Connect with us

Published

on

UK chancellor Jeremy Hunt has delivered his autumn statement, laying out plans for revitalising the economy at a time of inflation and slow growth.

As the US and the EU pour investment into low-carbon technologies and sectors in order to boost their economies, there had been hopes that the UK could take a similar approach.

Hunt promised tax cuts and “110 measures to help grow the British economy”. However, measures that directly helped to reduce emissions were relatively thin on the ground.

Significant announcements included £960m for a “green industries growth accelerator” to expand domestic low-carbon supply chains and measures to fast-track the connection of new power projects to the grid.

But experts argued that the UK would need more ambitious policies to match other nations in expanding low-carbon infrastructure.

Meanwhile, measures such as support for home insulation, which could also help cut people’s energy bills, were barely mentioned in the new statement.

Scene setting

Amid on-going economic challenges, the UK has faced pressure to come up with a climate-related investment plan comparable to the US Inflation Reduction Act or the EU’s Green Deal Industrial Plan

These strategies involve financially supporting key sectors, such as renewable energy and home insulation, in order to strengthen national competitiveness, while also boosting energy security and cutting bills.

However, while the UK’s opposition Labour party has embraced such a strategy with its proposed “green prosperity plan”, Jeremy Hunt has explicitly distanced himself from it. He wrote in the Times in March that the government would not try to compete with the US and EU on green subsidies:

“Our approach will be different – and better. We are not going toe-to-toe with our friends and allies in some distortive global subsidy race…With the threat of protectionism creeping its way back into the world economy, the long-term solution is not subsidy but security.”

The autumn statement document emphasises that “the UK will not be looking to match countries such as the US pound for pound on the back of policies like the Inflation Reduction Act”.

Instead, it focuses on incentivising private investment and what Hunt has called a “pro-growth regulatory regime”. (See: Green industries growth.)

The statement comes as the UK government withdraws from some of its net-zero policies. In a speech in September, prime minister Rishi Sunak emphasised the burden net-zero placed on British people and announced a rollback of plans to phase out fossil fuel-powered cars and boilers.

As the chart below shows, Hunt used climate-related keywords less in his latest speech than in his first autumn statement in 2022, or in the spring statement earlier this year. He did not specifically mention “climate” at all.

Number of mentions of keywords and phrases related to the climate, in budget speeches since Labour’s Alistair Darling was chancellor in March 2009.
Number of mentions of keywords and phrases related to the climate, in budget speeches since Labour’s Alistair Darling was chancellor in March 2009. Chart by Carbon Brief using Highcharts.

Observers also noted that there was little in the autumn statement to help people struggling to pay their energy bills. 

Energy bills have doubled in three years – partly due to spiralling fossil-fuel prices amid the war in Ukraine. They are expected to rise even higher in January, with a new price cap announcement coming out the day after the autumn statement.

The government previously brought in an energy price guarantee to limit how much people would spend on their energy bills, but this expired in June.  

MartinSLewis on X

Back to top

Grid

The autumn statement included a promise to “speed up access to the national grid” through a number of measures.

Grid constraints on the island of Britain (Northern Ireland’s grid is separate) are increasingly seen as one of the biggest challenges for decarbonising the nation’s energy sector. Many renewable energy projects face a 10- to 15-year delay in gaining a grid connection. 

Britain’s electricity network is aiming to be run entirely on low-carbon energy from 2035, but this could be threatened if renewable generation projects cannot connect to the grid quickly enough.

Beyond connecting renewable energy and other low-carbon energy technologies, challenges with grid connections are also holding back the expansion of industry.

Last week, the Guardian reported that the UK energy secretary Claire Coutinho could be granted powers to fast-track connecting projects to the grid, such as Tata’s planned electric battery gigafactory in Somerset. 

Plans are being discussed by the government and the regulator Ofgem that would allow Coutinho to request that energy network companies accelerate upgrades to substations and power lines to connect specific developments, the article noted.

Earlier in November, Ofgem announced that it is introducing rules to remove “zombie” energy projects from the grid connection queue. 

This represents a significant change from the existing “first-come, first-served” system, which has led to a queue of energy projects that could generate almost 400GW of electricity, well in excess of what is needed to power the entire energy system in Britain.

The autumn statement announced a reform to the grid connection process to cut waiting times, including “freeing up over 100GW of capacity so that projects can connect sooner”.

