The amount of foreign aid the UK spends on climate action reached a record high of around £3bn last year, according to government figures obtained by Carbon Brief.
However, Carbon Brief analysis shows that more than £500m of this sum comes from controversial changes in the way the UK calculates its climate aid for developing countries.
By leaning on private-sector investment and including existing aid projects in the total, the government is able to inflate its figures without providing as much new climate funding.
Including this money puts the UK on track for its five-year goal of providing £11.6bn by 2026 to support climate action in developing countries, even as it cuts the overall aid budget.
Climate aid – which is often referred to as “international climate finance” (ICF) – will likely still need to rise above £3bn in 2025, if the UK is to achieve its target over the next year.
The new data, released to Carbon Brief via freedom-of-information (FOI) requests, covers provisional 2024-25 spending across the three major government departments that fund climate projects overseas.
This analysis is the latest in a series of articles by Carbon Brief documenting the UK’s ICF contributions since 2011.
Key findings from the most recent year include:
- By far the largest payment last year was a £482.3m contribution to boost British International Investment’s (BII) private-sector interests in developing countries.
- Ethiopia was the largest recipient of bilateral climate finance (£92.3m). Other major recipients include Pakistan (£55.8m), Afghanistan (£43.7m) and Sudan (£41.1m).
- The biggest single project to receive funding was a World Bank initiative helping developing countries to sell carbon offsets, which received £153.9m.
- Large portions of climate finance also went to the Green Climate Fund (£227m) and the Global Environment Facility (£64.8m).
- Without the government’s changes, which mimic the looser accounting used by some other countries, climate finance would have needed to increase 78% this year. With the changes, climate finance only has to increase by 2%.
- Around £1.3bn – nearly a sixth of the UK’s ICF over the past four years – can be linked to the government’s accounting changes.
Target achieved?
After it was elected last year, Labour confirmed that it would honour the previous government’s pledge to provide £11.6bn of climate finance over the five-year period ending in 2025-26.
This money is the UK’s contribution, under the Paris Agreement, to help developing countries cut emissions and protect themselves from the threat of climate change.
Since the goal was first announced in 2019, experts have regularly voiced doubts that it can be achieved due to major cuts to the foreign-aid budget by successive governments.
More uncertainty followed the announcement in February that the Labour government would cut aid further – from 0.5% of gross national income to 0.3% – ostensibly to fund defence spending. (The government insisted that the remaining aid would “prioritise” climate.)
Despite these changes and uncertainty, the figures provided to Carbon Brief via FOI reveal that the UK is, in fact, on track to meet its £11.6bn target.
Climate-finance spending reached a record high of just under £3bn in the financial year 2024-25, more than £700m higher than the previous year.
(Note that these figures are “provisional” and subject to revision. Due to methodology changes, the final figures for UK climate finance in 2023-24 were much higher than those provided to Carbon Brief via a previous FOI. See the Methodology for more details.)
Assuming the provisional figures for 2024-25 are accurate, the UK would still need to raise its climate finance to £3.1bn in 2025-26 in order to meet the £11.6bn target, as shown in the figure below.
This level of climate finance would need to be maintained, even as the government scales back its overall aid budget in 2025.
When asked at a recent committee hearing whether there would be any new money for the £11.6bn goal, international development minister Baroness Chapman spoke frankly:
“I think the search for new money at the moment is going to be pretty fruitless…Is there going to be any new money for climate in a world where we have just gone from 0.5% to 0.3%? I think you can probably work that out.”
Instead of new funding, the upward trajectory of climate aid has been largely driven by the UK expanding what it counts towards the total. These changes were initially made under the Conservatives, but Labour has retained them.
By relabelling existing funding for multilateral development banks (MDBs), humanitarian aid and private-sector investments via BII as “climate finance”, the UK has inflated the figures without allocating genuinely new funds, making the £11.6bn goal easier to achieve.
Based on data acquired through successive FOIs, Carbon Brief estimates that £528m, or 18% of climate finance provided in 2024-25, can be linked to these accounting changes.
