Bolivia’s election of centre-right President-elect Rodrigo Paz Pereira could see the country open its vast lithium resources to foreign investors to bolster its faltering economy – a move that could benefit the US after years of hostility toward Washington, analysts say.
Paz, a senator and the son of a former president, won the country’s election earlier this month, ending two decades of left-wing rule, which constrained foreign investment in the South American nation’s mineral wealth.
The change in government may be welcomed by investors in the US, which is seeking to secure access to minerals that are critical for clean technology and military equipment, to counter China’s supply chain dominance, and has previously raised concerns over Chinese investments in the region’s lithium industry.
Lithium is a key material to manufacture rechargeable batteries for electric vehicles and energy storage.
Bolivia makes up less than 1% of global lithium production despite possessing some of the world’s largest reserves, with an estimated 23 million tonnes, or 20% of the global total.
Paz has pledged to seek overseas partnerships to tap these reserves. But he will have to balance engaging the US with maintaining investment from China and Russia initiated by his predecessors.
“Exactly what he does on this issue will determine his relationship with China and Russia,” said Farit Rojas, a professor at the Higher University of San Andrés in La Paz.
At the same time, the political reset could provide Bolivia with a critical opportunity to set clearer and stricter environmental and social standards for developing its burgeoning lithium sector, analysts told Climate Home News.
Bolivia’s lithium dream
Paz’s election comes at a pivotal moment for the country. It is mired in an economic crisis spurred by runaway inflation caused by a foreign currency shortage, leaving people waiting in long lines for fuel and essentials like cooking oil.
Converting lithium reserves into a profitable export industry would bring much needed dollars into the country.
But doing so would require amending Bolivia’s constitution to allow private firms to extract the mineral. That privilege was restricted to Bolivia’s state-owned companies under the 20-year rule of the Movement for Socialism (MAS), the party formerly led by ex-President Evo Morales.
Constitutional restrictions and past rejection of foreign investment mean Bolivia’s lithium resources remain largely untapped compared to neighbouring Argentina and Chile, whose deposits are of higher quality.
A significant share of Bolivia’s deposits also lie beneath the Salar de Uyuni salt flats, a major tourist attraction.
Paz, whose party does not have a legislative majority, has yet to say whether and how he will amend Bolivia’s constitution. But he has pledged not to “sell out” Salar de Uyuni.
US, China and Russia: a balancing act
His first months in office will be watched closely by the Trump administration. Following Paz’s election victory, the US Department of State pledged to work with him on “shared goals of regional and global security, economic prosperity, and growth that will benefit our nations”.
For the US, this could be an opportunity to break China and Russia’s grip on Bolivia’s lithium reserves, said Pablo Hamilton, a Chilean mining lawyer connecting foreign investors with energy opportunities in Bolivia.
In 2024, Bolivia’s state-owned Yacimientos de Litio Bolivianos lithium company signed contracts worth a combined $2 billion with Chinese and Russian firms to extract lithium beneath the Salar de Uyuni salt flats. The year prior, it signed a $1.4 billion deal with Chinese battery manufacturing giant CATL to develop its lithium resources.
AI and satellite data help researchers map world’s transition minerals rush
But those contracts – which have yet to be approved by Bolivia’s legislature – have been sharply criticised by scientists, Indigenous peoples and local communities because of a lack of transparency over the consultation process, inconsistencies within the contracts and environmental risks. Paz has pledged to review the contracts.
Cancelling the contracts could cause investors to worry about policy volatility, Hamilton told Climate Home News. But the administration could justify doing so if it can prove allegations of corruption that have swirled around the deals. It could also provide an opportunity to establish stricter mining standards that provide certainty to potential investors.
Investors “don’t know what to expect”
“The rules are not clear enough. It’s very concerning that investors don’t know what to expect,” Hamilton said. “This is a great opportunity to [mandate] a free, prior and informed consultation process and environmental impact assessments – really professional ones, not just to tick the box.”
To attract foreign investment, Paz will likely seek to build public-private partnerships, which will require greater engagement from local actors than in the past, Hamilton said.
In the area surrounding Salar de Uyuni, Indigenous groups have lost trust in the government, citing the shadowy allocation of mining contracts and saying their communities have not benefited from mining.
They also worry that additional extraction would deplete the limited freshwater resources they rely on for farming, said Gonzalo Mondaca of environmental organisation Cedib, which works with communities living in the lithium-rich region.
Efforts to green lithium extraction face scrutiny over water use
The proposed Chinese and Russian extraction plans would use direct lithium extraction (DLE), a group of technologies that proponents say can help extract more lithium with fewer environmental impacts but which still uses large amounts of water.
