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Welcome to Carbon Brief’s China Briefing.

Carbon Brief handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.

Key developments

China’s top climate negotiator interviewed

COAL STANCE: China News Weekly recently interviewed Su Wei, China’s lead climate negotiator, about China’s stance at COP28 and its energy transition. Su affirmed China’s position on fossil fuels, saying that it is “impossible to completely phase out fossil fuels, given limitations of the resources China possesses”. He argued that countries did not have to “be utterly opposed” to fossil fuels as long as the central question of emissions is solved, through technologies such as carbon capture, utilisation and storage (CCUS). Substituting fossil fuels with renewable energy should follow the principle of “establish [new rules] before breaking [old ones]”, he added. This means a “process” needs to be followed – namely, after “large-scale development” of renewable energy and non-fossil fuel energy, “coal power will be gradually reduced and the proportion of coal stock will also decline”.

DEVELOPED VS DEVELOPING: Su also highlighted the role of developed countries as a key debate at COP28. He described the current international environment as the “biggest challenge to realising the goal of tripling renewable energy capacity globally”, with some developed countries imposing tariffs on or launching investigations into Chinese products. He also criticised developed countries’ failure to provide the $100bn in climate finance they committed to in 2009, describing it as a “muddled account”.

US-CHINA OPTIMISM: Nevertheless, Su was relatively optimistic about the potential for US-China climate cooperation. He raised how US-China alignment at COP28 “made an important contribution” to its success, with the Sunnylands statement jointly released by the two countries allowing them to “propose wording for the text and help[ing] to unlock difficult issues in the negotiation”. Climate change, Su said, “remains one of the few positive elements that China and the US can mobilise to promote the stable development of their relationship”, allowing the two countries to “talk” despite other tensions. (In a recent issue of the Pekingnology newsletter, noted international relations scholar Da Wei concurred, saying the US and China “have some agreements on the climate change issue”. He added: “I believe that the two sides will declare more on climate change in the following months.”)

China ‘needs 324tn yuan’ to meet climate goals

‘ENORMOUS AMOUNT’: China needs to “spend about 324tn yuan” ($45.5tn), which is equal to 2.7 times its 2022 GDP, between 2021 and 2060 to achieve its goals of peaking carbon emissions by 2030 and reaching carbon neutrality by 2060, reported state-run newspaper the China Daily. The figures were included in China’s fourth national communication on climate change, which was submitted to the United Nations Framework Convention on Climate Change in December 2023. China “will need to spend far more to reach carbon neutrality than to achieve carbon peaking”, the document added. China’s previous national communication was submitted more than four years ago in 2019.

GROWING INVESTMENT: Meanwhile, China’s annual national economic work conference – held in December 2023 – announced “promotion of…green and low-carbon development” as one of nine key economic tasks in 2024, with “green” development becoming the “driving force for China’s high-quality development”, according to China News. The 2024 national energy work conference, also held in December, established that China aims to build 200 gigawatts (GW) of wind and solar capacity in 2024, as well as 5GW of nuclear energy, the newspaper added. China5E reported that China’s top economic planner, the national development and reform commission (NDRC) said in its first meeting of 2024 that it would develop “tangible policies” to attract private capital to invest in nuclear power and other major energy projects, as well as environmental protection schemes. Investment in renewable energy in China “seems increasingly to be driven by the profit motive”, a Financial Times editorial argued, adding that this trend is accelerated by increasing adoption of “cleantech” by China’s state-owned enterprises.

MARKET FORCES: China is also developing financial platforms to boost “green” and low-carbon investment in the new year. On 2 January, it launched a stock index to encourage “investment products that grant greater weightings for sectors such as renewables”, reported the Financial Times. Meanwhile, should China’s voluntary carbon market, the China Certified Emissions Reduction (CCER) program, relaunch this year, it could encourage finance to flow to projects that, together, could reduce carbon emissions by tens or even hundreds of millions of tonnes, Jiemian noted.

