition to clean energy is happening worldwide and it’s unstoppable. It’s not a question of ‘if’, it’s just a matter of ‘how soon’ – and the sooner the better for all of us.”

Birol goes on to criticise those calling for new investments in oil and gas in the name of energy security, saying such claims “look weaker than ever”. He says:

“Governments, companies and investors need to get behind clean energy transitions rather than hindering them. There are immense benefits on offer, including new industrial opportunities and jobs, greater energy security, cleaner air, universal energy access and a safer climate for everyone. Taking into account the ongoing strains and volatility in traditional energy markets today, claims that oil and gas represent safe or secure choices for the world’s energy and climate future look weaker than ever.”

In addition to boosting the outlook for solar in its main STEPS pathway, the IEA also sees 20% more electric vehicles on the world’s roads and 13% more wind power capacity by 2030.

These changes contribute to the lower fossil fuel demand seen in the preceding section. The IEA sees coal demand in 2050 being 9% lower than expected last year, oil down 6% and gas 3%.

The other major shift since last year’s outlook is the structural changes in China’s economy, where growth is slowing and shifting towards less carbon-intensive sectors.

The outlook gives special attention to this slowdown, which it says is the result of ongoing strains in the Chinese property sector and long-term decline in its working-age population.

The press release accompanying the outlook says these changes will result in a peak and then decline in China’s energy demand and a structural decline for fossil fuels and CO2 emissions:

“China, which has an outsize influence on global energy trends, is undergoing a major shift as its economy slows and undergoes structural changes. China’s total energy demand is set to peak around the middle of this decade, the report projects, with continued dynamic growth in clean energy putting the country’s fossil fuel demand and emissions into decline.”

These changes point to a peak in the nation’s demand for fossil fuels in 2024, as shown by the purple columns turning negative in the chart, below right. After this point, the IEA sees growth in low-carbon sources of energy (green columns) more than covering rising demand.

Left panel: Change in selected economic indicators in China relative to their peak levels. Right panel: Annual change in China’s energy demand and the contributions to growth from unabated fossil fuels (purple) and low-carbon sources (green). Source: World Energy Outlook 2023.
Left panel: Change in selected economic indicators in China relative to their peak levels. Right panel: Annual change in China’s energy demand and the contributions to growth from unabated fossil fuels (purple) and low-carbon sources (green). Source: World Energy Outlook 2023.

In addition to this central case, the IEA also looks at what would happen if China’s economic slowdown goes even further, with “slower but ultimately ‘higher quality’ growth”. In this “low” case, China’s emissions would fall an additional 0.8GtCO2 in 2030 to nearly 15% below 2022 levels.

In an alternative “high” case, China’s emissions would still peak by 2030 – in line with the government’s international climate goal  – but at a level 0.8GtCO2 higher than in the central STEPS scenario, due in particular to stronger coal demand.

Clean energy outspending fossil fuels

Global investment in “clean energy”, at $1.8tn in 2023, is already nearly twice as high as fossil fuel spending ($1tn), the IEA says, as shown in the leftmost column in the figure below.

The IEA expects this disparity to grow over the coming decades. Clean energy would outspend fossil fuels by 2.5 times in 2030 under current policy settings (STEPS).

If countries get on track to stay below 1.5C (NZE), then clean energy spending would reach $4.3tn in 2030, while fossil fuel investment would fall 60% to just $0.4tn, some 10 times lower.

Investment in energy, in $tn (columns, left axis) and as a share of global GDP (%, yellow circles, right axis). Source: World Energy Outlook 2023.
Investment in energy, in $tn (columns, left axis) and as a share of global GDP (%, yellow circles, right axis). Source: World Energy Outlook 2023.

Although the shift towards net-zero would require significant upfront capital spending, the IEA figures show that the extra investment would only amount to around 1% of global GDP.

