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China’s carbon dioxide (CO2) emissions stayed at, or just below, last year’s levels in the third quarter of 2024, after a fall in the second quarter.

The new analysis for Carbon Brief, based on official figures and commercial data, leaves open the possibility that China’s emissions could fall this year.

However, recent record-high temperatures caused emissions to go up in September and new government stimulus measures mean there is now greater uncertainty over the country’s emissions trajectory.

Heatwaves through much of August and September caused a major increase in electricity demand for air conditioning, which, combined with weak hydropower output, meant a 2% increase in coal-fired power generation and a 13% rise for gas-fired power in the third quarter, despite wind and solar growth continuing to break records.

The increase in emissions in the power sector was offset by falling emissions from steel, cement and oil use, plus stagnating gas demand outside the power sector, meaning China’s CO2 output in the third quarter was flat or slightly declined, relative to a year earlier.

Other key findings from the analysis include:

  • Solar generation rose 44% in the third quarter of the year and wind by 24%, with both continuing to see record-breaking additions of new capacity.
  • Hydro generation was up 11% compared with last year’s drought-affected figures, but remained short of expected output. Nuclear power was up 4%.
  • Oil demand fell by around 2%, due to falling construction activity, the rise of electric vehicles (EVs) and natural gas (LNG) trucks, as well as weak consumer spending.
  • Emissions from steel fell by 3% and cement by 12% in the third quarter, as both sectors continued to see the effect of falling construction activity.
  • The coal-to-chemicals industry received renewed political backing and coal consumption in the sector has risen by nearly a fifth in the year to date.

Emissions would need to fall by at least 2% in the last three months of the year, for China’s annual total to drop from 2023 levels. This outcome is supported by the ongoing slowdown in industrial power demand growth and the end of the air-conditioning season.

However, new economic stimulus plans announced in late September with no apparent emphasis on emissions, add uncertainty to this outlook.

In any case, China will remain off track against its 2025 “carbon intensity” target, which requires emissions cuts of at least 2% in 2024 and 2025, after rapid rises in 2020-23.

Looking further ahead, policymakers recently provided new indications of the country’s plans for peaking and reducing emissions, signalling a gradual and cautious approach which falls short of what would be needed to align with the goals of the Paris Agreement.

But, if the country’s rapid clean energy growth is sustained, it has the potential to deliver emission reductions more swiftly.

Clean-energy expansion met all power-demand growth over summer

Defying predictions of slowing growth, China’s electricity demand increased by 7.2% year-on-year in the third quarter of 2024, up from an already rapid 6.9% in the second quarter.

The make-up of growth changed, however. Some 60% of the increase in demand came from the residential and services sectors, with household demand up by a blistering 15%.

Industrial power-demand growth continued to slow down, increasing by 4.6% in July–September, down from 5.9% in the second quarter.

At the same time, solar power generation increased by 44% year-on-year and wind power generation by 24%. Hydropower grew 11%, despite falling short of average utilisation, and nuclear power generation growth was muted at 4% due to few new reactors being commissioned.

The rapid rise of electricity demand outpaced these increases from low-carbon sources, with the gap between demand and rising clean supply being met by a 2% increase in coal-fired power generation and a 13% rise for gas-fired power, as shown in the figure below.

This caused a 3% increase in CO2 emissions from the sector in the third quarter of the year.

Year-on-year change in China’s monthly electricity generation by source, terawatt hours, 2016-2024.
Year-on-year change in China’s monthly electricity generation by source, terawatt hours, 2016-2024. Source: Wind and solar output, and thermal power breakdown by fuel, calculated from capacity and utilisation reported by China Electricity Council through Wind Financial Terminal; total generation from thermal power and generation from other sources taken from National Bureau of Statistics monthly releases.

However, looking at the whole summer period, whether taken as May-September or June-August, clean-energy expansion covered all of electricity demand growth.

This year, August and September were hotter than last year, resulting in rapid growth in power demand for air conditioning. Last year, in contrast, June and July were hotter.

Thermal power generation from coal and gas fell overall during the summer period, despite the rapid increase in residential power demand, with a 7% drop in June, 5% drop in July, a 4% increase in August and a 9% increase in September. Growth rates during individual months are heavily affected by which months the worst heatwaves fall on.

In terms of newly built generating capacity, solar continued to break last year’s records, with 163 gigawatts (GW) added in the first nine months of 2024. This is equal to the combined total capacity in Germany, Spain, Italy and France, the four EU countries with the most solar capacity. China’s solar capacity additions in the third quarter were up 22% year-on-year, as shown in the figure below.

