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Welcome to Carbon Brief’s China Briefing.

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

Key developments

China’s equipment ‘trade-in’ act could reduce emissions

EQUIPMENT UPGRADE: On 13 March, the State Council, China’s top administrative authority, released an action plan to “promote the large-scale renewal of equipment and the trading-in of consumer goods”, reported state news agency Xinhua. According to the official document, “the scale of equipment investment, in areas including industry, agriculture, construction, transportation, education, culture, tourism and medical care, is planned to increase by more than 25% by 2027 compared with last year”. The upgrade in “key industries” will also help “reduce emissions” and “increase efficiency”, the document said. Chinese financial outlet Yicai said that, under the plan, the government also aims to double the volume of scrapped cars being recycled and increase the recycling of household appliances by 30%. 

DOMESTIC DEMAND: Bloomberg said that the equipment upgrade action plan was a “pillar” of the government’s plan for economic expansion: “The programme will get support from the central government budget alongside tax breaks and targeted lending from banks…The statements didn’t specify the amount of government funding for the programme, which was first mentioned by President Xi Jinping in February as a way of boosting demand for goods.” The outlet quoted one economist saying the plan would add 0.7 percentage points to GDP growth each year until 2027, with most of the boost coming from support for car purchases. It reported an economist that advises the Chinese government saying that “China needs to boost domestic demand and adjust its industrial policy to counter rising criticism from the US and Europe”.

New rules to boost renewables

GUARANTEED PURCHASE: China’s top economic planner the National Development and Reform Commission (NDRC) released measures to provide “fully-guaranteed purchase of renewable energy electricity” from 1 April, industry news outlet BJX News reported. The rules update an existing policy from 2007, according to an analysis published by Jiemian, to clarify the scope of the “fully guaranteed purchase” programme. The report added that the  purchase mechanism was designed to allocate “purchase responsibilities” based on “market behaviour (need)”. An analysis republished on WeChat by BJX News said that the rules also clarify there might be legal “consequences” for both the renewable energy producer and grids that purchase the power, if they failed to meet their targets of production and purchase. For power purchasers, it is their “responsibility” to purchase a certain amount of renewable power under the purchase mechanism, added the outlet.

CURTAILMENT TOLERATED: Elsewhere, local media in China suggested that the country may soon “end its policy of limiting [renewable power] installations when power curtailments rise above 5% of installed capacity for a given source”, Bloomberg reported, adding that “solar manufacturers have seen their shares rebound in recent days as speculation mounts”. It noted that the local outlets did not provide a source for this information. However, Yu Qing, chief executive of an electricity company in Hangzhou, wrote in an analysis on social media platform WeChat that he was sceptical about the benefit for solar. He said that while easing curtailment rules would allow some previously restricted projects to connect to the grid, it was only a “planning method” and that market signals and other constraints would still cause problems for solar developers. 

Carbon market expands to aluminium industry

NEW JOINER: China’s national emissions trading scheme (ETS) is about to expand beyond the power sector to cover aluminium production, Chinese economic media outlet Caixin reported, but the details have not yet been finalised. Electrolytic aluminium production emits “the most carbon in the non-ferrous metals sector in China” and was responsible for 4.5% of the national total carbon emissions in 2020, added Caixin. (For more, see Carbon Brief’s Q&A on the ETS, China country profile and China Briefing of 8 February.)

WHAT TO EXPECT: Yan Qin, lead analyst at London Stock Exchange Group, told Carbon Brief that the consultation draft of the official document hinted the ETS will cover “indirect emissions from aluminium production”, related to the electricity used in the process. She added that, “as previously announced, industry sectors will only conduct ‘simulation trading’ at the beginning” of their entry into the ETS. The recently closed “two sessions” political gathering (see below) sent a signal that the ETS will involve more industries in the future, said an analysis published by the Chinese government-backed China clean development mechanism fund. Chinese media outlet Lintan-energy posted on its WeChat account that the cement industry is likely to be the third sector to join the ETS, after power and aluminium, and could enter the market by the end of this year.

