China’s carbon dioxide (CO2) emissions fell by 3% in March 2024, ending a 14-month surge that began when the economy reopened after the nation’s “zero-Covid” controls were lifted in December 2022.
The new analysis for Carbon Brief, based on official figures and commercial data, reinforces the view that China’s emissions could have peaked in 2023.
The drivers of the CO2 drop in March 2024 were expanding solar and wind generation, which covered 90% of the growth in electricity demand, as well as declining construction activity.
Oil demand growth also ground to a halt, indicating that the post-Covid rebound may have run its course.
A 2023 peak in China’s CO2 emissions is possible if the buildout of clean energy sources is kept at the record levels seen last year.
However, there are divergent views across the industry and government on the outlook for clean energy growth. How this gap gets resolved is the key determinant of when China’s emissions will peak – if they have not done so already.
Other key findings from the analysis include:
- Wind and solar growth pushed fossil fuels’ share of electricity generation in China down to 63.6% in March 2024, from 67.4% a year earlier, despite strong growth in demand.
- The ongoing contraction of real-estate construction activity in China saw steel production fall by 8% and cement output by 22% in March 2024.
- Electric vehicles (EVs) now make up around one-in-10 vehicles on China’s roads, knocking around 3.5 percentage points off the growth in petrol demand.
- Some 45% of last year’s record solar additions were smaller-scale “distributed” systems, creating an illusory “missing data problem”.
Why did emissions fall in March?
Looking at the first quarter of 2024 as a whole, China’s CO2 emissions increased significantly, based on preliminary data on energy consumption from the National Bureau of Statistics.
January and February of this year still saw large increases from the low base of 2023, when the economy was still subdued by the recent ending of zero-Covid restrictions.
As a result, CO2 emissions during the quarter increased by 3.8% year-on-year, with coal consumption growing 3%, oil 4% and gas 11% compared with the same period in 2023.
The turnaround happened in March, when CO2 emissions fell by 2%, due to a 1% fall in coal use, flat oil demand and a 22% drop in cement production. The reduction in CO2 emissions came despite a 14% rise in gas consumption, as the fuel is a minor part of China’s mix.
As seen in the figure below, China’s CO2 emissions had started increasing in February 2023, after Covid-19 controls were lifted in December 2022.
The year-on-year comparison to January-February 2023 is, therefore, still affected by the low base caused by the last year of zero-Covid, making March the first month to give a clear indication of the emissions trends after the rebound.
The main driver of China’s emissions growth in recent years has been the power sector (see below).
Conversely, the main reason the emissions trend turned into a reduction in March was that power-sector emissions growth slowed down sharply. Emissions from the sector only increased by 1% year-on-year, due to strong growth in solar and wind power generation.
While power-sector emissions stabilised, the largest source of reductions in emissions in March was the continued decline in demand for steel and cement from the construction sector, as illustrated in the figure below.
Steel production fell by 8% and, as a result, there was also a fall in production of the main fuel used by steel mills – coking coal. Cement production fell dramatically, by 22% year-on-year.
These trends seem set to continue, as real-estate investment continued to contract – for the third year – as a result of a government clampdown on excess leverage and financial risk in the sector, and sizable supply resulting from booming construction in the past.
The contraction in construction volumes has not resulted in as large a drop in China’s demand for steel and other energy-intensive metals as might be expected.
The reason is rapid growth and investment in manufacturing, which uses metals for the construction of facilities and the production of industrial machinery.
It is unlikely that this manufacturing growth can continue, as global markets for different goods and commodities become saturated. The government’s economic policy now emphasises “new productive forces”, in the latest attempt to shift economic growth away from traditional heavy industry. The term refers to high-end manufacturing and R&D, which are, for the most part, less energy intensive than China’s traditional industrial sectors.
Looking at other sectors in March 2024, oil demand for transport was unchanged on a year earlier – following months of strong increases – suggesting that the post-Covid rebound could be petering out.