Updated industry guidelines to ‘encourage green tech’

INDUSTRY CATALOGUE: China’s top economic planner, the national development and reform commission (NDRC), released an updated 2024 version of its catalogue for guiding industry restructuring­, designed to “promote high-end, intelligent and green manufacturing”, Xinhua reported. The catalogue divides industries into three categories: encouraged; restricted; and eliminated, reported China Environment. The “restricted” category refers to technologies, equipment and products that, among other things, “are not conducive to the realisation of the goals of carbon peaking and carbon neutrality”, it explained. The “eliminated” category contains technologies that “seriously waste resources, cause pollution…[or] impede the realisation of the goals of carbon peaking and carbon neutrality”, the outlet added. China Environment also reported that the catalogue said it would “encourage green technology innovation and the development of green environmental protection industry, promote energy saving…and resolutely curb the blind development of high-energy-consuming, high-emission and low-level projects”. (The phrase on curbing “blind development” has been in use for several years.)

NEW ADDITIONS: The “encouraged” category adds a “detailed explanation of carbon capture and application”, reported BJX News. The category also adds “green” hydrogen produced by electrolysis of water and synthesis of “green methanol” from carbon dioxide, as well as new solar materials for use in the construction industry, reported the news outlet. The “restricted” category has raised and added limitations for the power sector, such as new coal power units that cannot meet “ultra-low emission” requirements, said the report. Under the “elimination” category, thermal power plants will be phased out in accordance with the principle of “establish first, then modify” (先立后改) with plants eliminated “in an orderly manner, in accordance with an “annual phase-out plan”, added the report. The least efficient coal-fired boilers will be phased out in air pollution priority areas, the outlet added.

OFFICIAL REACTION: Officials from the NDRC told Jiemian that the new edition of the catalogue aims to promote “high-end, intelligent, and green manufacturing industry” in China, they added. The updated catalogue “will encourage green technology innovation and the development of green environmental protection industries, promote energy conservation, carbon reduction and green transformation in key areas”, they told the outlet. 

BYD surpassed Tesla, claiming the top spot in EV sales

BYD VS TESLA: Chinese firm BYD’s sales of battery-only vehicles “outpaced” its US rival Tesla in the final quarter of 2023 for the first time, according to BBC News. BYD sold 526,000 units while Tesla delivered 484,000 units. However, for the whole of 2023, Tesla still sold more with 1.8m compared to nearly 1.6m for BYD, the broadcaster added.

SUCCESS STORY: CNN said that China’s fast transition to electric vehicles (EVs) is “thanks to strong government support”. The article quoted analysts from investment bank Natixis Asia saying “first-mover advantage and government support through infrastructure investment and subsidies have made it easy for Chinese EV makers to expand domestically and internationally”. (Consultant David Fishman noted on Twitter that domestic EV sales grew by 36% in 2023, “despite the end of the supporting subsidies”.) According to Bernstein research, “BYD batteries are among the lowest cost in the world”, reported the Financial Times. Michael Dunne, chief executive of Asia-focused car consultancy Dunne Insights, told the FT: “No one can match BYD on price. Period.” In his Bloomberg column, David Fickling attributed BYD’s edge to its in-house battery supply chain and cheaper cells. “More importantly”, he said, “on almost every financial metric, [BYD] is either advancing on, or overtaking [Tesla] — with its gaze already set on the wider car industry.”

FORECAST FOR 2024: Looking ahead to this year, S&P Global Mobility predicted battery electric vehicles (BEVs) sales would reach 13.3m units globally in 2024, accounting for 16.2% of total global passenger vehicle sales, with China’s BEV sales growing 28.6% year-on-year. BloombergNEF’s outlook forecast a milestone will be achieved by the end of 2024 – it will see the first quarter in which consumers buy more than five million electric or plug-in hybrid vehicles, with China being the main contributor.

Spotlight 

What to watch in 2024

In 2023, several significant energy and climate stories came out of China. Global carbon dioxide (CO2) emissions rose, driven by increases in China, but analysis for Carbon Brief found that renewable energy growth could cause a “structural decline” of emissions from 2024. New coal “capacity payments” continue policy support for the fuel. 

Meanwhile, the US and China issued the Sunnylands statement, which signalled a turning point in bilateral relations and played a part in theCOP28 outcome.

For the first China Briefing of 2024, Carbon Brief asks leading experts what they are watching for in China in the year ahead. Responses have been edited for length and clarity.

Joanna Lewis, provost’s distinguished associate professor of energy and environment, and director of the science, technology and international affairs program, Georgetown University:

The key thing I will be watching is the development of China’s new nationally determined contribution (NDC) and associated 2035 climate goals. Given the Sunnylands statement and COP28 decisions, we can expect that China’s next NDC will include the country’s first economy-wide target covering all greenhouse gases. As China’s emissions are slated to peak before 2030, it will also likely be China’s first absolute emissions target.