Since 2021, the running total of climate finance resulting from these changes is more than £1.3bn, Carbon Brief analysis suggests, amounting to nearly a sixth of spending to date.
Experts have pointed out that this amounts to a real-world cut in climate aid, as it means less additional funding than was originally pledged.
Without the accounting changes, UK climate finance would only have reached around £2.5bn last year, as the chart below shows.
To achieve the £11.6bn goal from this position, climate finance would have needed to increase by 78% this year, nearly doubling from a year earlier. In comparison, the accounting changes mean it only has to increase by 2%.
The government says that its accounting changes merely brought it in line with other countries. A Foreign, Commonwealth and Development Office (FCDO) spokesperson tells Carbon Brief:
“We will continue to account for all of our international climate finance using internationally agreed OECD guidelines. Meeting our £11.6bn commitment by March 2026 remains our ambition and it is only right that we accurately reflect the funding going to support this aim.”
In response, NGOs and aid experts have argued the UK should have retained its former position as a leader in climate-finance accounting standards, rather than aligning with the looser methodologies used by many others, such as Germany and France.
Moreover, the £11.6bn goal was meant to be a doubling of the government’s previous £5.8bn target, which was based on the original accounting methodology. If the previous target had also been based on a broader definition of climate aid, then the current £11.6bn target would have needed to be higher to represent a doubling.
As the UK nears the end of its third five-year ICF target, it is expected to announce another goal covering the period 2026-27 onwards. This will feed into the $300bn global climate finance target that nations agreed at the COP29 climate summit last year.
Amid the aid cuts, climate NGOs say that the accounting changes should be reversed and the UK should turn to “polluter-pays” measures to generate the required public funds. Catherine Pettengell, executive director of Climate Action Network UK, tells Carbon Brief:
“Our main concern is that we now have the spending review, but there is still no clarity – or vision – on current or future climate finance from the UK.”
Big investments
The UK is now leaning heavily on private-sector investments to achieve its climate-finance goals, according to Carbon Brief’s analysis.
By far the largest climate-finance input last year was a £482m contribution to the UK’s development finance institution, BII.
This is the biggest climate-finance contribution the UK has ever made in a single year, according to the data that Carbon Brief has collected in recent years.
It also amounted to nearly a fifth of the total climate finance last year and almost three times more than the UK has ever channelled into BII before.
BII is a publicly owned, for-profit company that largely supports itself with its £7.3bn portfolio of investments in developing countries, but it also receives regular injections of aid money.
The surge in BII climate finance last year can be attributed to two things.
First, the government now counts more of its BII investments as climate finance than it did previously, following the accounting changes. It argues that this more accurately reflects BII’s expanding focus on investing in clean-energy projects overseas.
The government also decided to invest an extra £400m – largely from underspending on housing asylum seekers in the UK – into BII, bringing its total budget for the year up to £881m.
Prior to these changes, the government expected BII climate finance to be worth £126m in 2024-25, according to forecasts previously obtained by Carbon Brief.
It has, therefore, added an extra £356m to BII’s contribution. Carbon Brief estimates that £218m of this can be attributed to the accounting changes, rather than the increase in funding. (See: Methodology.)
Critics argue that BII, which focuses on loans and equity finance rather than grants, is not capable of supporting climate action in the poorest and most climate-vulnerable nations. (Separately, it has also been criticised for continuing to support fossil-fuel developments.)
Last week’s spending review provided the FCDO with at least £300m annually out to 2029-30 for BII and similar organisations, even as billions are cut from its aid budget. In this context, Ian Mitchell, a senior policy fellow at the Center for Global Development, tells Carbon Brief:
“BII looks set to become the government’s main climate-finance vehicle. Though, whether this is compatible with its historic focus on Africa and the poorest countries remains to be seen.”
