After decades of producing planet-heating fuels, depleted oil and gas fields in Malaysia and Indonesia may have a new purpose: putting carbon dioxide from some of Asia’s top emitters back underground, in a big but risky bet by state oil giants and governments.
Malaysia’s oil company Petronas has signed at least 24 memoranda of understanding with nine countries – among them Japan and South Korea – to store their excess CO2 emissions in exploited fossil fuel sites off the coast of peninsular Malaysia and Borneo island, in the gas-producing region of Sarawak.
These plans have sparked accusations of “carbon colonialism” from climate activists, who see exporting emissions for storage in another country as a “get out of jail free” card for continued fossil fuel use.
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While large carbon capture and storage (CCS) facilities exist all over the globe, with many new ones under development, the scale of Petronas’ ambition is untested in the region.
The state-run company is looking to develop three CCS hubs and two flagship projects across Malaysia, for a total storage capacity of 15 million tonnes of CO2 per annum (mtpa) by 2030 – equivalent to Senegal’s emissions in a year. All the world’s CCS plants combined can currently hold about 51 mtpa.
Petronas plans to put 20% of its capital expenditure into decarbonisation projects between 2023 and 2026, with CCS making up a significant portion of the billions of dollars it wants to invest.
These projects are part of Malaysia’s broader energy transition strategy and its bid to become a carbon capture and storage (CCS) hub for Asia, a goal shared by neighbouring Indonesia.
Some of Asia’s top emitters are set to become key clients, with the Japanese government deeming CCS as “indispensable” for reducing power-sector emissions. Out of nine projects Japan has selected to test the viability of CCS, four aim to export carbon overseas, including to Malaysia and Indonesia.
While the International Energy Agency says a small amount of carbon capture will be needed in sectors where emissions are hard to reduce, like cement production, campaigners criticised Indonesia, Malaysia and Japan’s bet on carbon capture as a bid to prolong the lifespan of fossil fuel infrastructure.
Exporting emissions
Some experts consider both Indonesia and Malaysia as favourable locations to store captured CO2 because of their abundance of depleted oil reservoirs and saline aquifers, which could in principle hold the gas below ground.
Under the proposed deals, big industrial emitters in Asia would capture CO2 released when burning fossil fuels in their plants and factories, turn it into a liquid form, and ship it to Southeast Asia for storage.
Last September, Petronas agreed with eight Japanese companies and the Japan Organization for Metals and Energy Security, a government body, to design a project to capture and ship CO2 from Japan, then store it in a compressed “supercritical state” in a depleted gas field off the Sarawak coast.
The Japanese entities will be responsible for capturing and liquefying the carbon emitted from power plants and industrial facilities, including steelworks and chemical plants, in Japan’s Setouchi region. Together with Petronas, they will also design the transport, injection and storage stages.
Meanwhile in Indonesia, Japanese utility Chubu Electric Power has expanded its CCS collaboration with energy giant BP to connect Japan’s Nagoya port with the BP-owned Tangguh gas field in West Papua.
Through initiatives like the Asia Zero Emission Community, Japan has pushed fossil fuel developments in Southeast Asia, including exporting and storing overseas the equivalent of around one-tenth of its current emissions by 2050, according to a report by Japan’s Research Institute of Innovative Technology for the Earth.
In shifting their climate burden and responsibilities to tackle it onto lower-income nations, Japan and other developed countries are engaging in “carbon colonialism”, campaigners say – mimicking a pattern seen in the export of plastic waste from the Global North to the Global South.
“Wealthy, high-emitting countries get to keep burning fossil fuels while offloading their carbon onto nations that have done far less to cause the crisis,” said Sisilia Nurmala Dewi, 350.org Indonesia team lead.
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Risky business
Oil and gas giants like Petronas, BP and Indonesian state oil firm Pertamina, as well as the Malaysian and Indonesian governments, have proposed projects worth billions of dollars, anticipating growing demand for CO2 storage. But analysts are more cautious, citing high uncertainties in the CCS market and technical difficulties in keeping the carbon below ground.
Given its high cost, CCS is largely unfeasible in Malaysia and Indonesia without the existence of cross-border projects, said I Gusti Suarnaya Sidemen, CCUS research fellow at the Jakarta-based Economic Research Institute for ASEAN and East Asia (ERIA), which founded the Asia CCUS Network together with the Japanese government. These are the kind of projects Japan and South Korea are keen to develop.
By financing projects in Indonesia, Japan is creating a strong incentive for Jakarta to pursue these ventures, said Dwi Sawung of WALHI Indonesia, an environmental NGO. “It’s really Japan who will pay.”