Beyond the NDC, I will also be watching China’s coal consumption. While consumption increased in 2023, many predict a slowing in 2024 and possible peaking by 2025 (or earlier). So watching trends over the coming year may signal what is to come. Also important to determining coal trends will be the rate of renewable energy growth. With an estimated 230GW of new wind and solar power installed in China last year – twice that of the US and Europe combined – and major advances in energy storage that are helping address the curtailment issue, China’s renewables sector is poised for continued rapid growth, which can help offset the demand for coal in the power sector.

David Fishman, senior manager, the Lantau Group:

China spent 2023 implementing incremental reforms to its power sector and energy policy – still trending in the right direction for power market decarbonisation and liberalisation, but taking smaller steps than in the previous few years. This is a return to normalcy for China, which has typically adopted a measured approach to policy reforms: preferring to make small changes and observe the outcomes of limited pilots, rather than big changes all at once.

I expect 2024 to be more of the same, with spot-trading in the power exchanges becoming more common and renewable consumption quotas expanding to more sectors. At the same time, the surging growth in renewable capacity, especially from desert mega-bases, should allow renewable generation growth to exceed power consumption growth. This will cap coal consumption in the power sector and send China’s carbon emissions into long-term structural decline from 2024 onward.

Ryna Cui, research director, Center for Global Sustainability, University of Maryland:

It is crucial to watch how coal plants will be utilised in the power system, whether as expected to back up an increasing share of intermittent renewables or to continue as “baseload” generation, where the emissions impact can be significant. It is also critical to watch whether and how China moves from a continued preference for coal to other solutions for grid stabilisation, such as cross-region grid balancing, demand-side management, battery and other storage technologies. 

Methane is an emerging area that is finally receiving the policy attention it requires – both in China and globally. China’s methane action plan is the first published national policy targeting methane as a greenhouse gas (GHG). The document is brief, setting up overall guidelines and main task areas. So it is important to watch how more detailed policies and targets will continue to develop.

Internationally, the US-China Sunnylands statement set up the expectation for the next round of NDCs to cover all GHGs and all economic sectors. It will be exciting to watch how Sunnylands and the previous joint Glasgow declaration will be implemented.

Yan Qin, lead carbon analyst at the London Stock Exchange Group:

This will be an exciting year for China’s national carbon market and the newly relaunched offset market. The national emissions trading scheme (ETS) has just completed its second compliance period, with allowance prices rising to as high as 80 yuan per tonne ($11.25/t) due to tightening of benchmarks. 

The scheme will see more progress this year, both on the regulatory side, with the newly released state council regulation on national carbon trading, and on the expansion to more industry sectors, with the first new batch possibly including the cement and aluminium sectors. We might also see more clarity on the role of the carbon market in China’s “dual carbon” targets against the backdrop of moving from energy dual control to carbon dual control. The revamped China Certified Emissions Reduction (CCER) offset market will also see issuance of new credits resume this year.

Tu Le, founder and managing director, Sino Auto Insights:

It was another record year for “new energy vehicle” (NEV, mainly electric vehicle) sales in China, largely on the back of a serious price war ignited by Tesla in January 2023. I’ll be watching to see whether the market can keep it up – and who will blink first this year. Will there continue to be foreign direct investment by Chinese electric vehicle and battery companies outside of China and, if so, where?

Chinese automakers exported a record number of vehicles in 2023, catching many observers’ attention. With the Inflation Reduction Act making the US market unattractive for now, the EU is the most attractive major market to Chinese EV firms. EU automakers will also begin shipping Chinese-built vehicles to their home markets. How the EU will ultimately react to this – and the growth of Chinese EV exports more widely – remains uncertain.

Watch, read, listen

BIG READ: China submitted its fourth national communication on climate change to the UNFCCC in December 2023 – the first since June 2019 – with sections on China’s greenhouse gas emissions by sector, “key objectives” and financial needs.

DE-RISKING RISKS: Henry Sanderson argued in Foreign Affairs that western countries must prioritise in order to compete with China on “clean energy” technologies.