But existing environmental assessments are not sufficient to understand the impact of the technique on the salt flat’s ecosystem, said Mondaca.
On the campaign trail, Paz also said he would seek to export the magnesium byproducts of lithium extraction to the US and China.
However, that plan requires a high level of technological development and Bolivia currently lacks the necessary infrastructure, said Mondaca.
Even if the new president manages to clear constitutional hurdles to liberalise the country’s lithium sector, “there is still a long way to go,” he added.
The post Bolivia’s shift to the right renews ambition to mine vast lithium reserves appeared first on Climate Home News.
Bolivia’s shift to the right renews ambition to mine vast lithium reserves
Climate Change
UN chief urges countries to adopt fossil fuel transition plans with timelines
The head of the United Nations has called on all countries to deliver plans for phasing out their production and consumption of fossil fuels, as rising oil prices and climate shocks threaten energy and human security.
In his farewell speech to the UN General Assembly (UNGA) in New York on Tuesday, outgoing UN Secretary-General António Guterres for the first time urged “every government to adopt a national plan to transition away from fossil fuels” aligned with limiting warming to 1.5C. The plans, he said, should include “clear timelines and protection for affected workers and communities”.
“We know fossil fuel interests won’t step aside on their own. For decades, Big Oil has treated the atmosphere as an open sewer – and cashed in on the consequences,” Guterres told diplomats in his speech opening the leaders’ segment of the assembly, also calling out the industry’s windfall profits after Russia’s invasion of Ukraine.
At last year’s COP30 climate summit in Belém, a group of about 80 governments led a failed push to develop a global roadmap to transition away from fossil fuels. Brazil instead proposed to draft a voluntary report that will be presented this year ahead of COP31 after countries and organisations submitted their views to the process.
Governments first agreed to transition away from fossil fuels in energy systems at COP28 in Dubai in 2023, but have since failed to agree at UN climate talks on how to move forward with that commitment, as efforts to do so have been effectively blocked by large fossil fuel-producing countries.
France, Netherlands issue plans
A few countries have moved forward with their own transition plans. France launched the first one at an international conference on the issue in April and the Netherlands followed suit this month. Not being major fossil fuel producers, both European nations aim to end their coal, oil and gas consumption by 2050, although the Dutch plan was criticised for not setting specific phase-out dates for the dirty fuels.
Adão Soares Barbosa, climate ambassador from Timor-Leste and chair of the Least Developed Countries (LDC) group in the UN climate negotiations, told a press briefing on Tuesday that last year’s discussions on shifting away from fossil fuels need to continue at COP31, adding that developed countries should lead the way with transition plans and curb their use of fossil fuels.
“We are expecting that we can make a request to major-emitting countries to limit emissions from this sector,” he said. “For LDCs, we’ll also try to reduce fossil fuel use, but it will depend on national circumstances.”
Samoa’s lead negotiator Anna Rasmussen said small island states have outlined their energy transition plans in their nationally determined contributions (NDCs) – countries’ plans for meeting the Paris Agreement goals – but added “we’re still waiting” for climate finance to help implement those plans.
Despite the global push to clean up the energy mix, countries leading climate talks are themselves also expanding fossil fuel production. COP31 co-presidents Australia and Türkiye have both recently given the green light to mine and drill more coal, oil and gas, and still depend on fossil fuels for 60% and 56% of their electricity production respectively.
Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn
COP30 host nation Brazil has also persisted with its plans to explore potential new oil reserves near the mouth of the Amazon River – a region known as the Equatorial Margin.
These are moving ahead despite President Luiz Inácio Lula da Silva announcing last year at the Belém climate summit that the country would develop its own fossil fuel phase-out plan. This is still under development with little information about its progress and may be hampered by elections next month.
“We have achieved our self sufficiency in oil and will continue to explore the potential of new reserves, such as those in the Equatorial Margin,” Lula said in his speech to the UNGA on Tuesday. “But we will not abandon the environmental agenda,” he insisted. “We will move forward with the roadmap for the decarbonisation of the Brazilian economy.”
Transition far cheaper than status quo
Speaking at the main Climate Week NYC venue, Mads Christensen, executive director of Greenpeace International, said given the fast-shifting cost dynamics for both fossil fuels and renewables, countries should revise their existing energy plans because they are now out of date.
Gas power generation now costs around 150 euros per megawatt compared with around 50 euros for solar with battery storage – making the latter two-thirds cheaper.