On the back of that, both Kuala Lumpur and Jakarta are providing incentives for developers – with the Indonesian government even bearing some of the expense of enhanced gas recovery, a method that uses the captured CO2 to extract more fossil fuels, said ERIA research associate Ryan Wiratama Bhaskara, adding that these investments are potentially risky for both countries.
Grant Hauber, strategic energy finance advisor for Asia at the Institute for Energy Economics and Financial Analysis (IEEFA), a US-based think tank, said there is a “dangerous lack of knowledge in decision-makers worldwide” about the capabilities, risks and costs of CCS.
Hauber said even widely cited success stories, such as the Sleipner and Snøhvit projects in Norway, have struggled with the unpredictable nature of CO2 storage, as the captured carbon has been found to leak and is difficult to measure. Gas giant Equinor’s Sleipner project, for example, overreported its carbon savings by 28% from 2017 to 2021, due to defective monitoring equipment, according to DeSmog.
Injecting carbon into depleted oil and gas fields, where there are many potential paths for leakage or failures, is particularly tricky, Hauber noted, adding that geologies change across regions, making it more complex. “The chemistry is different. The conditions are different. Storage sites will perform differently. It’s what makes it so expensive,” he said.
To date, the vast majority of captured carbon has been used for a process known as enhanced oil recovery, which uses the CO2 to squeeze out hard-to-get oil in depleted fields. But 78% of new projects planned globally are destined for CO2 storage, according to the Global CCS Institute.
The risk of these high-cost abatement schemes, experts say, is that they divert funds away from proven climate solutions, prolong the burning of fossil fuels and, ultimately, cause more emissions. “The real solution isn’t to bury carbon; it’s to stop digging up more,” said 350.org’s Dewi.
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Tool for meeting climate goals?
Malaysia and Indonesia, however, view CCS as essential to meeting their net zero goals while they remain dependent on fossil fuels. For example, by mid-century, Indonesia plans to fit 76% of its coal-fired power plants with CCS technology.
According to ERIA’s estimates, Malaysia has the highest storage potential – around 130 billion tonnes of CO2 – out of all assessed Southeast Asian countries, followed by Indonesia with 49 billion tonnes of CO2.
Both countries are building up their legal frameworks in preparation. Last year, Indonesia adopted regulation that allocates 30% of storage capacity for imported CO2. Malaysia’s parliament approved its first CCS bill this month. In both cases, critics point to a lack of clarity around who is responsible for ensuring CO2 storage in the long run, and whether companies would be liable for damages.
Some projects have already moved forward. The Kasawari gas field off the Sarawak coast is set to become the world’s biggest offshore CCS facility as early as this year and Malaysia’s first large-scale project of its kind.
Kasawari’s gas reserves contain high levels of CO2 and Petronas, the plant’s owner, aims to remove the carbon and inject it under the sea in a depleted gas field to cut the emissions of its extractive activities.
Yet, even if the facility meets its target of storing 3.3 mtpa of CO2, this would amount to only a 1% reduction in Petronas’ current emissions, says a group of Malaysia-based NGOs.
The projects have also received criticism for their lack of transparency. “The environmental impact assessment for Kasawari was approved with absolutely no consultation,” said Meenakshi Raman, president of environmental justice non-profit Sahabat Alam Malaysia. Pollution threats to fishing communities are among the concerns.
Raman also cited a 2023 report pointing to a “huge gap” between the optimistic goal of CCS plants capturing 90% of emissions and real-world results, which show capture rates of around 50%.
The report by policy institute Climate Analytics warned that under-performing plants could become a source of increased emissions for many countries, Raman said, making CCS a “false solution” to the climate crisis.
The post Carbon colonialism? Malaysia and Indonesia plan storage hubs for Asian emissions appeared first on Climate Home News.
Carbon colonialism? Malaysia and Indonesia plan storage hubs for Asian emissions
Israel’s bombardment of Gaza during the conflict that broke out in October 2023 has wrecked progress towards adapting the enclave to climate change and left two million Gazans vulnerable to heatwaves, drought and disease, the Palestinian Authority (PA) said in a new climate plan submitted to the United Nations.
Palestine’s third nationally determined contribution (NDC), uploaded to the UN climate body’s website this week, says that while “the aggression on the Gaza Strip did not make the climate worse”, “it removed the housing, water and sanitation systems, health facilities, energy networks, roads and livelihoods through which people absorb a climate they were already struggling with.”