The change will enable the “significant majority” of projects to get their requested connection date with no wait, as well as reduce the overall connection delays from five years to no more than six months.

Additionally, the government announced an action plan, in response to the review by the electricity network commissioner, Nick Winser, within the statement. The review set out 18 recommendations designed to speed up the delivery of strategic transmission networks.

The action plan will halve the time it takes to build new grid infrastructure to seven years, the statement suggests.

The core elements of this are:

  • Proposals for community benefits with up to £10,000 off electricity bills.
  • Consulting on reforms to energy consenting rules in Scotland next year.
  • “Committing to commission” the ESO to work with government to introduce a “strategic spatial energy plan”.
  • Introducing competition into onshore electricity networks in 2024.

These actions will help to lower electricity prices, delivering an estimated net saving of £15-25 on average per household per year out to 2035, the statement notes.

Analysis published by the department for energy security and net-zero (DESNZ), reviewed by the Energy Systems Catapult and referenced within the statement, estimates that, once embedded, the grid reforms could increase investment temporarily by an average of £10bn per year over the next 10 years. This would speed up the transition to net-zero, it notes.

The autumn statement did not include a battery strategy, only noting that the government will “shortly set out more on its actions to support investment and growth in the manufacturing sector with the publication of the advanced manufacturing plan and UK battery strategy”. 

Back to top

Green industries growth 

Jeremy Hunt reiterated the £4.5bn for strategic manufacturing sectors, including £960m earmarked for a “green industries growth accelerator”, which the Treasury announced on 17 November. 

The investment is designed to support the expansion of “strong, home-grown, clean energy supply chains”, including carbon capture, utilisation and storage, electricity networks, hydrogen, nuclear and offshore wind.

This will “enable the UK to seize growth opportunities through the transition to net-zero, building on our world-leading decarbonisation track record and strong deployment offer,” the government’s statement notes. 

The investment was welcomed by the renewable industry, with trade association RenewableUK’s chief executive Dan McGrail saying in a statement

“The chancellor has been clear that the green industries growth accelerator is for strategic industries, targeted to unlock maximum private investment where the UK can be competitive – and there couldn’t be a better fit for that than offshore wind and renewables. With the right support, the likes of which we’ve seen from government today, industry estimates that the offshore wind supply chain alone could boost the UK’s economy by £92bn by 2040.”

The fund will sit alongside the range of long-term deployment support set out in Powering Up Britain, published in March, which will “ensure the government delivers the clean energy transition and boosts green investment and job creation across the country”, the statement notes.

Within the autumn statement, the next set of investment zones are named, including the East Midlands, which will have a focus on green industries and advanced manufacturing. This is expected to help leverage £383m in private investment and create 4,200 jobs in the region over the next 10 years, it says.

Beyond this, the autumn statement announces permanent full expensing, including the 50% first-year allowance for special rate assets. This applies across the economy, with the statement highlighting the impact on capital-intensive, low-carbon industries, such as solar and offshore wind. 

Additionally, permanent full expensing can support companies looking to decarbonise by investing in solar panels and heat pumps, as well as “greener” machinery, the statement notes. 

ChiefExecCCC on X

Reacting to this, Rachel Solomon Williams, executive director at the Aldersgate Group, said:

“We welcome the announcement that capital full expensing will be made permanent, as it can drive business investment in decarbonisation – but it is not enough on its own. This urgent need for action is demonstrated in clean energy investment, where the UK has fallen from fourth to seventh in attractiveness to investors, in part due to global competition from the US and the EU, but also a lack of consistent policy support from the government.

“A comprehensive response to the US Inflation Reduction Act remains critical, as part of a clear industrial strategy which provides the UK economy with a clear direction that businesses can rely on.”

The autumn statement also mentions the Industrial Energy Transformation Fund (IETF), which provides funding to support industrial sites to invest in more energy efficiency and low-carbon technologies. 

IETF was initially announced in the 2018 budget, with £315m of funding made available up until 2027 at the time. The fund is now into its third phase, with the £185m – mentioned in the autumn statement – announced in March 2023

This funding will come from the £6bn announced in the autumn statement in 2022, to support energy efficiency from 2025. Further allocations are set to come out “in due course”, the 2023 statement notes. 

Under the six-year Climate Change Agreement scheme, set to start in 2025, the government is providing around £300m a year in tax relief in exchange for meeting energy efficiency targets. Additionally, it is expanding VAT relief available on the installation of energy-saving materials in residential buildings or those used solely for a relevant charitable purpose. 

