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China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.
Key developments
100% tariffs imposed on Chinese EVs following climate envoy meetings
FIRST MEETING: The recently appointed Chinese and US climate envoys Liu Zhenmin and John Podesta met in Washington last week with an aim to build on the “Sunnylands statement” that had restored engagement between presidents Xi Jinping and Joe Biden at their summit last year, the Hong Kong-based South China Morning Post reported. At the meeting, Podesta raised issues with Liu including “Chinese overcapacity in solar and battery manufacturing, steel production and coal power”, according to Reuters, adding that “the tone of the talks continued to be cordial”. State-run newspaper China Youth Daily reported comments from Chinese foreign ministry spokesperson Wang Wenbin saying that the US “expresses willingness to strengthen cooperation with China in addressing climate change”.
100% TARIFFS: Just after Liu’s US visit concluded, Biden announced significant new tariffs on a range of Chinese imports, reported Bloomberg. The outlet quoted Biden saying: “When you [China] make tactics like this, you’re not competing, it’s not competition, it’s cheating. And we’ve seen damage here in America.” According to a breakdown published by Reuters, tariffs on Chinese electric vehicles (EVs) will quadruple to 100% (plus a separate 2.5% tariff), while solar cell tariffs will double to 50%, lithium-ion EV battery tariffs will increase from 7.5% to 25% and tariffs on critical minerals rise from nothing to 25% this year.
MEDIA REACTION: New York Times’ columnist Paul Krugman supported the increased tariffs, saying: “Why not just buy cheap Chinese batteries? Political economy…The Biden administration was able to get large subsidies for renewable energy only by tying those subsidies to the creation of domestic manufacturing jobs. If those subsidies are seen as creating jobs in China instead, our last, best hope of avoiding climate catastrophe will be lost.” However, another New York Times’ comment article by economists Gernot Wagner and Conor Walsh asked the US to not “slam the door on inexpensive Chinese electric vehicles”. Bloomberg columnist David Fickling commented that “Chinese clean tech is not the enemy”, adding “from all the talk of Chinese ‘overcapacity’ coming out of Washington, you might think that the problem of addressing climate change had already been solved…We’ll need all [western nations’] industrial might – plus that of China, and a whole host of countries besides – to get there.” An editorial in the Economist called the tariffs a “bad policy, worse leadership”, saying they “will bring underappreciated economic harms to America and the world”.
CHINA REACTION: The Chinese foreign minister Wang Yi said that the tariffs are the “most typical form of bullying in the world today”, adding “it shows that some people in the US have reached the point of losing their minds in order to maintain their unipolar hegemony”, Reuters reported. State-run newspaper China Daily quoted foreign ministry spokesperson Wang Wenbin saying that the US is “making double standards by justifying its own subsidies and exports, while accusing other countries’ subsidies and exports as ‘unfair’ and ‘overcapacity’”. State broadcaster CCTV reposted a statement by the Ministry of Commerce which says that the US move is “a clear example of political manipulation”.
State-backed media disputes US ‘overcapacity’ argument
PEOPLE’S DAILY: The Communist party-affiliated People’s Daily published comments under the nom-de-plume “Zhong Caiwen”, which is likely linked to the party’s Central Financial and Economic Affairs Commission, on 7, 8, 9, 10, 12 and 13 May about China’s manufacturing production capacity under the background of “the US trying its best to exaggerate the so-called ‘overcapacity’ of China’s new energy resources”. The articles claimed that the “overcapacity arguments are designed to ‘curb and suppress China’s superior industries’”, “ignore[ing] the benefits that Chinese products bring to global consumers”, while stressing the contributions China made to tackling climate change.
ECONOMIC DAILY: Meanwhile, state-run media outlets Xinhua, Guangming Daily and Economic Daily carried similar opinions. The Economic Daily, which according to its own introduction, plays an “important role for the communist party’s Central Committee and the State Council in guiding the public opinion towards economy”, ran the headline, “Refuting ‘the theory of overcapacity in new energy’”, on its 6 May frontpage and, “Refuting ‘the theory of overcapacity in new energy’ again”, on the frontpage of 13 May. The two articles argued that the rapid growth in China is “not blind expansion”, but is based on the “urgent need to reduce global carbon emissions” and that the US uses it as “an excuse for more trade barriers”.