Meanwhile, the biggest single project to receive funding from the UK last year was the World Bank initiative titled: “Scaling Climate Action by Lowering Emissions (SCALE).” The government provided it with an initial contribution of £154m.
SCALE aims to help around 20 countries generate carbon credits that can be sold by companies on the voluntary offset market or internationally via Article 6 carbon markets.
According to the UK government, one aim is to “maximise the mobilisation of additional finance through the sale of carbon credits”.
Selling carbon offsets has long been touted as a way to channel climate finance into developing countries, but the practice has faced intense scrutiny and accusations of “greenwashing” in recent years.
Accounting changes
Other large portions of funding in the UK’s 2024-25 climate-finance budget can also be attributed to changes in the government’s accounting methodology.
For example, as of 2023, the UK started counting portions of its “core” payments into MDBs as climate finance, significantly inflating its climate-aid total.
This money is used by the banks to issue loans and – to a lesser extent – grants for projects in developing countries. While many of these projects will be climate-related, relabelling some of the UK’s contributions as “climate finance” does not result in any additional funds being distributed.
In 2024-25, this relabelling accounted for at least £103m of the total climate finance, including £84m for the African Development Bank (AfDB), £11m for the Asian Development Bank (ADB) and £8m for the Caribbean Development Bank (CDB) Special Development Fund.
In terms of bilateral aid from the UK, several of the projects with the largest share of climate finance last year were in nations facing war, famine and natural disasters.
This can partly be attributed to accounting changes that mean 30% of all humanitarian funding in the most climate-vulnerable countries – including Afghanistan, Sudan and Somalia – is now automatically counted as climate finance within government accounting.
Some of these nations have, therefore, risen to be top recipients of bilateral “climate aid” from the UK – as shown in the figure below – through programmes such as Sudan Humanitarian Preparedness and Response.
(Such programmes tend to involve the UK supporting NGOs rather than providing funds to governments. For example, FCDO has two “flagship” humanitarian programmes in Afghanistan – both with an ICF component – but does not provide funds to the Taliban.)
This accounting change was viewed by the previous Conservative government as a way to avoid a “trade-off” between climate and humanitarian projects, amid aid budget cuts.
As the map above shows, Ethiopia remained the largest recipient of UK climate finance via single-country projects last year, with £92.3m in total. This has been the case for more than a decade.
The finance largely comes from two programmes, which aim to improve climate resilience in regions of Ethiopia that have been afflicted by drought and flooding. The country has faced years of regional conflicts that have been exacerbated by climate shocks.
Rather than directly supporting individual projects in individual countries, most UK climate finance is distributed to international bodies and initiatives that serve many countries.
Some of the biggest payments are to well-established international grant providers. These include £227m for the Green Climate Fund, £64m for the Global Environment Facility and £26m for the Global Biodiversity Framework Fund (GBFF).
Other large payments went to long-running initiatives to help “build financial markets and institutions” in Africa and “mobilise private investment in infrastructure” in developing countries.
Methodology
This analysis is the latest part of Carbon Brief’s efforts to assess the UK’s ICF contributions by financial year. Detailed data underpinning these contributions is not released publicly, but is required to track progress towards the UK’s ICF targets.
Total ICF figures for the years 2011-12 to 2023-24 are based on summary public statements made by the government. Ministers have quoted different figures on different occasions, but Carbon Brief is using a March statement from FCDO minister Stephen Doughty for the 2011-12 to 2023-24 period, as this is understood to be the most up-to-date.
The figures for 2024-25 are based on FOI responses from the three major departments responsible for the UK’s overseas climate-related aid projects: FCDO, the Department for Energy Security and Net Zero (DESNZ) and the Department for Environment Food and Rural Affairs (Defra). Around 80% of climate finance provided by the UK is overseen by the FCDO.
All three of these departments provided the data for 2024-25, stressing that it is provisional. This means it is “subject to year-end accounting and audit adjustments, which are still being processed”. Carbon Brief also received the final (i.e. non-provisional) figures for 2023-24, having been given the provisional figures last year.