The production of jet fuel (+35%) and petrol (+7%) still increased, indicating growth in demand from passenger transport, but diesel production stagnated (+1%) and total crude oil refining volumes also only increased 1%.
The rise in the share of electric vehicles (EVs) is making a meaningful dent in oil demand, with the share of electric vehicles out of all vehicles on the road increasing to 10.5%, from 7.0% a year ago, as estimated on the basis of cumulative sales over the past 10 years. This indicates that EV adoption lowered petrol demand growth by 3.5 percentage points.
Gas demand rebounded sharply, increasing 14% year-on-year, after a drop caused by high gas prices. Growth in gas consumption came predominantly from industry and households.
Power-sector gas consumption increased 8%, as the utilisation of gas-fired power plants recovered, but this only contributed a small fraction of the overall growth.
The share of gas in China’s energy mix fell from 2021 to 2023, after more than two decades of continuous increases, and has only now started to resume growth.
One recent driver of emissions increases continued: coal consumption in the chemical industry increased 14%, extending the double-digit growth seen in 2022 and 2023.
While there is not yet enough data to estimate CO2 emissions in April, industrial data for the month indicates that the trends seen in March continued.
Thermal power output – mostly from coal – grew at a slow rate of 1.3%, with most demand growth being covered by solar. Steel, cement and coke output fell by 8%, 9% and 7%, respectively, reflecting continued decline in construction volumes. Oil refining volumes fell 3%.
Domestic coal mining output fell 3% while imports increased 11%, meaning total supply fell 5%.
Gas demand saw further strong growth, with imports increasing 15% and domestic production 3%. Among energy-intensive industries, the chemical and non-ferrous metal industries continued rapid output growth.
Solar and wind covering demand growth
The stabilising emissions in the power sector are notable because electricity demand growth continued at a high rate of 7.4% – and hydropower utilisation stayed below the long-term average, affected by a prolonged drought.
Electricity demand growth has been exceptionally fast during the past few years, driven predominantly by industrial power use. In March, industrial demand growth slowed down, but a rebound in the service sector sustained overall growth.
Half of demand growth came from industry, with non-ferrous metals, chemicals, machinery and electronics the largest growth areas. One third came from services, with wholesale and retail trading the largest growth driver, and one sixth from households.
Household power demand has also seen a surge in the past couple of years, driven by a wave of air conditioning unit purchases triggered by the historic heatwave in 2022, especially in lower-income households that lacked air conditioning before.
Despite rapid growth in electricity demand, the rate of growth for large-scale power generation slowed to 3%, due to rising distributed solar power generation.
(Distributed solar refers to smaller-scale installations, often on the rooftops of homes and businesses, in contrast to the large, centralised solar farms.)
Overall, the record addition of solar and wind capacity in 2023 enabled these sources to deliver 22% of power generation and almost 90% of year-on-year growth in March, as shown in the figure below. The share of non-fossil power generation rose to 36.2%, from 32.6% last year.
The growing contribution of distributed solar power to generation has been somewhat hidden by the way that China’s monthly electricity data is reported. The National Bureau of Statistics only reports monthly power generation from very large-scale solar and windfarms. It has also made systematic upward revisions of previous year’s data, suggesting it had not captured output from new firms entering the market in real time.
As 45% of last year’s record solar additions were distributed generation, the exclusion of small solar installations is affecting these numbers a lot more than it used to.
This has caused a lot of confusion in China and overseas, especially as the reported electricity consumption became much larger than generation – an apparent impossibility. Bloomberg even called this a “missing data problem”.
The widening gap between electricity consumption and large-scale power generation makes it clear, however, that distributed solar is increasingly contributing to meeting electricity demand.
Unlike the monthly figures, there is no “missing” data in China’s annual reporting, as the yearly statistics include all power plants regardless of size. In 2023, for example, the annual statistics reported twice as much solar and 10% more wind power generation than the monthly statistics.