DOMESTIC FACTORS: Founder of H&S Capital and former news editor of BBC News Chinese Howard Zhang told Carbon Brief that this “sudden media storm” came “at a time of rising discontent over economic downturn and huge youth unemployment [in China]”. He added that “these anti-West reports help to divert public opinions and reinforce the government’s conspiracy theory that the West, led by the US, is trying to ‘stop China from rising up’ and is trying to ‘choke China off’”. Zhang acknowledged that China “does have a point”, but added it was “worth noting that these reports do not really report on Western concerns objectively and these reports are still mainly targeting the domestic audience”.
INTERNATIONAL OUTLOOK: Isabel Hilton, founder of London-based NGO Dialogue Earth (formerly China Dialogue) told Carbon Brief that the reason behind China arguing its “predominance in key industrial areas was not the result of unfair subsidies”, but because “it is unlikely that either the EU or the US will allow important industrial sectors to be undermined in what they see as unfair completion, with all the political and economic damage that would follow. Hence, the Chinese need to argue that it is not unfair.” Hilton, a visiting professor at King’s College London, added that a key point made by the Chinese media commentary was “China’s model of industrial development is no different from that of Western industrialised countries and that, further, they obey WTO rules and do not restrict or protect their own market…we can debate quite a lot of this, especially the market access point”.
Xi rebuts overcapacity and endorses climate cooperation during visiting Europe
OVERCAPACITY TENSIONS: On 5 May, president Xi commenced a five-day visit to Europe, which he began by meeting French president Emmanuel Macron and European Commission president Ursula von der Leyen, Agence France-Presse reported. The newswire quoted von der Leyen saying the EU “cannot absorb massive over-production of Chinese industrial goods”. In comments covered by the People’s Daily, Xi responded that “there is no such thing as ‘China’s overcapacity problem’”. Meanwhile, China and France signed the “Sino-French joint declaration on strengthening cooperation on biodiversity and the oceans: Kunming-Montreal to Nice”, to deepen cooperation on biodiversity protection, People’s Daily reported.
PRE-READ: Le Figaro published an article by Xi ahead of his arrival in France, in which he noted that Sino-French cooperation “spearheaded cooperation in aviation and nuclear energy”. He added: “Our two countries can deepen cooperation on innovation and jointly promote green development…The Chinese government supports more Chinese companies in investing in France. And we hope that France will ensure that they operate in a fair and equitable business environment.” State newswire Xinhua published an official English translation of the piece.
OTHER COUNTRIES: Meanwhile, Xi also visited Serbia and Hungary, where the South China Morning Post said he “upgraded relations with China’s two closest allies in Europe”. German chancellor Olaf Scholz did not meet Xi in person, but told journalists at a press conference that there are “many overlaps” between China and western automotive manufacturers, Reuters reported. State-run outlet Reference News quoted the German federal minister for digital affairs and transport saying “we don’t want to close off markets” to Chinese EVs.
EU SOLAR PROBE: Following the EU’s launching of a probe into Chinese solar companies last month, Longi and Shanghai Electric withdrew tenders to supply a Romanian solar park in “the latest sign that the EU’s new anti-subsidy powers are having a deterrent effect” on companies suspected of receiving Chinese subsidies, the Financial Times said. It quoted the EU internal markets commissioner saying the regulation ensures “foreign companies which participate in the European economy do so by abiding [by] our rules”.
China’s low-carbon energy boost
NEW DATA: China’s state broadcaster CCTV reported that China’s electricity generation from wind and solar increased 25% year-on-year in the first quarter of 2024. In the same period, electricity generated from coal declined. According to data from National Energy Administration (NEA), the total solar capacity in the first quarter of 2024 reached 45.7 gigawatts (GW), China Energy Net reported. In addition, China’s low-carbon electricity capacity will be enlarged with the State Council approving the construction of a 2GW offshore solar project at Lianyungang city, economic newswire Jiemian reports. Once being constructed, it will connect with eight existing nuclear power plants and become a 10GW “mega” renewable energy project, added the outlet.