The 91-page document lists the types of infrastructure it says Israel has destroyed and notes how the destruction will worsen the impacts of climate change. It says the bombing of hospitals and rising hunger have make it harder for Gazans to cope with the health impacts of climate-driven heatwaves and waterborne diseases.
The destruction of water tanks, boreholes and desalination plants, meanwhile, have left Gazans struggling with the effects of water shortages and drought, while mass unemployment reduces people’s ability to afford climate-driven price rises. The erasure of most of the Strip’s homes makes it more difficult for people to avoid the sun’s increasing heat, the NDC said.
Many Gazans are now living in the ruins of collapsed buildings or in makeshift shelters and tents that offer little or no protection from high temperatures.
Palestine’s previous goals to cut emissions and adapt to climate change in Gaza, expressed in its last NDC five years ago, were based on a pre-war baseline that “no longer describes anything that exists”, the NDC says. Progress made since 2021 has now been destroyed, it adds.
Green reconstruction of Gaza
Instead of continuing to aim for these adaptation and emissions-reduction goals, the PA is now calling for the green reconstruction of Gaza. It says buildings should be constructed again in an energy-efficient manner with solar panels and served with modern water, waste and transport systems.
While the PA, controlled by the Fatah political party, continues to claim legitimate control of Gaza, the strip was effectively governed by Fatah’s rival Hamas between 2007 and the recent war. Control is now split between Israel and the political wing of Islamist militant group Hamas, after a US-backed ceasefire took effect in October 2025, although a UN-backed committee plans to take over.
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The United Nations, European Union and World Bank have jointly estimated that Gaza needs $71.4 billion of investment in the next two years to recover and build back. This process should be Palestinian-led, they said in April.
But US President Donald Trump has said the US should “take over” and “own” Gaza and redevelop it as the “Riviera of the Middle East”. Israel’s right-wing prime minister Benjamin Netanyahu has said that Israel should control the territory with civil administration managed by Palestinians favourable to Israel.
With occupation, targets conditional
In the other part of Palestine, the West Bank, the Palestinian Authority carries out some government functions, but ultimate control rests with Israel, which has occupied the West Bank since 1967.
Because Israel controls planning in most of the West Bank, the NDC argues that the PA cannot pursue all the climate projects it wants. In addition, Israel restricts the movement of PA officials, making data collection difficult, and controls the West Bank’s electricity supply meaning that the PA cannot control whether it comes from dirty or clean sources of energy.
Given this situation, the NDC says that all of Palestine’s new climate targets are conditional but it will aim to reduce emissions 12.8% below a business-as-usual baseline by 2035 and 17.1% by 2040. If the Israeli occupation ends and Palestine regains full sovereignty over its land and resources, it will aim for reductions of 15.1% and 19.1% by 2035 and 2040 respectively under an “independence pathway”.
That could allow, for example, for greater electrification and reducing emissions per unit of growth, the document said.
To achieve the 2035 emissions-reduction target and adapt to the impacts of climate change, the PA says it needs $8.6 billion in total. This funding would be spent on measures like encouraging solar farms and rooftop solar and scaling up solar water heating to cover four-fifths of households. To complement the planned increase in solar power, the authority wants to modernise the electricity grid and install battery storage.
In the transport sector, it aims to promote the uptake of electric vehicles, develop bus rapid transit corridors and scrap old polluting trucks and buses. In Gaza in particular, it wants to deploy 66 electric buses when the conflict ends.
To adapt to climate-driven drought, the NDC includes initiatives to reuse wastewater through treatment plants, build desalination plants in Gaza to remove salt from seawater, and promote irrigation for farmers.
The new climate plan was prepared by Palestine’s Environment Quality Authority, with support from the United Nations Development Programme and the governments of Britain and Spain.
The United Nations recognised Palestine’s statehood in 2012 and it joined the UN’s climate convention and signed the Paris climate agreement – which requires countries to submit more ambitious NDCs every five years – in 2016.
The Israeli foreign ministry did not respond to a request for comment. But in late 2024, then Israeli climate envoy Gideon Behar told Climate Home News that the war and the resulting environmental destruction in Gaza was the fault of Hamas.
The post Palestine: Israel’s bombing has left Gaza vulnerable to climate change appeared first on Climate Home News.
Palestine: Israel’s bombing has left Gaza vulnerable to climate change
Solar power generation in the UK reached a new record over the summer of 2026, as temperatures across the nation soared, according to new analysis by Carbon Brief.
Collectively over June, July and August, solar farms and rooftops generated 8.8 terawatt-hours (TWh) of electricity in the UK*, as shown in the chart below.