Moreover, much of this extra investment would be paid back in lower running costs, with fossil fuel importing countries such as the UK and China also benefiting from lower trade deficits and increasing energy security. The report explains:

“The large increase in capital investment in the NZE scenario is partly compensated for by lower operating costs that follow the shift away from fossil fuels towards capital-intensive clean technologies. For fossil fuel importing countries, the shift towards clean energy also improves trade balances and enhances energy security as the share of energy met through domestically sourced renewables starts to rise.”

‘Very difficult’ path to 1.5C

The IEA says current government policies in the STEPS pathway would peak global CO2 emissions by 2025, sufficient to keep global warming to 2.4C by 2100.

This is a significant improvement on the 3.5C of warming it expected under the policies in place before the Paris Agreement. Moreover, warming would be limited to 1.7C if all countries meet their near- and longer-term climate pledges and net-zero targets, the agency says.

Yet this would still leave a significant gap to staying below 1.5C, a path that the IEA says is “very difficult – but remains open”.

The outlook reiterates the agency’s five ideas for keeping the door to 1.5C open at COP28, which it has been promoting all year – and some of which have been taken up by the COP28 presidency.

Its suggested targets are that by 2030, the world should: triple the capacity of renewable energy sources to 11,000GW; double the annual rate of energy efficiency improvements to 4%; and cut methane emissions from fossil fuel extraction by 75%, as shown in the figure below.

Left: Global renewable energy capacity, gigawatts. Centre: Annual rate of improvement in the energy intensity of the global economy – the rate of energy use per unit of GDP. Right: Global energy sector methane emissions, million tonnes. Source: World Energy Outlook 2023.
Left: Global renewable energy capacity, gigawatts. Centre: Annual rate of improvement in the energy intensity of the global economy – the rate of energy use per unit of GDP. Right: Global energy sector methane emissions, million tonnes. Source: World Energy Outlook 2023.

These “mature, tried and tested, and in most cases very cost effective” actions would provide more than 80% of the emissions cuts needed by 2030 to get on track for 1.5C, the IEA says.

In order to achieve these goals, the IEA says there will be a need for “innovative, large-scale financing mechanisms” to support low-carbon investments in emerging and developing countries.

It also calls for “measures to ensure an orderly decline in the use of fossil fuel” such as ending the approval of new unabated coal power plants.

Finally, the IEA notes that there is “noticeably less reliance on early-stage technologies to reach net-zero emissions” in this year’s outlook as compared with 2021. It explains:

“At that time, technologies not available on the market, ie at prototype or demonstration phase, delivered nearly 50% of the emissions reductions needed in 2050 to reach net-zero. Now that number is around 35%.”

Analysis of the WEO was conducted by Carbon Brief’s Simon Evans and Verner Viisainen.

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Analysis: Global CO2 emissions could peak as soon as 2023, IEA data reveals

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Energy transition policymaking must evolve to fit an age of rupture

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Andreas Sieber is head of political strategy at 350.0g. Cat Abreu is director of the International Climate Politics Hub.

From the US abduction of Venezuela’s president at the start of this year to the Iran war which rumbles on, disruption is the new normal for global geopolitics, more often than not linked to conflict over supplies of oil and gas. 

Events so far in 2026 – driven largely by the desire of the Trump administration to grab control of fossil fuels around the world – show that the climate community’s approach to energy diplomacy will have to evolve if we are to operate effectively and push for climate action in such a volatile landscape.

Today’s climate and energy governance must be able to cope with trade wars, genocide, fascism, spiralling inequality and challenges to multilateralism. The increasingly dominant paradigms of economic competitiveness, energy security and green industrialisation can help drive the transition but they also challenge our collective mission to deliver an equitable green shift.

US-China rivalry dominates

Longer-term geopolitical trends that are seeing power move from West to East and North to South have fuelled a US–China “superpower rivalry”, which is pulling the global economy apart and reining in trade.

A key question will be how the fracture “lines” are drawn: by the US and China, or also by other countries or blocs? Many governments will try to remain “in the middle” between the two giants to capture economic gains from both sides. Yet despite the language of “strategic autonomy”, Washington and Beijing may be in a position to force choices via market access, export controls and sanctions.