(The provisional figures released to Carbon Brief in 2023-24 last year were significantly lower than the final figures – amounting to £1.8bn rather than £2.3bn. This is almost entirely due to the provisional data not factoring in most of the accounting methodology changes described in this article. The provisional figures for 2024-25 appear to have factored in these methodology changes already.)
The Department for Science, Innovation and Technology (DSIT) also oversees a small number of ICF projects overseas. Unlike the other departments, DSIT rejected Carbon Brief’s FOI requests. Carbon Brief understands that its projects were worth £42m in 2023-24, roughly 1% of the total. For the sake of this analysis, Carbon Brief assumes that this amount remained the same in 2024-25.
Carbon Brief relied on previous FOI results to calculate how much of the UK’s climate finance derives from accounting changes in recent years:
- BII: According to an internal document, under its old methodology, the government originally forecast 30% of BII core capital to be climate finance in 2024-25, amounting to £126m. The final figure provided to Carbon Brief, which is also based on a higher core capital figure, is £482m. If the government had counted 30% of the higher core capital contribution as ICF, under its old methodology, the total would be £264.3. This suggests the remaining £218m of the £482m could be attributed to the methodology changes.
- MDBs: The FOI results provided to Carbon Brief show contributions to the AfDB, ADB and CDB amounting to £103m.
- Humanitarian projects: Carbon Brief has used the estimates from an internal document showing how much climate finance the government expects humanitarian aid projects to provide, including £69m in 2024-25. This may be an underestimate, as some of the projects listed in this document have higher ICF totals in the new FOI data released to Carbon Brief.
- “Scrubbed” projects: The government also asked civil servants to reappraise the existing aid portfolio in order to identify any extra ICF that could be counted. Carbon Brief has obtained an incomplete list of these projects, which states that £138m was added to the 2024-25 total in this way.
Together, these changes add up to £528m. The actual figure may be higher, as these are provisional figures.
Carbon Brief’s estimate of the cumulative impact of the accounting changes by 2024-25 – some £1.3bn – aligns with an estimate of £1.72bn for the entire five-year period out to 2025-26, made by the Independent Commission for Aid Impact (ICAI). The final figure may be higher, as ICAI’s calculation was based on government documents that did not, for example, include the increased capital contribution to BII in 2024-25.
The post Analysis: UK climate aid to hit £11.6bn goal – but only due to accounting rule change appeared first on Carbon Brief.
Analysis: UK climate aid to hit £11.6bn goal – but only due to accounting rule change
Climate Change
DeBriefed 29 May 2026: Europe’s ‘mind-boggling’ May | Indian heat deaths | Nigeria’s solar mini-grids
Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.
This week
UK, Europe and India battle heatwaves
‘MIND-BOGGLING’ MAY: The UK and continental Europe have set “mind-boggingly crazy” temperature records for May amid a deadly heatwave, reported the Financial Times. According to the Associated Press, the UK “smashed a century-old temperature record for the second time in 24 hours on Tuesday”. The newswire added that records “also fell in France, where temperatures reached 36C on Monday in the country’s south-west”. On Wednesday, Portugal hit a record May temperature of 40.3C, said BBC News.
‘BRUTAL REMINDER’: In parts of Italy, the heatwave triggered blackouts, reported Reuters. The heatwave has also been linked to more than a dozen deaths in the UK and France, including from people drowning and suffering heat-related deaths while competing in sporting events, said ABC News. Simon Stiell, the executive secretary of UN Climate Change, said the intense heatwaves were a “brutal reminder” of the cost of global warming, reported Politico. Carbon Brief has in-depth coverage of the record-shattering heatwave.
INDIA’S DEADLY HEAT: In the southern Indian states of Andhra Pradesh and Telangana, more than 100 people died within three days following an intense heatwave, reported the Khaleej Times. The publication noted that authorities urged people to stay indoors and avoid direct exposure to the heat. Meanwhile, some parts of India are “grappling with power cuts as record-breaking heat has pushed electricity demand to an all-time high”, reported Reuters.