Indeed, calculating generation from reported installed capacity and utilisation hours of the capacity on a monthly basis reproduces the annual numbers closely. This makes it clear that the expansion of small-scale solar is contributing substantially to meeting electricity demand, even if the statistics bureau’s monthly data does not cover the power generation.
Clean energy boom continues
The fall in emissions in March was enabled by last year’s massive solar and wind power additions, with almost 300 gigawatts (GW) of new capacity connected to the grid. This boom accelerated in the first three months of 2024, with a 40% increase compared with the year before.
Solar power installations stood at 46GW, up 36% on year, and wind power installations at 16GW, increasing 50% year-on-year.
The first months of the year tend to be slower in terms of installations – and there are also gaps in reporting that mean that quite a bit of new capacity is only reported at the end of the year.
The strong year-on-year growth indicates that concerns about grid access for new projects have not affected the pace of capacity additions yet. Even if growth rates are tempered for the rest of the year, the numbers to date indicate that last year’s record pace could be maintained in 2024.
Solar panel production grew another 20% in January-March from last year’s already significant numbers, signalling strong demand from China and overseas.
EV production grew 29% while total vehicle production resumed its fall, so the share of EVs continued its rapid climb, reaching 31% in the first quarter compared with 26% the year before.
As the economics of solar and wind projects are strong, the main constraint on capacity additions will be grid access. Numerous provincial grid operators already began to limit additions of new wind and solar last year, as they were concerned that they would not be able to fully integrate the additional generation.
This highlights the shortcomings in China’s grid operation, because such challenges are arising when the share of wind and solar power in China’s power generation is still modest, at 15%, compared with 27% in the EU and 40% in Germany, Spain and Greece.
Action is being taken. The NDRC has begun to relax requirements for the grid access of solar and wind generators. This will increase the uncertainty for investors in wind and solar projects, but makes it easier for grid operators to integrate more capacity and will, therefore, support growth in capacity and generation.
The NDRC also issued a policy on developing electricity storage, pledging that, by 2027, the power system would be able to integrate new solar and wind capacity while keeping the share of their output that is wasted due to grid issues to a low level.
While solar and wind are beginning to cover most or all of power demand growth, investment in coal power is continuing. Additions of thermal power capacity slowed down slightly year-on-year in the first quarter, but provinces’ “key project lists” for 2024 include over 200GW of thermal power projects, which are mainly coal-fired.
Future ambition a major question mark
The fall in China’s emissions in March could mark the turnaround after blistering growth since 2020. As explained in analysis for Carbon Brief published last autumn, the current growth rate of clean energy has the potential to peak the country’s emissions.
Whether the clean energy growth will continue is, therefore, the key question for the future path of China’s emissions. However, views about the pace of future wind and solar developments diverge widely.
The China Photovoltaic Industry Association (CPIA) forecasts average annual capacity additions of 225GW from 2024 to 2030 in its “conservative” scenario, a slight increase from the 217GW installed in 2023. Its “optimistic” scenario would see this accelerate to 280GW per year. Under the CPIA’s projections, China’s total installed solar capacity reaches 2200-2600GW in 2030, up from 660GW today.
According to the wind power industry, China needs to install more than 50GW of new wind power capacity annually from 2021-2025 and more than 60GW annually from 2026 onwards, in order to reach the 2060 carbon neutrality target. This is a fairly modest trajectory, since capacity additions in 2023 were already 76GW.
On the other hand, the head of the National Energy Administration (NEA) Zhang Jianhua wrote in a recent article that clean-energy capacity additions should be kept above 100GW per year, less than half of the level achieved in 2023, implying that he views the recent acceleration as an anomaly and not something to be maintained.
Similarly, the NEA’s 2024 workplan targets 170GW of non-fossil power capacity added, as implied by the targets for total generating capacity and the share of non-fossil energy capacity. (Despite the 160GW target in the 2023 workplan, additions reached nearly 300GW.)
These alternative visions of wind and solar expansion are shown in the figure below. The dark blue line shows Zhang’s expectation that annual capacity additions would return to levels seen during 2020-2022, while the light blue and red lines show the renewable industry forecasts of growth broadly being maintained at 2023 levels – or steadily increasing.