In addition to the focus on offshore wind as a strategic sector, the autumn budget outlines plans to bring forward legislation to provide the Crown Estate with borrowing and wider investment power “as soon as parliamentary time allows”. 

This will help to unlock a further 20-30GW of offshore wind seabed rights by 2030, the statement notes.

The government is also working with the Crown Estate to bring forward additional floating wind in the Celtic Sea through the 2030s, which has the potential to see 12GW of generation deployed.

This would be alongside the 4.5GW auction round due to open soon, which has the potential to deliver £20bn in direct employment, the statement says. 

Back to top

Energy efficiency and heating homes

There have been persistent calls for the government to scale up support to help people insulate their homes.

The UK has some of the least efficient housing in Europe. Improving this situation would cut emissions, reduce reliance on fossil-fuel imports and save billions on people’s energy bills.

In last year’s autumn statement, Hunt pledged £6bn of new government funding between 2025 and 2028 to improve energy efficiency in households, businesses and the public sector. He also announced the formation of a new energy efficiency taskforce to help deliver “energy efficiency across the economy”.

Since then, there has been little information about the new funding and the taskforce was scrapped in September, amid the government’s rollback of net-zero policies. 

Sunak also withdrew a policy that would have required landlords to improve the efficiency rating of their rental properties by 2028. This continued a long trend of Conservative governments announcing home-insulation schemes and then scrapping them.

Ahead of this year’s autumn statement, various MPs, housebuilders, charities and climate experts said Hunt should prioritise retrofitting people’s homes. Among the measures proposed were widening access to insulation schemes and more long-term clarity on how existing funds would be spent.

The Daily Telegraph reported on a plan to give new homeowners some of their stamp duty money back if they insulated their houses within two years of moving in. According to the newspaper, this idea was “in the running” for Hunt’s statement.

Expert groups and thinktanks also recommended new financial incentives to encourage landlords to insulate their homes.

In the event, there was very little in the statement on home energy efficiency. The only mention of the £6bn fund was a chunk that would be allocated for industrial sites. (See: Green industries growth.) Juliet Phillips, a senior policy adviser at the thinktank E3G, tells Carbon Brief:

“Our analysis suggests that £6bn would barely cover the costs of domestic retrofit, let alone industrial energy efficiency as well. The mammoth task of improving the UK’s leaky homes can’t be underfunded; and we’d encourage additional funding to be put aside to support industry.”

There was more on decarbonising heating, following on from Sunak’s recent announcement that he would increase grants under the boiler upgrade scheme from £5,000 to £7,500, in order to incentivise the switch from fossil-fuel boilers to electric heat pumps.

The government says it will launch a consultation into changing planning regulations to “end the blanket restriction on heat pumps one metre from a property boundary in England”. It adds that this will “reduce delays”.

It also commits to expanding the VAT relief available on the installation of energy-saving materials to additional technologies, including water-source heat pumps.

Back to top

Levies

The autumn statement confirmed the energy profits levy will end no later than 31 March 2028. This was brought in in 2022 in response to the enormous profits made by oil-and-gas majors due to the elevated global price of fossil fuels. 

It was initially set at 25%, before being raised to 35% by Hunt during the autumn statement in 2022. 

Within the autumn statement, an investment exemption for the electricity generator levy has now been introduced.

The windfall tax was introduced during the spring budget 2023, applying a 45% levy on electricity generators who have made excess profits amid high power prices. 

Since its introduction, the energy sector has been calling for the introduction of investment allowances, which allows generators to re-invest tax expenditures into low-carbon technologies.

An investment allowance was always included in the energy profits levy, a move that trade body Energy UK said sent the “wrong signal to investors”, as oil-and-gas extraction would face “a lower rate of effective tax than low-carbon generators”. 

New electricity generation stations or expansions of existing generation assets made on or after 22 November 2023, will now not be subject to the levy. The electricity generator levy is also set to end on 31 March 2028.

The government is going to freeze main and reduced rates of climate change levy in the UK in 2025-26, the autumn statement notes.

As such, the levy for electricity and gas will be frozen at £0.00775/kWh, liquid petroleum gas (LPG) at £0.02175/kWh and any other taxable commodity at £0.06064/kWh.

Reduced rates will be frozen at 92% for electricity, 77% for LPG and 89% for gas and any other taxable commodity, it notes.