Speaking to Carbon Brief, Chris Hewett, chief executive of trade association Solar Energy UK welcomed the new record, adding that it was driven by “clear skies and continued growth in deployment”.
This surge in generation took place amid the hottest summer on record in the UK, with five heatwaves between May and August.
Summer 2026 was the sixth sunniest on record, with more than 620 hours of sunshine, according to the Met Office. England and Wales – which experienced the most extreme heat – saw their second-sunniest summers on record.
June 2026 was the hottest June in England since records began in 1884, according to Met Office data, while Wales and the UK as a whole experienced their second-warmest June.
It was the driest July for England and Wales since records began in 1836, with some parts of London seeing no rain at all in the month, while Wisley in Surrey had no rain for 62 days.
In England, temperatures peaked at 38.1C at Kew Gardens in London on 13 August.
According to the Met Office, this summer’s record mean temperature was made 130 times more likely by climate change.
Amid these hot and sunny months, solar power generation increased 23% from the same period in 2025. This is double the level of solar generation over the summer of 2021, according to Carbon Brief analysis.
While solar panels can be affected by periods of extreme heat, the longer hours of daylight and higher levels of irradiation over the summer more than offset any efficiency losses.
June, July and August all saw solar set new monthly records for solar generation – July saw the highest solar generation in a calendar month ever, with 3.3TWh meeting 15% of overall electricity demand for the month.
As of the end of August, the total UK solar generation in 2026 stood at 17TWh – 13% higher than the same point in 2025.
The number of solar farms and rooftop installations has grown substantially in recent years, helping to boost generation. Domestic rooftop solar accounts for around 29% of total capacity.
In 2025, the UK’s solar capacity reached 21 gigawatts (GW) by the third quarter of the year, according to UK government figures. This is a jump of 3GW, or 18%, year-on-year, as Carbon Brief reported in January.
(Capacity is the maximum output possible from an electricity generation, whereas generation is what was produced over a certain time period, such as a day, month or year.)
According to the University of Sheffield, the installed solar capacity is now nearly 24GW.
This includes nearly 172,000 solar installations that have been fitted across the UK since the start of 2026, according to recent government figures. In July alone, more than 19,800 rooftop solar panels were installed – the equivalent of one installation every two minutes.
In total, nearly 1.7m households in the UK now have solar panels installed.
Over 26 heatwave days this summer – periods of at least three days when temperatures exceed the Met Office’s county-level heatwave temperature threshold – UK households with rooftop solar panels avoided an estimated £86.7m in electricity costs, according to analysis by Utility Bidder.
Talking about the surge in solar generation this summer, Hewett says:
“[It] not only kept bills down for people with solar and batteries in their homes, but helped keep overall power prices much lower than they would have been if Britain had been relying on more gas generation during the day”.
Despite the record generation, no new half-hourly solar power output record was set in the summer of 2026. This still stands at 15.2 megawatts (MW) on 23 April 2026.
* This article refers to the UK throughout, but strictly relates to the island of Great Britain, made up of England, Scotland and Wales. Northern Ireland is part of the separate, all-Ireland electricity system.
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The post Analysis: UK solar power hits record high over summer 2026 appeared first on Carbon Brief.
Farmers around Europe are dealing with the aftermath of a summer of extreme heat, drought and wildfires that were exacerbated by climate change.
Human-caused climate change is increasing the severity and likelihood of many extreme weather events around the world, which is increasing volatility for food producers.
This summer resulted in, for example, shrunken potatoes in the Netherlands, reduced carrot harvests in France, dried-up rice fields in Italy and scorched olive groves in parts of the Mediterranean region.
Global food prices are currently at their highest level since early 2023 due to “heatwaves and energy price dynamics”, according to the UN Food and Agriculture Organization.
Other factors such as blocked fertiliser supplies in the Strait of Hormuz and high fuel costs have also played a role in this year’s agricultural outputs.
In the six charts below, Carbon Brief provides a snapshot of the impact this summer’s extremes are considered to have had on crop production and yields across Europe.
1. Most EU countries expect to see declines in cereal production this year
2. Most countries are recording reduced crop yields
3. Around €2bn worth of cereal losses after June heatwave
4. UK yields of wheat, barley and oats are all due to drop in 2026
5. Maize production in France is due to hit a four-decade low
1. Most EU countries expect to see declines in cereal production this year
France, in particular, will see heavy losses in the amount of cereals – such as wheat, barley and oats – it produces this year, according to European Commission data.
French cereal production is expected to drop by almost 8 megatonnes (Mt) in 2026, compared to 2025.