NEW RESEARCH: A new paper covered by Carbon Brief found that China’s rising electricity demand can be met more cheaply through a combination of solar plus battery storage than by building new coal capacity. Carbon Brief also covered a study by the China Energy Transformation Program, a project under China’s Energy Research Institute, that finds electrification, greater energy efficiency and a low-carbon power system could help China develop a net-zero emissions energy system by 2055, five years earlier than its “dual carbon” goal planned.
Spotlight
Interview: China’s renewables ‘pave the way to rapidly reduce coal reliance’
A new report by Australia-based thinktank Climate Energy Finance argues that China could reach its “dual carbon” climate goals earlier than planned.
Carbon Brief interviews the author of the report to find out more. The questions and their answers are edited for length and clarity. The whole interview is available on Carbon Brief’s website.
Carbon Brief: Your report concluded that China’s coal power output will soon peak and decline – despite rising coal capacity – thanks to the rapid rise of clean energy sources. How widely do you think that potential tipping point is understood, both within China and internationally?
Xuyang Dong: This potential is not being understood or acknowledged enough both within China and internationally. China is prioritising energy security over the need to reduce coal-use…Concurrently, China is increasing renewable energy capacity at a staggering pace that far outstrips every other nation on the planet.
Internationally, news headlines continue to emphasise that China is building new coal-fired power plants, leading to a lack of confidence about China’s commitment to decarbonising its national electricity grid…However, the picture is more positive when we look at installed capacity. At the end of March this year, 53% of China’s installed capacity was zero-emissions.
CB: If China is to announce more ambitious climate goals and expand renewable energy like you suggested in the report, in your opinion, what are the barriers?
XD: We are aware there are concerns over China’s land use as a major constraint for building more wind and solar farms. We have run a case study on a 1.5GW solar project being built in the Tengger Desert in Ningxia Province. The project has 3.5 million solar modules installed, and only took up 0.1% of the total desert. In our model, we estimate that China needs to install a total of 5,405GW of new solar capacity to reach its dual-carbon targets and that may require only 11% of a total land area of the Gobi Desert, a neighbouring desert to Tengger.
The real challenge is that… more transmission lines are needed to maximise the renewable energy generation potential of China’s desert areas, and to resolve China’s land use constraints in the east coast.
CB: What do you think about policy support?
XD: I think being more ambitious in the overall climate target would be a good start… Considering its political system is “top-down”, a more ambitious target could help the central government to give out more mandates, build better transmission lines and distribute the generated power into the areas that are needed.
Internationally, China needs to align with other developed countries to take its responsibilities as the leading renewable superpower, and the carbon price would be an important policy lever… A further driver would be for other nations to also catch up with China’s staggering renewable expansion, and start to emulate its speed and scale, so there will be no excuse left for China to do less.
CB: What do you think about China’s “new three” – solar, batteries and EV – and how they help China in energy transition and economy?
XD: The “new three” has played a very huge part in China’s economic growth [in 2023]…I know there are a lot of concerns about this overcapacity in the industry, such as in the EU and the US, and I think for China to address the concerns over industrial overcapacity, it needs to, first, stimulate domestic demand and deployment of solar and wind farms, energy storage systems buildout and EV sales. Secondly, China could use its cheap renewable exports to help emerging markets and developing economies to build more renewable energy capacity, boosting and accelerating the global energy transition. Finally, it should be collaborating on joint ventures with European and US investors to build local factories.
Watch, read, listen
ENVIRONMENT ‘SPY’: The South China Morning Post reported that China’s top spy agency claimed two foreign NGOs and foundations had stolen “environmental data” from China.
FLOODING AI: A new artificial intelligence (AI) model was developed by Chinese scientists to forecast flood risks and monitor hydrological conditions even in basins lacking hydrological records, another South China Morning Post article reported.
NEA COMMENT: The Communist party-affiliated magazine Current Affairs Report published an article written by the head of China’s National Energy Administration (NEA), Zhang Jianhua, about “high-quality development of new energy”.