“If these plans were updated, I think we would have a much faster transition because it simply makes good financial sense,” he said.


Tzeporah Berman, founder and chair of the Fossil Fuel Treaty Initiative, told Climate Home News that the Santa Marta process for transitioning away from fossil fuels (TAFF), launched at April’s conference, could help countries discuss, design and develop their national roadmaps, as well as mobilise the international cooperation required to actually deliver them.
“Many countries want not only national roadmaps but a global roadmap off the highway to hell,” she added. “A global plan is necessary to ensure the rules aren’t rigged against those who want to do the right thing and so all countries can make credible commitments.”
The second TAFF conference will be held in the Pacific island nation of Tuvalu next spring, co-chaired by Ireland. In New York, Tuvalu’s climate minister Maina Vakafua Talia called for stepped-up efforts to tackle the fossil fuel use that is threatening his country’s “demise” by driving global warming.
“The world is running out of time, and so I ask every government to come to… Tuvalu with solutions – real solutions, not false solutions – for us to ensure that we have a pathway and a way forward,” he urged.
The post UN chief urges countries to adopt fossil fuel transition plans with timelines appeared first on Climate Home News.
UN chief urges countries to adopt fossil fuel transition plans with timelines
Climate Change
COP31 electrification pledge leaves out clean power commitment
COP31’s flagship initiative to accelerate the electrification of the world’s economy has been criticised for failing to include a commitment to produce the power from clean energy.
Governments that sign the voluntary pledge at this year’s UN climate summit will commit to increasing electricity’s share of total energy consumption to 35% globally by 2035 in line “with pathways consistent with keeping 1.5C alive”, the text unveiled by the Turkish presidency on Tuesday says.
While the document says that the electrification goal is “complementary to efforts to expand renewable energy and improve energy efficiency”, governments are not explicitly asked to commit to producing the extra power with clean sources and driving down greenhouse gas emissions.
The text instead says the “use of clean electricity” will vary according to national circumstances. Fossil fuels are not mentioned by name, although the pledge cites the COP28 Global Stocktake decision, which called for “transitioning away from fossil fuels” in energy systems.
COP31 president Murat Kurum said earlier this month that the push to make electrification more “widespread” – through measures like the rollout of electric vehicles and heat pumps – will “automatically” lead to a reduction in the use of fossil fuels.
But many campaigners disagree, criticising the proposed pledge for failing to give an explicit signal on the fossil fuel transition.
Lack of clarity on energy sources
“Let’s not let electrification become the Trojan horse of our times, used to hide new fossil fuel consumption rather than promote renewable energy,” Claire Smith from civil society umbrella group Beyond Fossil Fuels said in reaction to the pledge’s publication.
She added that the commitment will only help address the climate crisis if electrification is powered by a flexible energy system where solar and wind are complemented by enhanced grids and storage.
The pledge’s text says that the electricity goal should be supported by “diverse and sustainable energy sources”, but it stops short of explaining what these sources are.
Alden Meyer, an international climate policy expert and senior associate at think-tank E3G, said the details of the pledge matter to how effective it will be in helping bring planet-heating emissions down.
“It has to be clean, and we haven’t got enough clarity on a guarantee that it will be a decarbonisation move,” he told Climate Home News.
China’s industrial engine starts to break its fossil fuel habit
According to an annual electricity review from energy think-tank Ember, in 2025 renewables edged ahead of coal power for the first time in 100 years. Continued growth in solar and wind pushed the share of renewables above a third of global electricity generation to just under 34%, compared with coal at 33%, it said.
Janet Milongo, energy Transition lead at CAN International, said success cannot be measured simply by how much of the world’s final energy consumption becomes electric.
“We must ask what generates that electricity, who has access to it, who owns the infrastructure, and whether it is helping communities transition away from fossil fuels,” she added.
Electrification alone can’t meet climate goals
Analysis published by the IEA on Tuesday, alongside the pledge, found that it would already be cost-effective to raise electricity’s share of global energy use from 23% today to around 33% with existing technologies, putting the COP31 goal “within striking distance”. Based on current policies, however, the share reaches only about 30% by 2035.
Hitting the 35% target would cut fossil fuel importers’ import bills by around $400 billion a year by 2035, the IEA said. At the higher prices caused by the conflict in the Middle East, that saving rises to more than $500 billion.
Speaking at New York Climate Week on Tuesday, IEA executive director Fatih Birol said the agency’s figures show that in 2026, about 80% of all new power plants built will run on renewables, with a few percentage points coming from nuclear power and the rest from fossils fuels. “So therefore, electrification itself will lead reduction of the [greenhouse gas] emissions,” he added.