Newly added solar and wind power capacity from the beginning of each year, cumulative by month.
Newly added solar and wind power capacity from the beginning of each year, cumulative by month. Source: National Energy Administration monthly releases.

The growth in China’s solar power output this year alone is likely to equal the total power generation of Australia or Vietnam in 2023, based on growth rates during the first nine months of the year.

Wind power additions accelerated as well, with 38GW added in the year to September, up 10% year-on-year and exceeding the total wind power capacity in the UK of 30GW.

China’s State Council approved 11 new nuclear reactors for construction in one go in August. The total power generating capacity of the approved projects is about 13GW. With 10 reactors approved in both 2022 and 2023 – and now 11 in 2024 – the next batch of nuclear power capacity is getting off the ground and adding to China’s clean-energy growth.

Hydropower capacity only increased 2% year-on-year, implying that most of the 11% third-quarter increase in generation was due to a recovery in capacity utilisation.

In response to severe droughts, utilisation had fallen to its lowest level in more than a decade in 2022, and recovered only partially in 2023, so this year’s recovery was expected and is closer to expected average hydropower generation.

China’s approvals of new coal power plant projects plummeted by 80% in the first half of 2024. Just 9GW of new capacity was approved, down from 52GW in the first half of last year. However, according to the Polaris Network, an energy sector news and data provider, eight large coal power projects were approved in the third quarter, likely representing an uptick in the rate of approvals compared with the first half of the year.

Construction and oil demand slowdown continued to pull down total emissions

While power sector emissions saw a small amount of growth in the third quarter of 2024, the ongoing contraction in construction volumes pulled down total emissions.

As a result, CO2 emissions stayed flat in the third quarter of 2024, at or just below the levels seen in the same period a year earlier, as shown in the figure below.

Year-on-year change in China’s quarterly CO2 emissions from fossil fuels and cement, million tonnes of CO2.
Year-on-year change in China’s quarterly CO2 emissions from fossil fuels and cement, million tonnes of CO2. Emissions are estimated from National Bureau of Statistics data on production of different fuels and cement, China Customs data on imports and exports and WIND Information data on changes in inventories, applying emissions factors from China’s latest national greenhouse gas emissions inventory and annual emissions factors per tonne of cement production until 2023. Sector breakdown of coal consumption is estimated using coal consumption data from WIND Information and electricity data from the National Energy Administration.

Digging deeper into the construction-led decline in emissions outside the power sector, steel output fell 9% and cement 12%, as real estate investment contracted 10% in the third quarter, maintaining the same rate as in the first half-year.

This translated into an 11% (24m tonnes of CO2, MtCO2) reduction in CO2 emissions from cement compared with the same period in 2023, shown in the figure below.

Steel emissions only fell by 3% (13MtCO2), despite the 9% fall in steel production. The reason is that the brunt of the drop in demand was borne by electric arc steelmakers rather than the coal-based steel plants with a much higher emission intensity.

The sector lacks the incentive to prioritise electric arc furnaces, which use recycled scrap and have much lower emissions. In theory, this could be encouraged by the inclusion of steel in China’s emissions trading system.

However, if the sector is treated in the same way as power, with separate benchmarks for coal-based and electric steelmaking, it will not create incentives to switch to electricity.

As one step towards structural change in the sector, the industry ministry issued a policy suspending all permitting of new steelmaking capacity, turning a de-facto stop to new permits – observed since the beginning of the year – into a formal moratorium. Until last year, the sector had been investing heavily in new coal-based steel capacity.

Change in CO2 emissions in the third quarter of 2024 relative to the same period in 2023, broken down by sector and fuel, millions of tonnes.
Change in CO2 emissions in the third quarter of 2024 relative to the same period in 2023, broken down by sector and fuel, millions of tonnes. Emissions are estimated from National Bureau of Statistics data on production of different fuels and cement, China Customs data on imports and exports and WIND Information data on changes in inventories, applying emissions factors from China’s latest national greenhouse gas emissions inventory and annual emissions factors per tonne of cement production until 2023. Sector breakdown of coal consumption is estimated using coal consumption data from WIND Information and electricity data from the National Energy Administration.

The other major area where emissions fell is oil consumption, which saw a 2% (13MtCO2) reduction in oil-related CO2 emissions in the third quarter of the year, also shown in the figure above. This is based on numbers from the National Bureau of Statistics.