G7’S STRATEGIES: EU-China environmental cooperation specialist Arvea Marieni wrote a comment on G7’s climate strategies for China’s state broadcaster CGTN.

In April 2024, nearly half of cars sold in China were electric vehicles (EVs) or plug-in hybrids (PHEVs), which are known collectively as “new-energy vehicles” (NEVs). According to figures from the China Passenger Car Association (CPCA), NEVs made up 44% of sales in April, up from 34% a year earlier and just 4% during the same month in 2020.
New science
Impact of flowering temperature on lychee yield under climate change: a case study in Taiwan
Climate Services
A decline in the number of cooler days as a result of climate change could make existing varieties of lychee “unsuitable for cultivation in production areas in southern Taiwan”, a new study says. With some lychee farmers in Taiwan already experiencing economic losses as the climate warms, the researchers project a decline in lychee yields per hectare of 12-35% by the end of the century.
China Briefing is compiled by Wanyuan Song and Anika Patel. It is edited by Wanyuan Song and Dr Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 16 May 2024: Biden’s 100% tariffs on Chinese EV; State media pushback; Xi’s Europe trip appeared first on Carbon Brief.
Climate Change
Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition
Indigenous leaders from across the Amazon have warned that stopping the expansion of oil drilling into their territories will be a crucial test for a growing international coalition committed to transitioning away from fossil fuels.
As 60 countries discussed at a landmark conference in Santa Marta, Colombia, pathways to end the world’s reliance on fossil fuels, Indigenous groups said the process risks losing credibility if governments continue opening new oil frontiers in the Amazon.
Their central demand was the establishment of fossil fuel “exclusion zones” across Indigenous territories and biodiverse areas of the rainforest, permanently barring new oil and gas expansion in one of the world’s most critical ecosystems. Indigenous representatives proposed establishing protected “Life Zones”, which they said would provide legal safeguards against governments and companies seeking to expand extraction into their lands.
But Indigenous delegates left the conference frustrated as the final synthesis report drafted by co-chairs Colombia and the Netherlands failed to include the proposal.
In a statement at the end of the conference, Patricia Suárez, from the Organization of Indigenous Peoples of the Colombian Amazon (OPIAC), said formally declaring Indigenous territories – especially those inhabited by peoples in voluntary isolation – as exclusion zones for extractive industries was “an urgent measure”.
“If the heart of the conference does not begin there, it risks remaining a set of good intentions that fails to respond to either science or our Indigenous knowledge systems,” she added.
Pushing for a new oil frontier
Campaigners say the pressure on the Amazon is intensifying just as scientists warn the rainforest is nearing irreversible collapse. Around 20% of all newly identified global oil reserves between 2022 and 2024 were discovered in the Amazon basin, fuelling renewed interest from governments and companies seeking to develop the region as the world’s next major oil frontier.
Ecuador has moved ahead with the auction of new oil blocks in the rainforest, while the country’s right-wing president Daniel Noboa has promoted the region as a “new oil-producing horizon” and backed efforts to expand fracking with support from Chinese companies.
In Santa Marta, a coalition of seven Indigenous nations from Ecuador issued a declaration condemning the government, which did not participate in the conference.
“While the world talks about energy transition, our government is pushing for more oil in the Amazon,” said Marcelo Mayancha, president of the Shiwiar nation. “Throughout history, we have always defended our land. That is our home. We will forever defend our territory.”
Indigenous groups also warned that Peru – another South American nation absent from the conference – plans to auction new oil blocks in the Yavarí-Tapiche Territorial Corridor, a highly sensitive region along the Brazilian border that contains the world’s largest known concentration of Indigenous peoples living in voluntary isolation.
COP30 host under scrutiny
Indigenous leaders also criticised Brazil, arguing that despite its international climate leadership, the country is simultaneously advancing major new oil projects in the Amazon region.
Luene Karipuna, delegate from Brazil’s coalition of Amazon peoples (COIAB), said the oil push threatens the stability of the rainforest. Not far from her home, in the northern state of Amapá, state-run oil giant Petrobras is currently exploring for new offshore oil reserves off the mouth of the Amazon river.