Around the world
- CRUDE DIPS: The International Energy Agency (IEA) said global investments in oil projects will fall below $500bn in 2026, continuing a three-year decline, reported Bloomberg. Carbon Brief’s analysis of the data shows the US’s “data-centre boom” means it is now investing more in fossil-fuel power than China.
- DODGING NET-ZERO: The world’s biggest miner, Australian giant BHP, has backtracked on climate action by halting or delaying projects to cut “vast” amounts of emissions, according to a Guardian investigation.
- SOLAR SLIP: China’s new solar installations dropped for a fourth straight month, reflecting weakening domestic demand, said Bloomberg.
- NO LOGGING: Deforestation in the Brazilian Amazon fell last year to its lowest level since 2019, according to a new report, said Agence France-Presse.
- EXECUTIVE ACTION: Puerto Rico’s governor announced a state of emergency to fight a surge in coastal erosion, citing the need to protect natural resources and vulnerable communities, reported the Associated Press.
Four million
The number of homes in the UK with air conditioning, double the figure from three years ago, reported the Guardian. There are 29m households in the UK.
Latest climate research
- Carbon Brief will soon be launching a new fortnightly newsletter focused on climate research. Sign up for free today.
- LGBTQ+ households in the US are “significantly more likely” to face energy poverty and insecurity than the general population | Energy Research & Social Science
- Global rice-paddy greenhouse gas emissions have doubled over the past six decades | Nature Food
- Vegetation greening and human-caused warming are the “main drivers” of a surge in flash floods over the last decade | Science Advances
(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Tuesday, Wednesday, Thursday and Friday.)
Captured
A Carbon Brief investigation has shed light on the impact of weather-related flooding on National Health Service (NHS) facilities across the UK. At least 67 NHS hospital wards, departments and other sites have been forced to temporarily close or relocate due to weather-related flooding. The chart above shows sites of weather-related flooding incidents at NHS facilities. The size of the circles indicates the number of incidents reported at each site.
Spotlight
How solar mini-grids can ‘help boost’ Nigeria’s economy
This week, Carbon Brief covers a new report on Nigeria’s solar mini-grid industry.
Amid the impact of the US-Iran war on the Nigerian economy, a new report has argued that solar-mini grids can help to reduce the country’s reliance on fossil fuels and create more than 200,000 jobs.
In Nigeria, Africa’s third-largest economy, the war has led to an increase in energy prices and a decrease in petrol consumption. Petrol is one of the country’s main sources of transport and household fuel. According to one estimate, prices have surged by up to 40% since the conflict commenced in February.
Although the Nigerian treasury has benefited from rising crude oil prices – the country is a major exporter of oil and gas – the impact has been most visible on the wider population.
Rising energy prices “have affected the purchasing power of workers”, Agnes Funmi Sessi, a labour union leader in Lagos, told Carbon Brief.
However, scaling the deployment of solar “mini-grids” could help the country move away from fossil fuels, stimulate rural economies and improve livelihoods, according to the new report authored by the thinktank, the Africa Policy Research Institute.
“We estimate that, by deploying over 10,000 mini-grids, the sector could create 212,688 direct full-time informal and productive-use jobs across the off-grid and under-grid market segments,” the report said.
A nascent industry
Solar “mini-grids” are small-scale, localised electricity generation and distribution systems powered by solar panels.
The report positioned Nigeria’s mini-grid sector as one of the fastest-growing in Africa, with the country having just 11 mini-grids in 2015 and 155 by 2024, along with at least 42 active developers.
Many of the companies within the sector are young and apply novel local techniques in their deployment of solar technology, the report said.
However, access to finance remains a huge barrier. According to the report, the sector may require up to $8bn to connect 35.4 million people to mini-grids.
“Most Nigerians want solar power in their homes, but it is a capital intensive business for vendors and customers,” Dr Ben Iheagwara, a renewable energy entrepreneur and policy analyst, told Carbon Brief.