The reduction in oil demand and related CO2 emissions may have been even steeper. The supply of oil products, measured as refinery throughput net of imports and exports, fell much more sharply. Based on this measure, CO2 from burning oil fell 10% (63MtCO2) in the third quarter, meaning that China’s CO2 emissions overall would have fallen by 2%.

The much more modest drop reported by the statistics agency could reflect the tendency of China’s statistical reporting to smooth downturns and upticks.

Another possible explanation is that refineries had previously been producing more than was being consumed, and have now had to cut output to reduce inventories.

Regardless of the magnitude of the drop, it is possible to identify the drivers of falling oil consumption. The fall in construction volumes is a major factor, as a significant share of diesel is used at construction sites and for transporting building materials.

The increase in the share of EVs is eating into petrol demand. Demand was also driven down by household spending, which remained weak until picking up in October in response to expectations of government stimulus.

The increasing share of trucks running on LNG also contributed to the fall in diesel demand. LNG truck sales accounted for about 20% of total truck sales in the nine months to March 2024, but weak overall gas demand growth indicates that this had a limited impact.

Gas consumption growth slowed down to 3% in the third quarter, from 10% in the first half of the year. Growth took place entirely in the power sector, with demand from other sectors stagnating, likely due to weak industrial demand.

After an increase in emissions in January-February, falling emissions in March-August and an increase in September, emissions would need to fall by at least 2% in the last three months of the year, for China’s annual total to drop from 2023 levels.

There is a good chance this will happen, due to an ongoing slowdown in industrial power demand growth and the end of the air conditioning season. But, even then, China would remain off track against its 2025 carbon intensity target, which requires emissions to fall by at least 2% in both 2024 and 2025, after rapid increases from 2020 to 2023.

The fundamental reason why emissions have not fallen faster – and may not have fallen at all in the third quarter – is that energy consumption growth this year continues to be much faster than historical trends.

Total energy consumption – including, but not limited to electricity consumption – grew 5.0% in the third quarter, faster than GDP, which gained 4.6%.

Until the Covid-19 pandemic, China’s energy demand growth had been much slower than GDP growth, implying falling energy intensity of the economy.

The post-Covid economic policy focused on manufacturing appears to have reversed this trend.

Coal-to-chemicals industry received new political backing

One additional wildcard in the outlook for China’s CO2 emissions is the coal-to-chemicals industry. The sector turns domestic coal into replacements for imported oil and gas, albeit with a far higher carbon footprint.

A recent policy from the National Development and Reform Commission, China’s powerful planning agency, called for ”accelerating” the development of the coal-to-chemical industry, including “speeding up the construction of strategic bases for coal-to-oil and coal-to-gas production”.

The past weeks after the issuance of the new policy have seen construction starts of a major coal-to-oil project in Shanxi, a coal-to-chemicals park in Sha’anxi and approval of a similar project in Xinjiang.

The coal-to-chemicals industry is expected to use more than 7% of all coal consumed in China in 2024, according to China Futures Research, a consultancy.

Coal consumption by the chemicals industry increased 18% in the first eight months of 2024, after a 9% increase in 2023, based on data from Wind Financial Terminal. This increase in coal consumption for coal-to-chemicals contributed two thirds of the 0.9% increase in total fossil CO2 emissions during the January to August period.

Coal consumption growth in the sector slowed down to 5% in July-August, however, and output of chemical products continued to slow in September. This smaller contribution to growth in CO2 emissions is shown in the graph above (“chemical industry”).

The recent rise in oil and gas prices, together with efforts to increase China’s domestic coal production and drive down domestic coal prices, have provided a major boost to the coal chemicals sector, which has a high sensitivity to both oil and coal prices.

Coal-to-chemicals is the sector where China’s policy priorities of energy security and emission reductions are most directly at odds.

Economic stimulus adds uncertainty to emissions outlook

After economic data indicated continuing slowdown and shortfall against GDP growth targets over the summer, expectations of a stimulus package built up.

The government responded in late September with a set of announcements, pledging various stimulus measures. The measures were focused on financial markets, but also included a commitment to “stabilise” the housing market.

The size of the stimulus package is not very large by China’s standards, and further details have disappointed those who hoped for a more radical policy turnaround. Yet, the package is clearly thought-through and coordinated, offering insights into how China’s top policymakers are planning to address the economic headwinds.

Direct income transfers of government money to households, which have been a hot topic for the past couple of years, are now going to be tried out.

Efforts to boost household spending, instead of the energy-intensive manufacturing and construction that has been the focus of previous rounds of government stimulus, would enable China to grow in a much less energy- and carbon-intensive way.