Brazil participated in the Santa Marta conference and was among the countries that first pushed for discussions on transitioning away from fossil fuels at COP negotiations. Yet the country is also planning one of the largest expansions in oil production in the world, according to last year’s Production Gap report.
Veteran Brazilian climate scientist Carlos Nobre told Climate Home that the country’s participation at the Santa Marta conference contrasted with its oil and gas production targets. “It does not make any sense for Brazil to continue with any new oil exploration,” he said, and noted that science is clear that no new fossil fuels should be developed to avoid crossing dangerous climate tipping points.
He added that the Brazilian government faces pressures from economic sectors, since Petrobras is one of the countries top exporting companies. “They look only at the economic value of exporting fossil fuels. Brazil has to change.”
The COP30 host also promised to draft a voluntary proposal for a global roadmap away from fossil fuels, which is expected to be published before this year’s COP31 summit.
“In Brazil, that advance has caused so many problems because it overlaps with Indigenous territories. Companies tell us there won’t be an impact, but we see an impact,” Karipuna said. “We feel the Brazilian government has auctioned our land without dialogue.”
For Karipuna and other Indigenous leaders, establishing exclusion zones across the Amazon is no longer just a regional demand, but a prerequisite to prevent the collapse of the rainforest.
“That’s the first step for an energy transition that places Indigenous peoples at the centre,” she added.
The post Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition appeared first on Climate Home News.
https://www.climatechangenews.com/2026/05/08/indigenous-amazon-oil-expansion-fossil-fuel-phase-out-coalition-santa-marta/
Climate Change
Kenya seeks regional coordination to build African mineral value chains
African leaders have intensified calls for governments to stop exporting raw minerals and step up efforts to align their policies, share infrastructure and coordinate investment to add value to their resources and bring economic prosperity to the continent.
In a speech to the inaugural Kenya Mining Investment Conference & Expo in Nairobi this week, Kenyan President William Ruto became the latest African leader to confirm the country will end exports of raw mineral ore. The East African nation has deposits of gold, iron ore and copper and recently launched a tender for global investors to develop a deposit of rare earths, which are used in EV motors and wind turbines, valued at $62 billion.
Kenya is among more than a dozen African nations that have either banned or imposed export curbs on their mineral resources as they seek to process minerals domestically to boost revenues, create jobs and capture a slice of the industries that are producing high-value clean tech for the energy transition.
“For too long we have extracted and exported raw materials at the bottom of the value chain, while others have processed, refined, manufactured and captured the greater share of economic value,” Ruto told African ministers and stakeholders gathered at the mining investment conference in Nairobi.
As a result, Africa currently captures less than 1% of the value generated from global clean energy technologies, he said. To address this, Kenya, in collaboration with other African nations, “will process our minerals here in the continent, we will refine them here and we will manufacture them here”, he added.
Mineral export restrictions on the rise
Africa is a major supplier of minerals needed for the global energy transition. The continent holds an estimated 30% of the world’s critical mineral reserves, including lithium, cobalt and copper. The Democratic Republic of Congo produces roughly 70% of global cobalt, a key ingredient in lithium-ion batteries, while countries such as Guinea dominate bauxite production, and Mozambique and Tanzania hold significant graphite deposits.
But African governments have struggled to attract the investment needed to turn their vast mineral wealth into a green industrial powerhouse. Recently Burundi, Malawi, Nigeria and Zimbabwe are among those that have resorted to banning the export of unrefined minerals to incentivise foreign companies to invest in value addition locally.
Outdated geological data limits Africa’s push to benefit from its mineral wealth
This week, Zimbabwe exported its first shipments of lithium sulphate, an intermediate form of processed lithium that can be further refined into battery-grade material, from a mine and processing plant operated by Chinese company Zhejiang Huayou Cobalt.
After freezing all exports of lithium concentrate – the first stage of processing – earlier this year, the government introduced export quotas and will ban all exports from January 2027.
Export restrictions on critical raw materials have grown more than five-fold since 2009, found a report by the Organisation for Economic Co-operation and Development (OECD) published this week. In 2024, a more diverse group of countries, including many resource-rich developing economies in Africa and Asia, introduced restrictions, including Sierra Leone, Nigeria and Angola.