WASTE UNREST: The New Books in East Asian Studies podcast interviewed Dr Jean Yen-chun Lin on research into environmental protests against waste incineration in Beijing.

CLIMATE ADAPTATION: China and Africa will “jointly promote climate resilience”, ministry of ecology and environment minister Huang Runqiu said in remarks, recently posted on YouTube, made at the September 2023 Africa Climate Summit.

New science 

Hotter days, dirtier air: The impact of extreme heat on energy and pollution intensity in China
Energy Economics

Researchers have identified a “causal impact from ‘local temperature shocks’ on pollution intensity” in China between 2008 and 2017, finding that extreme heat increases energy demand, diminishes energy efficiency and increases consumption of coal, which leads to a rise in pollution intensity. The researchers said that this shows that extreme weather caused by climate change “will perpetuate an adverse impact on pollution intensity” across China.

Methane mitigation potentials and related costs of China’s coal mines
Fundamental Research

A new study estimated that “through continuous coal cuts and available…mitigation measures, China’s [coal mine methane] emissions can be reduced by 65%-78% [from 2021 levels] in 2060”. The study also found that methane emissions from abandoned coal mines “will far exceed those from coal mining under the 2060 carbon-neutral scenario, especially in northeastern China”. While coal mine methane mitigation may not currently be economically feasible, it added, it could become “the most cost-effective solution as [carbon dioxide] prices increase”.

Who is most affected by carbon tax? Evidence from Chinese residents in the context of ageing
Energy Policy

New research has discovered “significant differences” in the rate by which different age groups in China are affected by carbon taxation, with the “vulnerable elderly” being particularly affected. The results show that the “indirect carbon payment burden rate on the elderly…is 1.2 times that of the general population”, with low-income seniors facing a slightly higher than average rate at 1.4 times that of the general population.

China Briefing is compiled by Anika Patel and edited by Wanyuan Song and Simon Evans. Please send tips and feedback to china@carbonbrief.org

The post China Briefing 11 January: Expectations for 2024; Top climate negotiator interviewed; NDRC promotes ‘green’ industry appeared first on Carbon Brief.

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Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn

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Türkiye and Australia risk losing their credibility as hosts of this year’s COP31 UN climate summit if they keep betting on fossil fuels at home, climate policy experts have warned. 

As governments are expected to continue fraught talks over how to advance the global transition away from oil, coal and gas in Antalya this November, both of the co-host countries are pursuing fossil fuel expansion at home, without a national timeline to phase out their use.

Türkiye has accelerated its rollout of wind and solar energy in recent years. But that progress has yet to make a dent in the country’s dependence on fossil fuels for power, as demand growth has outpaced the renewables build-out, new analysis by Climate Action Tracker (CAT) has found.

The share of electricity generated by burning coal and fossil gas – 56% in 2025 – has barely changed since 2019, and total fossil fuel use in the power sector, and the emissions it produces, are still rising, according to the report released on Friday.

The Turkish government has also signalled that fossil fuels will remain a central component of its energy mix and has outlined plans to expand the country’s burgeoning domestic gas production in the Black Sea.

‘Need to demonstrate seriousness’

Australia, which will chair the Antalya negotiations, relies on fossil fuels for over 60% of its electricity, with coal alone still supplying 45%. According to experts, it lacks an ambitious plan to shift away from fossil fuels at home, relying heavily on carbon offsetting to reach its climate targets.

Australia is also the world’s third-largest fossil fuel exporter and has plans to expand its coal and gas production, which is backed by significant government subsidies. It recently upset climate groups by approving an extension of the Saraji open-cut coal mine in Queensland.  

Türkiye says it has “final decision” at COP31 despite Australia running negotiations

Jennifer Morgan, a senior fellow with the Fletcher School of Law and Diplomacy at Tufts University and former climate envoy for Germany, said Türkiye and Australia need to demonstrate their seriousness about their COP presidency roles by leading by example on the energy transition.

“They have made progress in renewable energy,” she told reporters this week. “But I think their credibility – and their ability to therefore bring momentum and good outcomes to the COP – will depend on their taking further action at home.” 

Türkiye’s electrification homework

The co-hosts’ fossil fuel policies are being scrutinised in the run-up to the annual UN climate summit, with much riding on the signal climate diplomacy sends on the energy transition.