Alongside the autumn statement, the government has published the conclusion to the review of the oil and gas fiscal regime, as well as set out the final design of the energy security investment mechanism. This includes future adjustments to the mechanism’s price thresholds in response to inflation. 

This package will “provide certainty and predictability for investors and operators in this crucial industry in the short-, medium- and long-term”, the statement notes.

Back to top

Best of the rest

Beyond these key energy and climate announcements, the autumn statement also saw reforms to the emissions trading scheme (ETS).

These were set out in July 2023 and will reduce the number of ETS permits available for purchase from the government by 45% between 2023 and 2027, the statement notes. 

Additionally, the scheme will be extended to cover emissions from domestic maritime and energy from waste in 2026 and 2028, respectively, marking an “important step in achieving net-zero ambitions”.

The autumn statement also announced that the government will look to remove unnecessary planning constraints by accelerating the expansion of the electric vehicles (EV) charging infrastructure.

This builds on actions laid out already in the government’s EV infrastructure strategy, which set out the government’s EV vision for 2030. 

The government will consult on amending the national planning policy framework to prioritise the rollout of EV charge points, including EV charging hubs, the statement says.

JMarshall_3 on X

As of the end of October 2023, there were 51,516 EV public charging points across the UK at 30,360 charging locations, according to charging services provider Zapmap. This was a 45% increase in the number of charging devices since October 2022. 

With sales of EVs continuing to surge in the UK, charging infrastructure will need to keep pace, to facilitate the transition from petrol and diesel vehicles.  

Despite pressure from the Treasury to raise fuel duty, the autumn statement left it frozen at 57.95p, the same level it has been at since 2011. Fuel duty was only mentioned once in the autumn statement, in reference to the drop in inflation.

The post Autumn statement 2023: Key climate and energy announcements appeared first on Carbon Brief.

Autumn statement 2023: Key climate and energy announcements

Continue Reading

Climate Change

Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition

Published

on

Indigenous leaders from across the Amazon have warned that stopping the expansion of oil drilling into their territories will be a crucial test for a growing international coalition committed to transitioning away from fossil fuels.

As 60 countries discussed at a landmark conference in Santa Marta, Colombia, pathways to end the world’s reliance on fossil fuels, Indigenous groups said the process risks losing credibility if governments continue opening new oil frontiers in the Amazon.

Their central demand was the establishment of fossil fuel “exclusion zones” across Indigenous territories and biodiverse areas of the rainforest, permanently barring new oil and gas expansion in one of the world’s most critical ecosystems. Indigenous representatives proposed establishing protected “Life Zones”, which they said would provide legal safeguards against governments and companies seeking to expand extraction into their lands.

But Indigenous delegates left the conference frustrated as the final synthesis report drafted by co-chairs Colombia and the Netherlands failed to include the proposal.

In a statement at the end of the conference, Patricia Suárez, from the Organization of Indigenous Peoples of the Colombian Amazon (OPIAC), said formally declaring Indigenous territories – especially those inhabited by peoples in voluntary isolation – as exclusion zones for extractive industries was “an urgent measure”.

“If the heart of the conference does not begin there, it risks remaining a set of good intentions that fails to respond to either science or our Indigenous knowledge systems,” she added.

Pushing for a new oil frontier

Campaigners say the pressure on the Amazon is intensifying just as scientists warn the rainforest is nearing irreversible collapse. Around 20% of all newly identified global oil reserves between 2022 and 2024 were discovered in the Amazon basin, fuelling renewed interest from governments and companies seeking to develop the region as the world’s next major oil frontier.

Ecuador has moved ahead with the auction of new oil blocks in the rainforest, while the country’s right-wing president Daniel Noboa has promoted the region as a “new oil-producing horizon” and backed efforts to expand fracking with support from Chinese companies.

    In Santa Marta, a coalition of seven Indigenous nations from Ecuador issued a declaration condemning the government, which did not participate in the conference.

    “While the world talks about energy transition, our government is pushing for more oil in the Amazon,” said Marcelo Mayancha, president of the Shiwiar nation. “Throughout history, we have always defended our land. That is our home. We will forever defend our territory.”

    Indigenous groups also warned that Peru – another South American nation absent from the conference – plans to auction new oil blocks in the Yavarí-Tapiche Territorial Corridor, a highly sensitive region along the Brazilian border that contains the world’s largest known concentration of Indigenous peoples living in voluntary isolation.