This is “a structural shift in the wrong direction,” Mathias Cormann, the OECD’s secretary-general, told the organisations’ Critical Minerals Forum in Istanbul, Turkey, this week.
“We understand the motivations: building local industries, managing environmental impacts, capturing greater value domestically. But our research is quite clear. Export restrictions distort investment, reduce volumes and undermine supply security often while delivering limited gains in value added,” he said.
In-country barriers to success
Thomas Scurfield, Africa senior economic analyst at the Natural Resource Governance Institute, told Climate Home News that export restrictions “can look like a promising route to local value addition” for cash-strapped African mineral producers but have “rarely worked” unless countries already have reliable energy, infrastructure and competitive costs for processing.
“Without those conditions, bans may simply push companies to scale back mining rather than scale up processing,” he said.
Alaka Lugonzo, partnerships lead for Africa at Global Witness, identified gaps in practical skills and infrastructure as other major barriers. “You need engineers, geologists, marketers,” Lugonzo said, warning that graduates are increasingly unable to match the pace of industry change.
On infrastructure, she said that plentiful and stable energy supplies are vital and while Kenya has relatively robust road networks, they are insufficient for industrial-scale operations.
“Meaningful value addition and real industrialisation requires heavy machinery… and you will need better infrastructure,” she said, highlighting persistent last-mile challenges in mining regions where “there’s no railway, there’s no electricity, there’s no water”.
Export capacity is another concern, she said, particularly whether existing port systems could handle increased volumes of processed minerals.
Regional approach recommended
Scurfield said that through regional cooperation – including pooling supplies, specialising across different stages of refining and manufacturing, and building larger regional markets – “African countries could overcome many domestic constraints that make going alone difficult”.
That’s what close to 20 African governments are working to deliver as part of the Africa Minerals Strategy Group, which was set up by African ministers and is dedicated to foster cooperation among African nations to build mineral value chains and better benefit from the energy transition.
Africa urged to unite on minerals as US strikes bilateral deals
Nigerian Minister of Solid Minerals Dele Alake, who chairs the group, said “true collaboration” between countries, including aligning mining policies, sharing infrastructure, coordinating investment strategies and promoting trade across the continent, will create the conditions for long-term investments that could turn Africa into “a formidable and competitive force within the global mineral supply chain”.
“The time has come for Africa to redefine its place within the global mineral economy and that transformation must begin with regional integration and regional cooperation,” he told the mining investment conference in Nairobi.
Lugonzo of Global Witness agreed, saying that value-addition would benefit from adopting a continental perspective. “Why should Kenya build another smelter when we can export our gold to Tanzania for smelting, and then we use the pipeline through Uganda to take it to the port and we export it?” she asked.
To facilitate that, there is a need to operationalise the Africa Free Trade Continental Agreement (AFTCA), she added. “That agreement is the only way Africa is going to move from point A to point B.”
The post Kenya seeks regional coordination to build African mineral value chains appeared first on Climate Home News.
https://www.climatechangenews.com/2026/04/30/kenya-seeks-regional-coordination-to-build-african-mineral-value-chains/
Climate Change
Key green shipping talks to be held in late 2026
The future of the global shipping industry – and its 3% share of global emissions – will be decided in three weeks of talks in the third quarter of this year, after a decision taken in London on Friday.
At the International Maritime Organisation (IMO) headquarters this week, governments largely failed to substantively negotiate a controversial set of measures to penalise polluting ships and reward vessels running on clean fuels known as the Net-Zero Framework. The green shipping plan has been aggressively opposed by fossil fuel-producing nations, in particular by the US and Saudi Arabia.
This week, countries delivered statements outlining their views on the measures in a session that ran from Wednesday into Thursday. Then, late on Friday afternoon, they discussed when to negotiate these measures and what proposals they should discuss.
After a lengthy debate, which the talks’ chair Harry Conway joked was confusing, governments agreed to hold a week of behind-closed-door talks from 1 September to 4 September and from 23 November to 27 November.