However, the IEA warned in its new report that electrification “by itself is not enough” to meet the world’s climate targets. It noted that, if “low-emission” sources of power continue to simply grow in line with current policy scenarios, that would be only just enough to cover the extra demand from electrification, driving a modest decline in emissions.
Matt Webb, associate director of global clean power diplomacy at E3G, said the pledge is a “welcome signal of leadership” and can help COP31 be a “critical moment” for countries to double down on the energy commitments made at COP28.
But to secure the full benefits of electrification, he added, it is essential that we “urgently clean up” by speeding up the rollout of renewables and developing credible national plans to transition away from fossil fuels.
The post COP31 electrification pledge leaves out clean power commitment appeared first on Climate Home News.
COP31 electrification pledge leaves out clean power commitment
Climate Change
As loss and damage fund stalls, Nepal crowdfunds flood relief
People around the world have donated almost $90 million to a government-led campaign to help Nepal recover from its recent devastating Himalayan flood, according to a Nepali climate negotiator, even as the UN chief slammed the tiny amount of money in a new fund to deal with such disasters.
Individuals and companies from Nepal and abroad have chipped in from $5 to “many millions” of dollars to the Prime Minister’s Disaster Relief Fund, Manjeet Dhakal, an advisor to the poorest countries at UN climate talks, told an event on Monday focused on early warning systems.
The prompt and substantial response from the public contrasts with the slower, more limited support that is potentially on offer from the UN’s new Fund for Responding to Loss and Damage (FRLD), set up by governments to compensate developing countries for climate disasters.
Comment: Human security relies on adapting to the world’s new climate reality
Over three weeks have passed since Nepal’s finance and environment ministers asked the FRLD board to take an urgent decision to allocate funding to help Nepal protect people and restore essential services in the wake of the disaster, which caused around 1,450 deaths and left more than 5,000 people missing.
“Time is of the essence,” the ministers wrote in an appeal to the FRLD on August 31, which was swiftly followed by a letter from a group of developing-country board members urging the FRLD board’s co-chairs to organise an extraordinary meeting to come up with a response.
Loss and damage fund hesitates
Yet, despite informal online meetings, the co-chairs have yet to convene a meeting with the power to allocate funds. The board’s next scheduled meeting begins on December 15.
Dhakal said on Monday that the request has “received some positive response, but still there is some discussion ongoing about how to respond to that”.
“If they can’t respond in a timely manner, then is [the fund] fit for purpose in terms of disasters that the world would be facing in the coming years? The scale and intensity of these disasters is increasing,” he said.
With just $820 million pledged to it by rich countries and not all of that yet delivered, the FRLD has earmarked just $350 million to spend in its initial phase and without further contributions could run out of money next year.
Because of these limited funds, and a huge number of requests for funding totalling nearly $3 billion, the FRLD has said it will only give out a maximum of $20 million to each project for now. It has yet to approve funding for any projects.
Dhakal recently told The Nation magazine that this amount was just a “symbolic gesture”. Nepal’s government has estimated the costs of recovery and reconstruction at $4.8 billion, with homes, roads, bridges, hospitals and hydropower stations in the affected area needing to be repaired and rebuilt.
“Ridiculously small” funding
In a speech to the UN General Assembly on Tuesday, the body’s outgoing Secretary-General António Guterres criticised the “ridiculously small” level of funds made available by wealthy governments to the FRLD. Developed countries should “make the loss and damage fund work at scale”, he said.

The Portuguese diplomat told world leaders that when he travelled to Nepal three years ago, he had “sounded the alarm on accelerating glacier melt, warning that the rooftops of the world are caving in”.
“Some dismissed it all as overstating dangers, but as tragic events have shown, impacts are arriving sooner, hitting harder, and spreading further than many anticipated,” he said.
A recent study by scientists with the World Weather Attribution group found that climate change contributed to the rock-ice avalanche which sparked a huge flash flood along a river valley on the Nepal-Tibet border.
Speaking at a separate event in New York on Monday, leading climate scientist Johan Rockström highlighted those findings on the role of global warming in the Himalayan disaster.
“This will be potentially the first poster-child case of a loss and damage invoice, because here we have a proven case of a catastrophe which would not have occurred if it hadn’t been for human-caused climate change,” he said.
The post As loss and damage fund stalls, Nepal crowdfunds flood relief appeared first on Climate Home News.
As loss and damage fund stalls, Nepal crowdfunds flood relief
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