The report urged the Nigerian government and its international partners to “attract private capital by de-risking investments and ensuring regulatory clarity and long-term planning”.
Other key recommendations for policymakers and stakeholders include investment in skills development and paying attention to the gender gap.
Powering rural communities
Many rural communities, which make up about 37% of the country, are disconnected from the national grid system, so often have to generate their own electricity through mini-grid systems.
According to Nigeria’s electricity regulator, NERC, a mini-grid is defined as a power generating system with an installed capacity of up to 10 megawatts.
A mini-grid can be powered by fossil fuels such as diesel or petrol, but solar power is now considered a cheaper and cleaner source.
With more than 80 million people lacking access to electricity in Nigeria, solar mini-grids are increasingly viewed as the lowest-cost electrification solution, the report said.
Watch, read, listen
MOVING FORWARD: The Energy Transition Show dug into electricity reform in South Africa, discussing the country’s coal legacy and the role of renewables.
ENERGY POVERTY: In an opinion article for Project Syndicate, executive director of the African Climate Foundation, Saliem Fakir, argued that the energy transition in emerging and developing economies is driven by economics and security rather than emissions targets.
VANISHING CITY: BBC News reported on a coastal community in Nigeria where the ocean has “already swallowed more than half of the town”.
Coming up
- 31 May: Colombia presidential elections
- 31 May-5 June: Global Environment Facility council meeting, Samarkand, Uzbekistan
- 2-5 June: The Venice Agreement for Peatlands workshop, Kisumu, Kenya
Pick of the jobs
- National Oceanography Centre, engagement assistant (external communications) | Salary: £28,254. Location: Southampton, UK
- Dangote Industries, decarbonisation specialist | Salary: Unknown. Location: Lagos, Nigeria
- City of New York, chief decarbonization officer | Salary: $261,469. Location: New York City
- Climate Central, writer and associate editor | Salary: $72,000-$75,000. Location: US (Remote)
DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.
This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.
The post DeBriefed 29 May 2026: Europe’s ‘mind-boggling’ May | Indian heat deaths | Nigeria’s solar mini-grids appeared first on Carbon Brief.
At the African Development Bank (AfDB) annual meetings this week, several African leaders called for investments in electricity infrastructure which go beyond lighting homes to powering economies.
Applauding the AfDB for its energy programmes like Mission 300 – which aims to provide electricity access to 300 million Africans by 2030 – the Central African Republic’s President Faustin-Archange Touadera said that without power supply “we will not be able to achieve development”.
Speaking alongside him, the Republic of Congo’s President Denis Sassou Nguesso echoed this, saying that “as we need to help our people to turn towards agriculture, to turn towards livestock rearing, we also need to provide power to them.”
As the Mission 300 initiative advances, attention is increasingly shifting from simply connecting households to ensuring that electricity access translates into economic opportunities and livelihoods. That shift is driving the launch of a new Centre of Excellence for Productive Use of Energy being developed under Mission 300 by the philanthropically funded Global Energy Alliance for People and Planet (GEAPP).
-
Kenya seeks regional coordination to build African mineral value chains
Kenyan President William Ruto is the latest African leader to announce an end to raw mineral exports as governments want to add more value to their resources -
Africa needs more than export bans to cash in on critical minerals, experts say
Restricting raw materials exports is well-intentioned but without other policies to foster domestic processing, they can backfire -
Africa records fastest-ever solar growth, as installations jump in 2025
Africa’s solar power installations have increased sharply, driven by utility-scale projects and privately financed rooftop and commercial systems
In an interview with Climate Home News, Carol Koech, GEAPP’s vice president for Africa, said the initiative is designed to ensure that electrification supports income generation, agriculture and local economic development rather than only basic household access.
Q: What is the Centre of Excellence for Productive Use of Energy aiming to achieve with Mission 300?