Following these meetings, which are intended to negotiate disagreements on the NZF and rival watered-down measures proposed by the US and its allies, there will be public talks from November 30 to December 4.
Last October, talks intended to adopt the NZF provisionally agreed in April 2025 were derailed by the US and Saudi Arabia, who successfully persuaded a majority of countries to vote to postpone the talks by a year.
Those talks, known as an extraordinary session, are now scheduled to resume on Friday December 4 unless governments decide otherwise in the preceding weeks. While this Friday session will be in the same building with the same participants as the rest of the week’s talks, calling it the extraordinary session is significant as it means the NZF can be voted on.
Em Fenton, senior director of climate diplomacy at Opportunity Green said that the NZF “has survived but survival is not a victory” and called for it to be adopted later this year “in a way that maintains urgency and ambition, and delivers justice and equity for countries on the frontlines of climate impacts”.
NZF’s supporters
The NZF would penalise the owners of particularly polluting ships and use the revenues to fund cleaner fuels, support affected workers and help developing countries manage the transition.
Many governments – particularly in Europe, the Pacific and some Latin American and African nations – spoke in favour of it this week.
South Africa said the fund it would create is “the key enabler of a just transition” and its removal would take away predictable revenues from African countries. Vanuatu said that “we are not here to sink the ship but to man it”.
Australia’s representative called it a “carefully balanced compromise”, as it was provisionally agreed by a large majority after years of negotiations, and warned that failing to adopt it would harm the shipping industry by failing to provide certainty.
Santa Marta summit kick-starts work on key steps for fossil fuel transition
Canada’s negotiator said that if it was weakened to appease its critics like the US and Saudi Arabia, this would disappoint those who think it is too weak already like the Pacific islands.
A large group of mainly big developing countries like Nigeria and Indonesia did not rule out supporting the framework but called for adjustments to help developing countries deal with the changes. Nigeria called for developing countries to be given more time to implement the measures, a minimum share of the fund’s revenues and discounts for ships bringing them food and energy.
According to analysis from the University of College London’s Energy Institute, the countries speaking in support of the NZF include five countries which voted with the US to postpone talks in October and a further ten countries which did not take a clear position at that time. Most governments support the NZF as the basis for further talks, the institute said.
Opposition remains
But a small group of mainly oil-producing nations said they are opposed to any financial penalties for particularly polluting ships.
They support a proposal submitted by Liberia, Argentina and Panama which has proposed weakening emission targets and ditching any funding mechanism for the framework involving “direct revenue collection and disbursement”.
Argentina argued that the NZF would harm countries which are far from their export markets and said concerns over that cannot be solved “by magic with guidelines”. They added that, as a result, the NZF itself needs to be fundamentally re-negotiated.
The UCL Energy Institute said that just 24 countries – less than a quarter of those who spoke – said they supported Argentina’s proposal.
While this week’s talks did not see the kind of US threats reported in October, their delegation did leave personalised flyers on every delegate’s desk which were described by academics, negotiators and climate campaigners as misleading.
One witness told Climate Home News that junior US delegates arrived early on Wednesday and placed flyers behind governments’ name plates warning each country of the costs they would incur if the NZF is adopted.
The figures on a selection of leaflets seen by Climate Home News ranged from $100 million for Panama to $3.5 billion for the Netherlands. “They are trying to scare countries away from supporting climate action with one-sided information”, one negotiator told Climate Home News.

They added that the calculations, by the US State Department’s Office of the Chief Economist, ignore the fact that the money raised would be shared to help poorer countries’ transition as well as ignoring the economic costs of failing to address climate change.
Tristan Smith, an academic representing the Institute of Marine Engineering, Science and Technology, told the meeting that the calculations were “opaque” and flawed as they overstate the contribution of fuel cost to trade costs.
A US State Department Spokesperson said in a statement that they “firmly stand behind our estimates” which were shared “in good faith” and to “provide an additional tool to policymakers as they contemplate the true economic burden over the NZF”.
The post Key green shipping talks to be held in late 2026 appeared first on Climate Home News.
https://www.climatechangenews.com/2026/05/01/key-green-shipping-talks-to-be-held-in-late-2026/
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