    COP30 host under scrutiny

    Indigenous leaders also criticised Brazil, arguing that despite its international climate leadership, the country is simultaneously advancing major new oil projects in the Amazon region.

    Luene Karipuna, delegate from Brazil’s coalition of Amazon peoples (COIAB), said the oil push threatens the stability of the rainforest. Not far from her home, in the northern state of Amapá, state-run oil giant Petrobras is currently exploring for new offshore oil reserves off the mouth of the Amazon river.

    Brazil participated in the Santa Marta conference and was among the countries that first pushed for discussions on transitioning away from fossil fuels at COP negotiations. Yet the country is also planning one of the largest expansions in oil production in the world, according to last year’s Production Gap report.

    Veteran Brazilian climate scientist Carlos Nobre told Climate Home that the country’s participation at the Santa Marta conference contrasted with its oil and gas production targets. “It does not make any sense for Brazil to continue with any new oil exploration,” he said, and noted that science is clear that no new fossil fuels should be developed to avoid crossing dangerous climate tipping points.

    He added that the Brazilian government faces pressures from economic sectors, since Petrobras is one of the countries top exporting companies. “They look only at the economic value of exporting fossil fuels. Brazil has to change.”

    The COP30 host also promised to draft a voluntary proposal for a global roadmap away from fossil fuels, which is expected to be published before this year’s COP31 summit.

    “In Brazil, that advance has caused so many problems because it overlaps with Indigenous territories. Companies tell us there won’t be an impact, but we see an impact,” Karipuna said. “We feel the Brazilian government has auctioned our land without dialogue.”

    For Karipuna and other Indigenous leaders, establishing exclusion zones across the Amazon is no longer just a regional demand, but a prerequisite to prevent the collapse of the rainforest.

    “That’s the first step for an energy transition that places Indigenous peoples at the centre,” she added.

    The post Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition appeared first on Climate Home News.

    https://www.climatechangenews.com/2026/05/08/indigenous-amazon-oil-expansion-fossil-fuel-phase-out-coalition-santa-marta/

    Continue Reading

    Climate Change

    Kenya seeks regional coordination to build African mineral value chains

    Published

    on

    African leaders have intensified calls for governments to stop exporting raw minerals and step up efforts to align their policies, share infrastructure and coordinate investment to add value to their resources and bring economic prosperity to the continent.

    In a speech to the inaugural Kenya Mining Investment Conference & Expo in Nairobi this week, Kenyan President William Ruto became the latest African leader to confirm the country will end exports of raw mineral ore. The East African nation has deposits of gold, iron ore and copper and recently launched a tender for global investors to develop a deposit of rare earths, which are used in EV motors and wind turbines, valued at $62 billion.

    Kenya is among more than a dozen African nations that have either banned or imposed export curbs on their mineral resources as they seek to process minerals domestically to boost revenues, create jobs and capture a slice of the industries that are producing high-value clean tech for the energy transition.

      “For too long we have extracted and exported raw materials at the bottom of the value chain, while others have processed, refined, manufactured and captured the greater share of economic value,” Ruto told African ministers and stakeholders gathered at the mining investment conference in Nairobi.

      As a result, Africa currently captures less than 1% of the value generated from global clean energy technologies, he said. To address this, Kenya, in collaboration with other African nations, “will process our minerals here in the continent, we will refine them here and we will manufacture them here”, he added.

      Mineral export restrictions on the rise

      Africa is a major supplier of minerals needed for the global energy transition. The continent holds an estimated 30% of the world’s critical mineral reserves, including lithium, cobalt and copper. The Democratic Republic of Congo produces roughly 70% of global cobalt, a key ingredient in lithium-ion batteries, while countries such as Guinea dominate bauxite production, and Mozambique and Tanzania hold significant graphite deposits.

      But African governments have struggled to attract the investment needed to turn their vast mineral wealth into a green industrial powerhouse. Recently Burundi, Malawi, Nigeria and Zimbabwe are among those that have resorted to banning the export of unrefined minerals to incentivise foreign companies to invest in value addition locally.

      Outdated geological data limits Africa’s push to benefit from its mineral wealth

      This week, Zimbabwe exported its first shipments of lithium sulphate, an intermediate form of processed lithium that can be further refined into battery-grade material, from a mine and processing plant operated by Chinese company Zhejiang Huayou Cobalt.

      After freezing all exports of lithium concentrate – the first stage of processing – earlier this year, the government introduced export quotas and will ban all exports from January 2027.