A: Mission 300 is increasingly being seen as a job platform and so the role of the Centre of Excellence in translating those electricity connections to jobs. So we want the centre to do four things. First, as a delivery engine, which enables countries to embed a cross-institutional advisor that supports the electrification components, but also other components that are happening in the country.
Second, we want the centre to be an innovation and strategy hub. Today, there’s really no place where you can go to find the state of the industry for productive use of energy across the globe, and we want to make the centre of excellence the place where you can go and get information about what technologies are available, where deployment is happening and how much is being deployed.
(Photo: Lighting Global/SunCulture/World Bank)
The third pillar is to coordinate and mobilise capital. We anticipate the centre coordinating internally within the ecosystem but also mobilising additional financing to help productivity. The last piece is how to scale businesses, enterprises and partnerships around this centre because we anticipate that as we grow this space, new industries will emerge and those industries will need to be supported.
Q: Why is productive use of energy becoming important under Mission 300?
A: Mission 300 gave us a bigger platform to demonstrate that energy is truly an enabler for economic development. It’s not sufficient to just provide a connection, but it is required that that connection truly translates to economic development for the communities that benefit.
We shouldn’t bring electricity and then start thinking about what people can do with it. We need to think about both at the same time and ensure electricity arrives together with the things that will make a difference in people’s lives. Historically, we’ve brought electricity and imagined a miracle would happen, but we know that hasn’t been the case.
The question is how to ensure universal access in the cheapest way while still transforming communities. Some mini-grids have been deployed in places where demand is extremely low, making them too expensive to sustain. But when mini-grids are paired with productive uses, the economics start to change. If businesses currently running on fossil fuel generators move to solar or renewable energy, operating costs fall and the business case for mini-grids becomes much stronger.
Q: How could this work in practice for agriculture and rural communities?
A: I’ll give you a practical example in our pilot country Zambia. Zambia has two programmes, they have the ASCENT programme for energy access and they also have the Zambia agribusiness and trade platform (ZATP). Some of the components of the ZATP programme – which is an agri-business program to help farmers to be productive – have a productive use component but don’t have an energy supply component. So we’re offering things like mills, processing facilities, irrigation and others. In some parts of Zambia, these productive use equipment has been supplied but has not been powered, so communities are not benefiting from that.
So the whole point is if we coordinate where the agribusiness programme is deployed together with where the energy access programme is deployed and layer those two programmes together in one place, then you could solve the energy access problem and solve productive use together and therefore have really meaningful outcomes for communities.
Q: How will the centre help both households and small businesses use electricity productively?
A: The question on whether we should electrify households or businesses is neither here nor there. We need to electrify all. The argument is really once we electrify businesses, the owners of those businesses will be able to pay what they need for their households as well as increase production for their businesses.
Electricity consumption is usually an indicator of economic development and by pushing productive use into households, especially where households are also smallholder farmers, the question becomes: how can electricity access translate to additional economic development for them? If you are connected onto a mini-grid, then you can actually use that connection to run irrigation, put in a dryer, or a cold storage system, whatever you require to improve your income but the fact that you have energy means that you can access productive use. Now, we need to ask ourselves how do these farmers or these households then get access to these appliances, because that’s another barrier.
Q&A: Will subsidy cuts for Chinese clean-tech exports hurt Africa’s solar boom?
The cost of these appliances is usually extremely high, and when you have programmes such as the ZATP running in Zambia, that’s already a public funding approach to making these appliances available and potentially reachable for farmers, either at household level, at farm level or at community level.
Q: How does this complement the already existing Mission 300 national energy compacts designed by countries?
A: Each of the national energy compacts have a productive use component, a pillar that talks about distributed renewable energy, productive use, and clean cooking. This is actually complementing the work of the countries, and this centre is like an available support, back office for countries to tap into as they implement their national energy compacts, if they have specific requirements and support for that pillar three.