Türkiye has so far stopped short of putting any overt political capital behind the fossil fuel transition itself. It has instead been rallying support for a new global electrification target of 35% by 2035, seen as the centrepiece of this year’s non-negotiated Action Agenda put forward by Ankara.

Electrification emerges as COP31 priority

COP31 president Murat Kurum said last week the push to electrify economies – through measures like electric vehicles and heat pumps – will “automatically” lead to a reduction in the use of fossil fuels.

Türkiye’s own energy plan projects the country’s electrification rate would fall short on the global target and only hit 25% by 2035, according to the CAT report, which called for a “substantial step-change” in electrification policies and the deployment of more renewable power and grid infrastructure. 

Coal still dominant

CAT’s analysts also warned that, without a parallel phase-out of fossil fuels, rising electricity demand risks being met in part by coal and gas, failing to deliver the emissions reductions the electrification target is meant to achieve. 

Türkiye has had some success in its clean energy build-out: the share of electricity generation from wind and solar rose to 22% in 2025, up from 12% in 2020, according to the CAT report.

But coal’s role in Türkiye’s electricity mix has also grown, in both its share and absolute terms, over the past decade. And while reliance on fossil gas has declined overall, it still plays an important role in Ankara’s energy policy, which is pushing to boost domestic gas production in the Black Sea.

Pilot boats assist the Osman Gazi as it navigates the Bosphorus on its way to the Black Sea on May 29, 2025 in Istanbul, Turkey. The platform will dock at the Filyos Port in the Black Sea and will stay for a 20 year mission and will provide double the natural gas intake of Turkey to 20 million cubic meters per day. (Photo by Chris McGrath/Getty Images)

Pilot boats assist the Osman Gazi as it navigates the Bosphorus on its way to the Black Sea on May 29, 2025 in Istanbul, Turkey. The platform will dock at the Filyos Port in the Black Sea and will stay for a 20 year mission and will provide double the natural gas intake of Turkey to 20 million cubic meters per day. (Photo by Chris McGrath/Getty Images)

Dr Niklas Höhne from the NewClimate Institute said the government could demonstrate leadership as COP31 president by building on its recent successes in increasing its renewable energy capacity and announcing targets and plans to phase out coal and gas ahead of the summit.

According to CAT, Türkiye should phase out coal by 2040 and fossil gas by 2045 at the latest to align its power sector with global efforts to limit the rise in global temperatures to 1.5C above preindustrial times. 

Türkiye quiet on fossil fuel roadmap

Ümit Şahin, coordinator of climate change studies at the Istanbul Policy Center (IPM), said Türkiye’s strategy is to approach the fossil fuel debate exclusively from the “end-use point of view”.

“I don’t expect any push from the Turkish presidency to the producer countries in terms of fossil fuel production,” he told reporters.

Neither does Şahin believe the Turkish presidency will throw its political weight behind another big-ticket item for COP31: a new global roadmap to transition away from fossil fuels. 

Brazil took on the responsibility to voluntarily draft this document outside of the formal negotiations as a way to break the deadlock at last year’s UN summit in Belém when governments clashed over whether to develop one. 

The outgoing COP30 presidency will deliver the roadmap in early November – but it will be up to Türkiye and Australia to guide countries towards a decision on how the blueprint will be taken forward, either inside or outside the negotiations.

Leadership needed

Australia’s Chris Bowen, COP31’s president of negotiations, promised to lobby producing countries to deliver a “meaningful step forward” on the fossil fuel transition in an interview with The Guardian earlier this year. But he has been quiet on the role Australia sees for the fossil fuel transition roadmap. 

Natalie Jones, senior policy advisor at the International Institute for Sustainable Development (IISD), said the COP31 co-presidents “must provide clear leadership” on this process.

“This roadmap cannot be left in a dusty drawer,” she told journalists. “Rather, it must be translated into action, with all countries identifying what elements they can adopt or develop in their own national roadmap.”

    Like Türkiye, Australia has yet to produce a national blueprint for winding down coal, gas and oil. Rather than moving toward a phase-out, state and federal governments have kept expanding fossil fuel licensing over the past year, according to a new analysis published this month by Climate Analytics.

    Under existing policy, both coal and gas are on track to remain in Australia’s power system as late as 2050 – a trajectory the report defines as incompatible with the 1.5C limit the country says it’s committed to. 