The chart above shows that most European countries, aside from Bulgaria, will also see production losses this year.
Germany is due to see the second-largest losses in production, dropping by almost 4Mt compared to 2025.
Prof Til Feike, a cropping systems expert at the Julius Kühn-Institut, says many areas in Germany and Austria, as with other parts of Europe, have been “hit hard by a long-lasting dry period in combination with record-high heatwaves”.
This has resulted in dry grassland for animals and lower yields of maize, which is a “key fodder crop” for livestock. He tells Carbon Brief:
“In the long run, farming must adapt better to more extreme weather conditions, not only heat and drought, but also prolonged wet periods. So, there is no one-fits-all solution for climate change adaptation.”
2. Most countries are recording reduced crop yields
Heat and a lack of water have “substantially worsened” crop expectations this summer in western and most of central Europe, according to a recent bulletin from the EU Joint Research Centre.
Yields are expected to be “significantly reduced”, with local crop failures “likely” in areas such as France, southern Germany, northern and central Italy, and Hungary, it added.
The chart below shows that yields of cereal grains – which, here, refers to the tonnes of a grain grown per hectare of land – are expected to fall in most EU countries in 2026.
Slovakia, Austria and Hungary are expected to see the largest declines in cereal yields, reducing by more than one tonne per hectare in 2026 compared to 2025.
The recent EU bulletin noted that irrigated crops performed well in Portugal this summer – the country with the largest yield increases. Other crops relying on rainfall showed growing signs of heat stress, it added.
3. Around €2bn worth of cereal losses after June heatwave
The record heatwave that hit many parts of Europe in June contributed to an estimated €2-2.3bn in cumulative grain production losses, as shown in the chart below.
The intense June heat in western Europe would have been “virtually impossible” just 50 years ago, according to a rapid climate attribution study. It was the region’s hottest June on record.
The Energy & Climate Intelligence Unit (ECIU) thinktank analysed June and July 2026 grain forecasts from Coceral, a European grain traders association.
ECIU estimated lost supply by multiplying the change in tonnes of grains between these two months by prices for harvest delivery in 28 European countries.
Major grain producers France, Germany, Hungary and Spain accounted for 86% of the lost revenue, according to the ECIU.
Extreme heat is also expected to have a wider economic impact across the continent. Analysis from Triodos Bank found that this summer’s extreme weather could reduce the EU’s gross domestic product (GDP) by around 1% this year, or around €180bn.
4. UK yields of wheat, barley and oats are all due to drop in 2026
If current trends continue, the average yields for cereals and oilseeds will result in the UK’s worst harvest since detailed records began in 1984, according to ECIU.
Barley yields could fall by 15%, oats by 14% and wheat yields by 6% year-on-year, according to 2026 harvest surveys from the Agriculture and Horticulture Development Board, a non-departmental public body that provides agricultural data to the UK government.
ECIU said that, even if the situation improves, this year is still expected to be one of the five worst harvests on record. This means that four of the five worst harvests in the UK have occurred in the past decade.
Consumers will likely see higher prices and/or smaller vegetables in supermarkets as a result, Tim O’Malley, chairman of UK company Nationwide Produce, told BBC News in August.
Other crops, such as berries, have grown successfully in the extreme heat. But the Guardian noted fears this could dip later this year “as plants become exhausted from heavy cropping during the heatwave”.
5. Maize production in France is due to hit a four-decade low
France has been acutely affected by this summer’s extreme weather, with more than 7,300 excess deaths during heatwaves and a record number of weather stations recording temperatures of above 40C.
The country is the EU’s largest agricultural producer, but heat, drought and wildfires have affected many crops.
The chart below shows that maize production is set to drop by more than one-third (35%) year-on-year.
This could result in France’s lowest maize production since 1980, according to data from Agreste, the country’s agriculture ministry’s statistics service.
Due to the heat, “record-early” grape harvests have also been recorded in various parts of the nation since mid-July, reported Le Monde. In some cases, this means “smaller, less juicy grapes, which will yield less wine”, explained the newspaper.
6. Declines in EU grains since 2025
Overall in the EU, data and projections indicate declines in the output of cereal grains this year.
Cereal production is set to fall by 9% compared to 2025, according to the European Commission.
Just one year in the past decade – 2024 – recorded lower production levels.
Maize production is set to be particularly affected, with projections indicating a 13% drop, to 52Mt – the lowest level in the EU since 2007.
The post How this summer’s heat and drought impacted crops in Europe – in six charts appeared first on Carbon Brief.
How this summer’s heat and drought impacted crops in Europe – in six charts
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