    At first glance, this may not seem particularly relevant for climate and energy politics. But Huawei’s exclusion from 5G operations across the political West and India following the so-called Clean Network Campaign by the US government serves as a warning of what could happen to climate green tech.

    And the recent debate to cut out Chinese inverters from European markets follows the same pattern – US security forces perceive a risk and start encouraging their allies to drop Chinese technology.

    The new drivers: competition and security

    Despite this fracturing geopolitical and economic context, energy transition is still happening. To ensure it is effective and equitable, we need to understand what is driving it and how to adapt climate politics so that it better responds to these drivers.

    Put simply, China is supplying the world with low-cost renewables (roughly 60% of critical wind and 80% of solar components), batteries, EVs and other key elements. Other countries now also want their piece of the green tech pie and are forming industrial policies to get it.

    It is this new competitiveness-driven logic that will shape the quest for decarbonisation, which has shifted from cooperating around the cost of tackling climate change to rivalry for the benefits of climate action.

    Over 90% of new renewables projects are now cheaper than fossil alternatives. Gas-fired power is 3–4 times more expensive than solar and wind. In 2015, most decarbonisation policies were “traditional” emissions-cutting strategies like carbon pricing or net zero dates, whereas green industrial policies now underpin the majority.

    Iran war could boost fossil fuel phase-out push, says Colombian minister

    Meanwhile, security has become a central driver of energy politics. We are living through the second major fossil fuel crisis in just four years. Elevated oil and gas prices will impose up to $1 trillion in additional costs on the global economy by the end of the year if disruption continues in the Strait of Hormuz. Fossil fuel supply chains have exposed countries to conflict, coercion and brutal price shocks.

    Fossil fuel volatility destabilises whole economies – higher fuel costs drive up food prices, increase political instability, and push millions into poverty and hunger. This incentivises governments to shield themselves from global shocks, especially in countries that are net fossil fuel importers and home to roughly three-quarters of the world’s population. 

    Yet security fears can cut both ways. The same instability that makes fossil fuel dependence untenable is also sharpening concern over China’s dominance of critical clean technologies and supply chains.

    Equity, cooperation and the opportunity for change

    Developing countries benefit from the rapid uptake of renewables enabled by low-cost Chinese technologies. But significant fiscal space and public investment is needed for the electricity grids and infrastructure required to fully unleash the energy transition, as well as for green industrialisation to diversify revenue streams.

    Despite this, industrial-scale domestic production and ownership often remain out of reach for too many countries that lack the fiscal space to allow green supply chains to flourish and compete with their traditional industrial base. But more just and diversified green tech supply chains could be achieved with concomitant support.

    Can giant batteries unlock Africa’s green industrial future?

    For the first time in decades, the international order is being substantially reshaped. If within this context, decarbonisation is increasingly driven by green industrial policy, energy security and competitiveness, the climate policy community must better anticipate where these debates are moving. We must speak the same language, and enter the forums where decisions are made, including security, trade and bilateral or trilateral spaces.

    We should build on an enlightened self interest recognising that cooperation remains essential and beneficial. This includes using the UN climate process differently: less as an ever-expanding negotiation machine, and more as a space for norm-setting, political alignment and deal-making. In an age of fragmentation, effective cooperation must not only be framed as necessary but thought of as a strategically compelling source of resilience and shared advantage.

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    Extreme heat costing India’s poorest workers 2% of GDP, survey finds

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    Low-income Indian workers, many of them migrants from rural areas hit by climate change, are paying for worsening extreme heat through lost working days and health complications, with the cost equivalent to 2% of national GDP per year, new research shows.

    The International Institute of Environment and Development (IIED), a London-based think-tank, worked with local organisations to survey around 540 households of informal workers in three Indian cities: Ajmer, Delhi and Agra. Most had migrated from rural areas to find work in industries such as construction, brick-making, garment manufacturing and food packaging.