So the advisers that will be embedded into countries, their role is to coordinate within country programs that are running where energy could make a difference. The advisers will be sourced from the country and so they will make sure that the donor money is coordinated to benefit the country fully. Their role will include going to ministries of agriculture or any related ministries and understanding where they are prioritising programmes that require electrification. In many cases, programmes and money have already been allocated, but this component is about how do we deploy it in a way that it actually truly brings a difference, so those advisers will do that.
Q: How will the centre address financing and private sector investment challenges?
A: What we’re really looking at is different financing mechanisms. In the past, we have provided subsidies and results-based financing to suppliers, distributors and manufacturers to help create markets for productive-use appliances. I see this as one mechanism the centre could use, but the bigger opportunity is aligning public funding across different programmes so that more of it can support productive uses, either through direct funding or subsidies.
Nigerians bet on solar as global oil shock hits wallets and power supplies
When it comes to private sector investment, the reality is that Africa’s energy sector still faces serious constraints. Most private investment has gone into power generation, particularly through independent power producers, and even then that has only been possible in places where the off-takers, usually utilities, are bankable.
To unlock more private capital, countries need the right policies, reforms and regulations, but even more importantly, utilities must become financially viable. If the off-taker is not bankable, then the project is not bankable.
Another major question is how to attract private investment into transmission infrastructure. There are different models being explored, but the reality is that public funding alone is not sufficient to achieve Mission 300, so finding new ways to mobilise private capital will be critical.
The post Q&A: How can African electricity access power jobs not just lightbulbs? appeared first on Climate Home News.
Q&A: How can African electricity access power jobs not just lightbulbs?
The “data-centre boom” is driving a surge in gas investment in the US, pushing its fossil-power spending ahead of China, according to the International Energy Agency (IEA).
A rapid expansion of data centres across the nation is at the heart of the US tech sector’s plans to continue “dominat[ing]” the global artificial intelligence (AI) industry.
High demand for electricity to power these data centres has led to companies rushing to build new gas-fired power plants across the country.
This trend, combined with “soaring” gas-turbine prices, drove a threefold increase in US gas‑power investment in 2025 – and the IEA expects this to continue throughout 2026.
As the chart below shows, Chinese investment in coal- and gas-fired power is expected to drop this year, amid domestic policy changes and the Iran war sending gas prices spiralling.
Together, these trends mean the IEA expects US investment in fossil-fuelled power plants to overtake China’s in 2026.
The IEA’s latest world energy investment report shows that spending on renewables and electricity grids continues to dominate at the global scale.
In the US, Trump administration policies such as the phase-out of tax credits for renewables has led to the IEA revising its forecast for new wind and solar power downwards.
At the same time, US electricity demand is expected to rise by an average of 2% per year from 2026 to 2030, with data centres contributing half of the overall increase.
This is leading to what the IEA calls an “AI-driven push” to build new gas-power plants in the US, the world’s largest data-centre market and largest gas producer.
Globally, orders for new gas-power plants increased to 130 gigawatts (GW) in 2025 – a 25-year high – and US demand was a “major factor” in this, according to the IEA.
Much of the demand is coming from tech companies in the US seeking to bypass grid connection queues by building “captive” gas-power plants.
As the chart below shows, since the start of 2025 these US captive data centres alone have signed off on more investment in new gas turbines than any country in the world – aside from the US itself.
Overall, investment in grid upgrades, power equipment and electricity generation to support the buildout of data-centre infrastructure around the world hit $105bn in 2025, according to the IEA.
This is more than the total invested in the energy sector across the whole of Africa – a continent where more than 600 million people do not have access to electricity.
The IEA notes that strong demand for gas-power plants for data centres in the US – and, to a lesser extent, the Middle East – is “limiting the availability of turbines for near-term deployment elsewhere in the world”.
The agency also points out that as the tech sector becomes a “major energy investor”, accounting for around 40% of all corporate power-purchase agreements, it is also “underpinning momentum” for emerging clean technologies, such as small modular nuclear reactors and advanced geothermal.
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AI boom means US is now ‘investing more’ in fossil-fuel power than China
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