    No binding end dates for the Netherlands

    Analysts are watching out for national transition roadmaps as a bellwether for governments that claim to be leaders in the global shift away from fossil fuels.

    The climate and environment ministers of Colombia and the Netherlands, which are co-hosting the Santa Marta conference, embrace on the podium during the high-level segment in Santa Marta, Colombia, April 28, 2026 (Photo: Colombia Ministry of Environment and Sustainable Development)

    The climate and environment ministers of Colombia and the Netherlands, which are co-hosting the Santa Marta conference, embrace on the podium during the high-level segment in Santa Marta, Colombia, April 28, 2026 (Photo: Colombia Ministry of Environment and Sustainable Development)

    The Netherlands, which co-hosted the first fossil fuel transition conference in Santa Marta this year, published its own domestic roadmap earlier this week. The document followed through on a pledge that “leadership on transitioning away from fossil fuels must be backed by concrete action, not just ambitious words”, said a spokesperson for Stientje van Veldhoven, the Dutch minister for climate policy.

    But experts criticised the plan for failing to set a binding end date for the country’s fossil fuel production and use. While targeting a rapid increase in renewables capacity, the Dutch government only commits to phasing out oil, gas and coal “in the energy and feedstock system to eventually zero, and to minimise fossil use” by 2050. 

    Yvo de Boer, a former Dutch diplomat and executive secretary of the UN climate body, said the Dutch roadmap falls short of what’s needed to give industry the confidence to deploy capital in support of the energy transition with greater predictability. 

    “Ultimately, a roadmap without deadlines is nothing more than a footpath paved with good intentions,” he added, writing on LinkedIn. 

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    How clean energy can boost business for Africa’s food producers

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    Despite millions of dollars in grants and technical help for African businesses to power farming and other food production activities with renewable energy, most efforts remain stuck at the early stages because they struggle to find the investors, markets and expertise they need to grow.

    This was the message from a coalition of global institutions working on energy, water and agriculture at this month’s Africa Food Systems Forum in Kigali, Rwanda.

    “Energy, agriculture, water and nutrition actors rarely design solutions together,” the Agri-Energy Coalition said in a Call to Action on powering food systems with clean energy.

    Using more renewables – especially solar power – to drive food systems would reduce food losses, ensure year-round availability and affordability of healthy foods, and improve productivity, income and resilience among farmers, food processors and other small enterprises, the coalition added.

    In an interview with Climate Home News at the forum, Olamide Niyi-Afuye, CEO of the Africa Minigrid Developers Association (AMDA) – a body representing private-sector developers of small-scale, off-grid electricity systems across the continent – said its members are starting to recognise this interdependence and are increasingly considering businesses that combine energy with agricultural activities.

      This, Niyi-Afuye added, could lead to greater supply and use of clean power for key processes like irrigation, food processing and storage, creating new sources of revenue for both sectors.

      CHN: Conversations at the Africa Food Systems Forum highlighted how organisations working in energy and agriculture often operate in silos. What has hampered their collaboration, and how has that affected Africa’s economic development?

      A: Most mini-grid companies in Africa were primarily incentivised to achieve connections. If you look at some ongoing projects, you see a cost-per-connection model [of revenue]. When a subsidy is tied to achieving a connection, regardless of whether it is a productive connection, you might not notice the problem until five years down the line, when you realise the cash flows are not what you projected.

      Despite African walkout, fractious land COP ends without drought deal

      So now we’re in a “come-to-Jesus moment” as an industry, where we’re righting the wrongs and adjusting our business models to make sure companies do not go bust and there is some level of sustainability over the long term.

      The saying is not wrong that we’ve been working in our own silos because we’ve focused on the smaller things instead of the helicopter view. There needs to be cross-pollination [between the energy and agriculture sectors] because, if we are thinking about industrialisation, energy is a key driver of industrialisation. We will not achieve that if we’re not in the room and part of those conversations.

      CHN: Productive use of energy is intended to ensure electricity access goes beyond lighting homes to improving livelihoods, creating jobs and powering equipment. But what happens when farmers cannot afford the equipment they need to do that? How can energy, agriculture and equipment players work together to make the transition more accessible?

      A: That’s why we’re having conversations with companies set up to de-risk the agriculture sector. By leveraging that connection, we’re able to aggregate potential energy needs and develop instruments that make equipment more affordable through bulk procurement.