      Export restrictions on critical raw materials have grown more than five-fold since 2009, found a report by the Organisation for Economic Co-operation and Development (OECD) published this week. In 2024, a more diverse group of countries, including many resource-rich developing economies in Africa and Asia, introduced restrictions, including Sierra Leone, Nigeria and Angola.

      This is “a structural shift in the wrong direction,” Mathias Cormann, the OECD’s secretary-general, told the organisations’ Critical Minerals Forum in Istanbul, Turkey, this week.

      “We understand the motivations: building local industries, managing environmental impacts, capturing greater value domestically. But our research is quite clear. Export restrictions distort investment, reduce volumes and undermine supply security often while delivering limited gains in value added,” he said.

      In-country barriers to success

      Thomas Scurfield, Africa senior economic analyst at the Natural Resource Governance Institute, told Climate Home News that export restrictions “can look like a promising route to local value addition” for cash-strapped African mineral producers but have “rarely worked” unless countries already have reliable energy, infrastructure and competitive costs for processing.

      “Without those conditions, bans may simply push companies to scale back mining rather than scale up processing,” he said.

      Alaka Lugonzo, partnerships lead for Africa at Global Witness, identified gaps in practical skills and infrastructure as other major barriers. “You need engineers, geologists, marketers,” Lugonzo said, warning that graduates are increasingly unable to match the pace of industry change.

      On infrastructure, she said that plentiful and stable energy supplies are vital and while Kenya has relatively robust road networks, they are insufficient for industrial-scale operations.

      “Meaningful value addition and real industrialisation requires heavy machinery… and you will need better infrastructure,” she said, highlighting persistent last-mile challenges in mining regions where “there’s no railway, there’s no electricity, there’s no water”.

      Export capacity is another concern, she said, particularly whether existing port systems could handle increased volumes of processed minerals.

      Regional approach recommended

      Scurfield said that through regional cooperation – including pooling supplies, specialising across different stages of refining and manufacturing, and building larger regional markets – “African countries could overcome many domestic constraints that make going alone difficult”.

      That’s what close to 20 African governments are working to deliver as part of the Africa Minerals Strategy Group, which was set up by African ministers and is dedicated to foster cooperation among African nations to build mineral value chains and better benefit from the energy transition.

      Africa urged to unite on minerals as US strikes bilateral deals

      Nigerian Minister of Solid Minerals Dele Alake, who chairs the group, said “true collaboration” between countries, including aligning mining policies, sharing infrastructure, coordinating investment strategies and promoting trade across the continent, will create the conditions for long-term investments that could turn Africa into “a formidable and competitive force within the global mineral supply chain”.

      “The time has come for Africa to redefine its place within the global mineral economy and that transformation must begin with regional integration and regional cooperation,” he told the mining investment conference in Nairobi.

      Lugonzo of Global Witness agreed, saying that value-addition would benefit from adopting a continental perspective. “Why should Kenya build another smelter when we can export our gold to Tanzania for smelting, and then we use the pipeline through Uganda to take it to the port and we export it?” she asked.

      To facilitate that, there is a need to operationalise the Africa Free Trade Continental Agreement (AFTCA), she added. “That agreement is the only way Africa is going to move from point A to point B.”

      The post Kenya seeks regional coordination to build African mineral value chains appeared first on Climate Home News.

      https://www.climatechangenews.com/2026/04/30/kenya-seeks-regional-coordination-to-build-african-mineral-value-chains/

      Continue Reading

      Climate Change

      Key green shipping talks to be held in late 2026

      Published

      on

      The future of the global shipping industry – and its 3% share of global emissions – will be decided in three weeks of talks in the third quarter of this year, after a decision taken in London on Friday.

      At the International Maritime Organisation (IMO) headquarters this week, governments largely failed to substantively negotiate a controversial set of measures to penalise polluting ships and reward vessels running on clean fuels known as the Net-Zero Framework. The green shipping plan has been aggressively opposed by fossil fuel-producing nations, in particular by the US and Saudi Arabia.

      This week, countries delivered statements outlining their views on the measures in a session that ran from Wednesday into Thursday. Then, late on Friday afternoon, they discussed when to negotiate these measures and what proposals they should discuss.

      After a lengthy debate, which the talks’ chair Harry Conway joked was confusing, governments agreed to hold a week of behind-closed-door talks from 1 September to 4 September and from 23 November to 27 November.