However, the sums allocated to income transfers are very small in relation to the size of the whole package. Much more money will be spent on subsidies to car and white-goods purchases. This will free up household cash for other types of spending, but it also directs household spending in the most energy-intensive direction.

Most of the stimulus is directed through the traditional routes of local government borrowing and bank lending, which tend to go into industrial and infrastructure projects.

There is no explicit climate-related emphasis to this stimulus. Quite a bit of it is likely to flow to clean energy-related investments, simply because those have been so dominant in China’s investment flows recently, but there is no further push in that direction.

Policymakers do not see an ‘early’ peak

While the rapid clean-energy growth points to the possibility of China’s emissions peaking imminently, policymakers are still setting an expectation that emissions will increase until the end of the decade and plateau or fall very gradually thereafter.

In August, China’s National Energy Administration played down the possibility of the country’s emissions having already peaked, in response to a question from a reporter referencing analyses suggesting this was possible.

The NEA department head who responded to the question emphasised that the timeline for peaking the country’s emissions – “before 2030” – has already been set by the top leadership, implying that the NEA has no mandate to change it.

The Central Committee of the Communist Party – one of the country’s highest leadership groups – reaffirmed that the aim is to “establish a falling trend” in emissions by 2035.

An earlier State Council plan said that China would focus on controlling total CO2 emissions, rather than emissions intensity, after the emission peak has been reached, and indicated that this would not happen in the 2026-30 period.

A very gradual approach to peaking emissions and reducing them after the peak, leaving more substantial emission reductions to later decades, is permissible under China’s current commitments under the Paris Agreement.

However, such a pathway would see the country use up 90% of the global emission budget for 1.5C. In scenarios that limit warming to 1.5C, China’s emissions are cut to at least 30% below 2023 levels by 2035. And recent International Energy Agency (IEA) analysis found that emerging markets such as China would need to cut emissions to 35-65% below 2022 levels by 2035, to align with the global pledges made at COP28 or national net-zero targets.

In contrast with the cautious approach telegraphed by Chinese policymakers, maintaining the rate of clean energy additions and electrification achieved in recent years could deliver a 30% reduction in CO2 emissions from fossil fuels by 2035, relative to 2023 levels.

Similarly, the IEA’s latest World Energy Outlook found clean-energy growth would help cut China’s CO2 emissions to 24% below 2023 levels by 2035, based on current policy settings. This reduction would increase to 45% by 2035 if China met its announced ambitions and targets, the IEA said.

China’s upcoming nationally determined contribution (NDC), due to be submitted to the UN under the Paris Agreement by February 2025, is expected to provide more clarity on which emissions pathway the policymakers are pursuing.

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.

Wind and solar output, and thermal power breakdown by fuel, was calculated by multiplying power generating capacity at the end of each month by monthly utilisation, using data reported by China Electricity Council through Wind Financial Terminal.

Total generation from thermal power and generation from hydropower and nuclear power was taken from National Bureau of Statistics monthly releases.

Monthly utilisation data was not available for biomass, so the annual average of 52% for 2023 was applied. 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.

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 for the first quarter, the first half and the first three quarters of the year. The effect of the adjustments is less than 1% for total emissions, with unadjusted numbers showing a 1% reduction in emissions in the third quarter.

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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Carbon Brief Quiz 2026: Picture Round 1 and 2

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Landmark deal to share Chile’s lithium windfall fractures Indigenous communities

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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 man wearing a black T-shirt and a hat stands in front of a tree
Rudecindo Espíndola stands in a green oasis near the village of Toconao in the Atacama desert (Photo: Francisco Parra)

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”.

    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.

    A flamingo at the Chaxa Lagoon in the Atacama salt flat (Photo: REUTERS/Cristian Rudolffi)

    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.

    Codelco’s chairman Maximo Pacheco (Photo: REUTERS/Rodrigo Garrido)

    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.

    A stone arch welcomes visitors to the village of Peine, one of the closest settlements to lithium mining sites in the Atacama salt flat (Photo: REUTERS/Cristian Rudolffi)

    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.

    A man in a white shirt and glasses stands in front of a stone wall
    Sergio Cubillos, president of the Peine community, was one of the Indigenous representatives in the negotiations with Codelco and SQM (Photo credit: Formando Rutas/ Daniela Carvajal)

    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.

      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)

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      Landmark deal to share Chile’s lithium windfall fractures Indigenous communities

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      Roadmap launched to restart deadlocked UN plastics treaty talks

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      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.

        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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