      We can have arrangements that make it easier for farmers and food producers to lease equipment and eventually own it over a period. There’s no real pressure to recover the capital very quickly because you’re looking at scale.

      Rice farmer Danjuma Okuwa adjusts his newly installed electric rice milling machine at his compound in Rukubi, Nasarawa, Nigeria, September 27, 2022. (Thomson Reuters Foundation/Afolabi Sotunde)

      Rice farmer Danjuma Okuwa adjusts his newly installed electric rice milling machine at his compound in Rukubi, Nasarawa, Nigeria, September 27, 2022. (Thomson Reuters Foundation/Afolabi Sotunde)

      There is a whole lot across the agricultural value chain that needs energy, from farming and harvesting to food processing and value-addition. We need to understand the energy needs across the value chain and bring our members in to provide solutions.

      Developers do not necessarily need to provide every productive-use solution themselves. They can partner with equipment suppliers, financiers, agribusinesses and other service providers to enable customers to use electricity productively. The objective is simple: do not just electrify communities; enable economic activity that uses that electricity.

      CHN: When Africa’s industrialisation is discussed, you hear things like renewables cannot provide enough baseload, while some food processors are sceptical about switching to renewable energy because of these concerns about reliability. What is your response?

      A: It’s not a controversial statement to say that a typical baseload is usually from the grid, and it’s usually from multiple sources including renewable energy. For large-scale operations, we can look at blending multiple sources of energy. But how do we solve the problem of a mid-sized farmer? We can solve it with a mini-grid using renewable energy.

      Comment: Every country needs a model to help optimise its energy transition

      If you go to a small farmer in a rural area, they don’t care about what source of energy they’re getting. They just want something that can help them get from A to B. If you look at the direct energy needs of farmers and food processors, I’m sure 90 percent of their consumption can be solved by renewable energy. Let’s start with that problem first. Then, as they scale, they might need to ramp up, and we can start talking about a bigger baseload.

      CHN: How much agricultural value is lost because farmers and food businesses lack reliable, affordable electricity?

      A: If you look at, for example, the fact that we need to maybe plant tomatoes or strawberries in Jos before it gets to Lagos [Nigeria], which most likely is by road, I can assure you that a good chunk, if not stored properly, would be bad by then. So the fact that we do not have energy is in itself a lost opportunity to maximise the potential of the agriculture sector. So until we’ve solved the energy problem, we will not salvage waste – and for me that is a lost opportunity.

      CHN: AGRA, an institution focused on scaling agricultural innovations to help smallholder farmers, estimates a massive shortfall between current investments in the continent’s food systems and what is actually needed to build a resilient, profitable agricultural economy – to the tune of $180 billion per year. Can integrating energy into food systems help bridge that gap?

      A: Yes – if energy can help unlock the potential to earn more money, investors will follow the money. Investments go where there is certainty, and until there is certainty around cash flow and revenue, investment will be limited.

      My vision is to see more Power Purchase Agreements (PPAs) being signed between energy players and the agriculture sector. We can start by getting people into the room, understanding their pain points, crafting a framework and documentation that works for both parties, and then seeing deals happen.

      This interview was shortened and edited for clarity.

      The post How clean energy can boost business for Africa’s food producers appeared first on Climate Home News.

      How clean energy can boost business for Africa’s food producers

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      Climate Change

      Human security relies on adapting to the world’s new climate reality

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      Cristina Rumbaitis del Rio is a senior advisor on adaptation and resilience with the United Nations Foundation and Mattias Söderberg is global climate lead at Danish NGO DanChurchAid.

      Recent extreme events – from wildfires and heatwaves in Europe to flash flooding following a glacier collapse in Nepal – have shocked and devastated communities, bringing years of warnings about such climate impacts to the doorstep of communities around the world.

      One thing is certain: the new climate reality is here – and the adaptation strategies designed for yesterday’s world are no longer sufficient.

      Attribution science has since shown that the hotter and more frequent heatwaves we’re experiencing around the world would have been virtually impossible without today’s high concentrations of greenhouse gases in the atmosphere. Climate shocks are now so severe that they reverberate through supply chains, food and water systems, financial markets and the movement of people.