      Following these meetings, which are intended to negotiate disagreements on the NZF and rival watered-down measures proposed by the US and its allies, there will be public talks from November 30 to December 4.

        Last October, talks intended to adopt the NZF provisionally agreed in April 2025 were derailed by the US and Saudi Arabia, who successfully persuaded a majority of countries to vote to postpone the talks by a year.

        Those talks, known as an extraordinary session, are now scheduled to resume on Friday December 4 unless governments decide otherwise in the preceding weeks. While this Friday session will be in the same building with the same participants as the rest of the week’s talks, calling it the extraordinary session is significant as it means the NZF can be voted on.

        Em Fenton, senior director of climate diplomacy at Opportunity Green said that the NZF “has survived but survival is not a victory” and called for it to be adopted later this year “in a way that maintains urgency and ambition, and delivers justice and equity for countries on the frontlines of climate impacts”.

        NZF’s supporters

        The NZF would penalise the owners of particularly polluting ships and use the revenues to fund cleaner fuels, support affected workers and help developing countries manage the transition.

        Many governments – particularly in Europe, the Pacific and some Latin American and African nations – spoke in favour of it this week.

        South Africa said the fund it would create is “the key enabler of a just transition” and its removal would take away predictable revenues from African countries. Vanuatu said that “we are not here to sink the ship but to man it”.

        Australia’s representative called it a “carefully balanced compromise”, as it was provisionally agreed by a large majority after years of negotiations, and warned that failing to adopt it would harm the shipping industry by failing to provide certainty.

        Santa Marta summit kick-starts work on key steps for fossil fuel transition

        Canada’s negotiator said that if it was weakened to appease its critics like the US and Saudi Arabia, this would disappoint those who think it is too weak already like the Pacific islands.

        A large group of mainly big developing countries like Nigeria and Indonesia did not rule out supporting the framework but called for adjustments to help developing countries deal with the changes. Nigeria called for developing countries to be given more time to implement the measures, a minimum share of the fund’s revenues and discounts for ships bringing them food and energy.

        According to analysis from the University of College London’s Energy Institute, the countries speaking in support of the NZF include five countries which voted with the US to postpone talks in October and a further ten countries which did not take a clear position at that time. Most governments support the NZF as the basis for further talks, the institute said.

        Opposition remains

        But a small group of mainly oil-producing nations said they are opposed to any financial penalties for particularly polluting ships.

        They support a proposal submitted by Liberia, Argentina and Panama which has proposed weakening emission targets and ditching any funding mechanism for the framework involving “direct revenue collection and disbursement”.

        Argentina argued that the NZF would harm countries which are far from their export markets and said concerns over that cannot be solved “by magic with guidelines”. They added that, as a result, the NZF itself needs to be fundamentally re-negotiated.

        The UCL Energy Institute said that just 24 countries – less than a quarter of those who spoke – said they supported Argentina’s proposal.

        While this week’s talks did not see the kind of US threats reported in October, their delegation did leave personalised flyers on every delegate’s desk which were described by academics, negotiators and climate campaigners as misleading.

        One witness told Climate Home News that junior US delegates arrived early on Wednesday and placed flyers behind governments’ name plates warning each country of the costs they would incur if the NZF is adopted.

        The figures on a selection of leaflets seen by Climate Home News ranged from $100 million for Panama to $3.5 billion for the Netherlands. “They are trying to scare countries away from supporting climate action with one-sided information”, one negotiator told Climate Home News.

        A flyer left on Pakistan’s desk, shared by a witness with Climate Home News

        They added that the calculations, by the US State Department’s Office of the Chief Economist, ignore the fact that the money raised would be shared to help poorer countries’ transition as well as ignoring the economic costs of failing to address climate change.

        Tristan Smith, an academic representing the Institute of Marine Engineering, Science and Technology, told the meeting that the calculations were “opaque” and flawed as they overstate the contribution of fuel cost to trade costs.

        A US State Department Spokesperson said in a statement that they “firmly stand behind our estimates” which were shared “in good faith” and to “provide an additional tool to policymakers as they contemplate the true economic burden over the NZF”.

        The post Key green shipping talks to be held in late 2026 appeared first on Climate Home News.

        https://www.climatechangenews.com/2026/05/01/key-green-shipping-talks-to-be-held-in-late-2026/

        Continue Reading

        Trending

        Copyright © 2022 BreakingClimateChange.com