The difference between the CPIA and NEA levels of ambition amounts to 1,400-1,800GW of solar and wind power capacity by 2030. If the resulting clean power generation were to replace coal in 2030, the difference in CO2 emissions would amount to 10-15% of China’s current emissions. By 2035, with a continuing trend in wind and solar growth, the CO2 saving would reach 20-25% of current emissions.
In his article, Zhang points to a number of challenges that could justify the lower level of clean-energy capacity additions that he is proposing, including the lack of a robust pricing mechanism for electricity storage, the need for better coordination of policies on the energy transition, as well as managing the land and marine area requirements for large new energy projects.
Still, dialling back the additions of solar and wind, as well as the associated battery storage, would be a cold shower to China’s economy, as these clean energy sectors have become a key source of economic growth.
Moreover, massive recent investments in manufacturing capacity in these sectors will only be utilised and pay off with continued growth in the demand for clean energy equipment.
The lower level of ambition of the government is also reflected in official targets for this year. The environmental ministry recently set a target to reduce carbon intensity – the level of emissions per unit of GDP – by 3.9% in 2024.
This target, if met, is an increase over the past three years when carbon intensity improved by only 1.5% per year on average. Yet, given that the target for GDP growth is “around 5%”, the carbon intensity target allows emissions to increase by more than 1%.
After rapid emission increases in 2021 to 2023, China is already severely off track for its 2025 and 2030 carbon intensity targets – and the annual targets for 2024 fail to close this gap.
Instead, it is exactly the required annual average that would have been needed every year to meet the 14th five-year plan target of 18%. As such, it avoids the existing shortfall from getting wider, but does nothing to make up for slow progress to date. The NDRC set a less ambitious target of reducing “fossil energy intensity” by 2.5% in 2024, which allows emissions to increase by more than 2%.
Zhang Jianhua also argued that clean energy should cover 70% of energy consumption growth in 2026-30, a target that is consistent with a slowdown in clean energy additions.
This would mean that 30% of energy consumption growth would still be covered by increasing the use of fossil fuels – and, therefore, CO2 emissions would also continue to increase.
Continued emissions growth would imply a major risk of missing China’s 2030 carbon intensity commitment – which is part of its international climate pledge under the Paris Agreement – as there is no space for energy-sector CO2 emissions to increase from 2023 to 2030 under the commitment, assuming average GDP growth of 5% or less.
China’s pledge, therefore, depends on clean energy growth continuing to significantly exceed the central government’s targets – or those targets being ratcheted up.
About the data
Data for the analysis was compiled from the National Bureau of Statistics of China, National Energy Administration of China, China Electricity Council and China Customs official data releases, and from WIND Information, an industry data provider.
Power sector coal consumption was estimated based on power generation from coal and the average heat rate of coal-fired power plants during each month, to avoid the issue with official coal consumption numbers affecting recent data. Power generation from coal was calculated from total thermal power generation and the reported capacity and utilisation hours of power plants firing coal, gas and biomass, to obtain the fuel mix of thermal power generation.
When data was available from multiple sources, different sources were cross-referenced and official sources used when possible, adjusting total consumption to match the consumption growth and changes in the energy mix reported by the National Bureau of Statistics.
The data for the first quarter of 2024 was scaled to match the reported year-on-year growth rates for the whole quarter in preliminary official data from the National Bureau of Statistics. The conclusion that emissions fell in March holds both with and without this adjustment.
CO2 emissions estimates are based on National Bureau of Statistics default calorific values of fuels and emissions factors from China’s latest national greenhouse gas emissions inventory, for the year 2018. Cement CO2 emissions factor is based on annual estimates up to 2023.
For oil consumption, apparent consumption is calculated from refinery throughput, with net exports of oil products subtracted.
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Analysis: Monthly drop hints that China’s CO2 emissions may have peaked in 2023
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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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