        They must be a catalyst for a new way of thinking about adaptation and resilience, and how we finance solutions that work. A failure to invest in adaptation in one region can create costs far beyond it, which is why the concept of shared resilience is critical for leaders to grasp.

        Investment not charity

        At the UN General Assembly (UNGA 81) this month, leaders have an opportunity to translate today’s urgency into concrete commitments on adaptation and loss and damage finance ahead of COP31.

        Those commitments are needed to underpin global stability, shared prosperity and human security. Governments should use this moment to show what a new response looks like: finance that reaches communities faster, supports locally grounded solutions, strengthens national systems, and helps countries prepare before the next shock arrives.

        If we want sustained economic growth, food and water security, and resilient and prosperous societies across every region, adaptation must be at the heart of today’s development and security agenda. It cannot be just a future planning consideration or a narrow issue for climate ministries. Adaptation is now everyone’s business – and it must be financed fast and fair.

        UN Secretary-General António Guterres has repeatedly framed climate finance as an investment rather than charity, warning that “a world in climate chaos cannot be a world at peace” and describing human security as freedom from the chronic and sudden disruptions that climate change multiplies.

        What’s more, adaptation delivers a real return-on-investment, with researchers estimating that every dollar invested produces $10 in benefits, saving lives, protecting livelihoods, and reducing the costs of future disasters.

        Hitting adaptation limits

        The urgency to scale adaptation systematically is growing. The newly released “Limiting Overshoot” report from the UN Environment Programme (UNEP) confirms what scientists have long warned: exceeding global warming of 1.5C is now unavoidable under current policies. Yet, how high temperatures rise – and how long the world remains above the 1.5C threshold – will determine whether communities, economies and entire ecosystems can keep pace.

        There are limits to adaptation. When we breach those limits, lives and livelihoods are lost, and people and ecosystems suffer greatly. We cannot simply build yesterday’s infrastructure a little stronger and assume it will be enough.

        Nepal flood destruction shows “limits to adaptation”, scientists say

        We need to fundamentally change the systems that determine how societies anticipate, absorb and recover from both immediate and evolving non-linear climate shocks. This includes transforming physical systems, such as infrastructure, and the governance systems that affect where and how we live to how we maintain our health and wellbeing.

        Finance today is nowhere near the scale of the challenge.

        The UNEP “Adaptation Gap Report 2025” estimates the shortfall in adaptation finance in developing countries at $284 billion–$339 billion a year – roughly 12 to 14 times current international public flows of around $26 billion. That gap is a development, economic and human security problem, especially for the most vulnerable populations who have contributed the least to causing the climate crisis.

        Building resilience into financial systems

        There are already signs of what a more systemic adaptation response could look like. Communities around the world are delivering practical solutions at local level, even as adaptation finance remains notoriously, and appallingly, difficult to access. Cyclone-resistant homes, local forecasting capacities, drought-resistant crops, heat insurance for pregnant informal workers and mangrove restoration are rooted in local knowledge and lived experience, while delivering benefits far beyond the communities where they originate from.

        But local innovation alone is not enough; the systems around it need to be resilient too.

        Jamaica offers one example. The country has built a multi-layered disaster-risk financing framework, including a catastrophe bond and contingency funds, through sustained fiscal discipline and proactive investment. Its debt-to-GDP ratio fell from around 147% in 2012 to around 62% in 202-25. That groundwork matters when disaster strikes.

        Hurricane Melissa’s destruction shows need for climate resilience push

        Following Hurricane Melissa, Jamaica was able to secure billions of dollars in reconstruction financing from multilateral banks – finance that might otherwise have been much harder to access. The lesson is clear: resilience can be built into the financial architecture of a country before a crisis arrives. That is the shift we now need to make at scale.

        The foundations already exist – in Kingston’s fiscal reforms, in early-warning systems from the Sahel to the Pacific, and in every community that adapted before disaster struck. What is still missing is the political will, and the finance, to take what works and put it to work everywhere, at the speed our world’s new climate reality demands.

        To hear more on this issue from high-level officials and experts, sign up for this event during Climate Week NYC, at 8am EDT on September 24 (in person or online), moderated by Climate Home News Editor Megan Rowling: Adapting to the New Climate Reality: Why Accelerating Impacts Demand New Responses.

        The post Human security relies on adapting to the world’s new climate reality appeared first on Climate Home News.

        Human security relies on adapting to the world’s new climate reality

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