    The survey found them struggling through long working days with little access to shade, cooling, rest or water, as well as few toilets for women. And even when they go home, many live in makeshift shelters or airless cramped rooms with barely a single fan, bringing almost no respite.

    Outdoor workers are losing about 24 days of work a year due to heat, costing them nearly a tenth of their annual earnings, while indoor workers sacrifice roughly 15 days. On top of losing income, they are also bearing the cost of health problems like heat exhaustion, psychological stress and kidney damage brought on by repeated dehydration.

    If the survey’s findings are extrapolated to a national level, the IIED researchers estimate that the decline in productivity and effects of kidney disease combined add up to lost wages of $78 billion each year.

      Vishram Meena, 45, from Alwar in Rajasthan, has worked on construction sites in Ajmer for more than a decade, toiling for 10 to 12 hours a day carrying materials and mixing cement in the full sun.

      In May 2024, on one of the hottest days, he collapsed after feeling dizzy and suffering a nosebleed. His wife and colleagues managed to get him to hospital where he was diagnosed with heat stroke. He has since returned to the same building work because the family needs the money.

      “I went back because what else could I do? We are not machines. We are human beings. The heat is killing us slowly,” he was quoted as saying in a report on the survey’s findings.

      “Victorian-era” conditions

      Ritu Bharadwaj, IIED’s director of climate resilience, finance and loss and damage, described some of the stories from workers about their experiences of extreme heat as “genuinely horrifying”.

      Kusum, a tailor at a garment manufacturing and export unit in Kapashera, Delhi, recounted how the machines for ironing finished garments are in the same tiny room where workers are making the clothes, with steam and hot air building up through her shift.

      Fans are too far apart to move the air and nothing has changed in over a decade, she said, adding that “in summer, the unit feels like a furnace”.

      “These are Victorian-era working conditions and they’re completely unacceptable in the 21st century,” said Bharadwaj. She called for stepped-up social protection from the government to pay people for days they are unable work due to heat, as well as micro-insurance schemes with payouts triggered by temperature measurements.   

      This money would help families buy food and pay medical bills when their income dips if they fall ill or cannot work their usual hours due to soaring temperatures.

      Climate change-driven heatwaves hit Delhi’s Red Fort market traders

      The aim of the IIED study, Bharadwaj added, is to get policy-makers’ attention by showing the scale of damage extreme heat is doing to India’s GDP in an economy whose growth relies on service-led industries. “If the workers within them start falling sick, you know it’s the economic growth which is going to get impacted,” she told a webinar to present the research.

      “Whether [policymakers] care about the workers or not, at least they would care about the GDP, and therefore then invest in their care,” she explained.

      Labour code leaves out heat

      However, Bharadwaj noted that a 2026 reform to India’s labour law bringing a range of regulations together in one code does not include heat-related protections for workers and only applies to businesses above a certain size. She urged the government to introduce a temperature threshold above which all workers would be able to stop their activities.

      IIED and its partners have also carried out a similar study in Bangladesh which will be published later this month, showing that extreme heat is costing its workforce the equivalent of nearly 1.4% of GDP.

      Shakirul Islam, chairperson of the Ovibashi Karmi Unnayan Program (OKUP) in Bangladesh, said the government had introduced stricter safety policies for garment-making companies after the Rana Plaza complex collapsed in 2013. But, he said, these rules are rarely followed by manufacturers, especially at the level of smaller subcontractors.

      The workers’ welfare centres that do exist are open mainly during work hours so they are difficult to visit. Some companies also make saline water available for heat stress, which is no good for those with high blood pressure, he noted.

      For Indian women workers, a just transition means surviving climate impacts with dignity

      Archana Shukla Mukherjee, CEO of India’s Change Alliance, which also partnered with IIED on the survey, said it was time to hold both the government and businesses accountable for finding solutions to the intensifying problem of extreme heat’s effects on workers.

      She said that employee state insurance schemes should identify heat stroke as an occupational disease while companies along the whole supply chain should start putting in place heat protection measures, including for informal workers and migrants.

      If the tools and mechanisms available to help workers do not reach the most vulnerable and marginalised people, “then I think we are not doing something right,” she said.

      The post Extreme heat costing India’s poorest workers 2% of GDP, survey finds appeared first on Climate Home News.

      Extreme heat costing India’s poorest workers 2% of GDP, survey finds

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      Top maritime court rejects bid to halt UN deep-sea mining inquiry

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      A United Nations investigation into deep-sea mining firms will continue after the world’s top maritime court rejected their bid to suspend the inquiry triggered by a US-backed push to extract critical minerals from the ocean floor.

      In two orders issued on Saturday, the International Tribunal for the Law of the Sea (ITLOS) declined to halt an inquiry launched by the International Seabed Authority (ISA) into whether permit holders, including Tonga Offshore Mining Ltd (TOML) and Nauru Ocean Resources Inc (NORI), have breached their obligations under UN exploration contracts.

      The two companies are subsidiaries of Canadian firm The Metals Company (TMC), which earlier this year sought permits from the United States to commercially mine the deep seabed in an area already covered by its UN exploration licences, bypassing the ISA’s regulatory process.

      The inquiry was opened after TMC’s move raised questions over whether its subsidiaries had complied with their contractual obligations to the ISA, which regulates mining in international waters under the UN Convention on the Law of the Sea. TOML and NORI sued the ISA last June for allegedly targeting them “in breach of due process” and without “good faith”.

        While allowing the inquiry to proceed, the court ordered the ISA to ensure the companies receive due process. Judges said the regulator must explain the factual and legal basis of its inquiry, clarify the procedures being followed and provide TOML and NORI with a meaningful opportunity to respond.

        The companies seeks to mine an area called the Clarion-Clipperton Zone, which holds vast reserves of critical minerals like nickel, manganese and rare earths but is also home to a little-studied deep ocean ecosystem with thousands of unnamed species.

        In response to the court’s ruling, the ISA welcomed the decision, saying the inquiry “remains in effect” and would continue “with due regard to all applicable legal requirements”.

        Last week, during an annual meeting of its member governments, ISA secretary-general Leticia Carvalho said the resources in the ocean floor are “the common heritage of humankind” and upheld the agency’s role as “more important than ever”.

        TMC also welcomed the court decision in a statement and claimed that judges ruled to “protect the rights of TMC subsidiaries”.

        “Contractors like NORI and TOML, who have together spent hundreds of millions of dollars on the promise of a fair regulatory framework, should be informed of the factual and legal basis of any non-compliance inquiries, understand the procedure being applied, and receive a meaningful opportunity to respond,” said Gerard Barron, CEO of The Metals Company.

        Iridogorgia and bamboo coral pictured around the Johnston Atoll Unit of the Pacific Remote Islands Marine National Monument (Photo: NOAA Office of Ocean Exploration and Research)

        Environmental groups said the ruling allows scrutiny of the companies’ actions to continue.

        Louisa Casson, deep-sea mining campaigner with Greenpeace, said the “entire litigation has been an egregious waste of time and money”, which was part of the industry’s “textbook distraction tactic” meant to delay the consequences of the inquiry.

        “If the inquiry confirms that TMC’s subsidiaries are breaching their contracts, governments must send the strongest possible signal that complicity in unlawful deep sea mining will not be tolerated,” she said.

        While investigation is still ongoing, NORI’s contract is set to expire this week and is up for review. Governments asked the ISA to report back and make “make appropriate recommendations” by the next ISA assembly, its main decision-making body set to take place next week from July 27 to 31.

        The court ordered both the ISA and TMC to submit a report on how they complied with the ruling by August 31, and called on both to “cooperate and refrain from any action that might lead to
        aggravating the dispute”.

        The post Top maritime court rejects bid to halt UN deep-sea mining inquiry appeared first on Climate Home News.

        Top maritime court rejects bid to halt UN deep-sea mining inquiry

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