Booming EV industry faces export difficulties 

‘INTENSIFYING’ MARKET: The number of newly registered companies selling electric vehicles (EVs) in 2023 was six times higher than in 2019, said Chinese outlet Science and Technology Daily, citing a report on trends in the country’s manufacturing industry. China’s technology giant Xiaomi will start EV sales this month, according to BBC News, which said the move “comes as a price war in China’s EV market has been intensifying”. Meanwhile, the Financial Times reported on a “zombie” combustion-engine car factory in China – referring to unused production lines due to lack of demand – and said analysts were predicting hundreds more over the next decade “as buyers opt for EVs”. The head of Chinese EV giant BYD said “new energy vehicles” – including EVs and plug-in hybrids – made up 48% of new cars sales in China last week, Australian outlet the Driven reported, which quoted him saying that, “if it continues at this rate, I estimate that the penetration could cross 50% in the next three months”. 

ROAD BUMPS: Despite the phenomenon of combustion car “zombie” factories, Volkswagen said it still believed the market for petrol-powered cars remains “lucrative” in smaller Chinese cities, said the Financial Times. The report added that poorer cities’ “lack of charging infrastructure” has frustrated EV industry growth. In related news Caixin, citing data from consultancy firm McKinsey China, reported that there was significant “disillusionment” among Chinese EV owners in 2023, with 22% stating they would not consider an EV for their next car, a sharp rise from 3% in 2022. It said the number of EV owners in small cities and rural areas regretting their purchase was at a “striking” 54%, due to inconvenient charging infrastructure. 

EXPORT CONUNDRUM: Following investigations in the EU and US over the growth of Chinese EV exports, the UK is expected to launch its own probe, reported the Daily Telegraph, adding that transport secretary Mark Harper warned of “robust” trade sanctions to prevent what the newspaper called a “flood” of cheap Chinese EVs. Responding to the moves, He Yadong, spokesperson of China’s Ministry of Commerce, expressed “concerns” and added that China’s exports will not “damage” the EU market, reported BJX. Italy has already approached Chinese EV firms and setting up manufacturing in Italy would be “a big win for China’s auto industry”, which sees Italy as a “strategically positioned bridgehead” to get into European, African and Middle Eastern markets, reported Quartz

Spotlight 

What does the economic signal from China’s ‘two sessions’ mean for global emissions, geopolitics and trade?

Every spring, China’s top leaders use the annual political event lianghui (两会), which is also known as “two sessions”, to send signals to the world about how they would like to lead the country in the coming year.

As the “two sessions” drew to a close, experts, academics and foreign investors moved on to interpreting those signals and drafting strategies in response to them. In the previous issue of China Briefing, Carbon Brief analysed the “two sessions” domestic impact.

But, as the world’s second-largest economy and largest emitter, China’s influence does not stop there. This week, Carbon Brief looks into the bigger picture and asks leading experts to interpret how geopolitics, international trade and global emissions could be impacted. Their responses have been edited for clarity and length.

Dr Li Fang, China country director at World Resources Institute:

The most impressive takeaways from this year’s “two sessions”, for me, are the emphasis on how to vitalise development through internal-driven forces, how to improve its market allocation, and how to establish a more low-carbon, ecological and equitable business environment.

The discussion surrounding high-standard international economic and trade rules integrating considerations for climate, ecology and human welfare signals that China is exploring how to achieve a better combination of “effective government” and “efficient market”. 

It is speeding up efforts to incorporate new production elements like carbon into its considerations. I believe there’s a growing inclination among China’s decision-makers to propose proactive strategies aligning economic development with addressing sustainability challenges like climate change and biodiversity loss. I believe there are emerging opportunities for markets and businesses to play more significant roles in China’s future transition.

Nis Grünberg, lead analyst at MERICS:

The “two sessions” did not offer anything surprising or substantively new, but confirmed the approach of the past months, prioritising energy security and economic stability before an accelerated, potentially disruptive, exit of fossil fuel. No new ambitions on emission cuts or coal consumption were announced.

On the positive side, officials plan to continue the massive buildup of renewable energy capacity and systematic support of clean-tech industries. In the short run, this means no quick departure from fossil fuel and large emissions, but, in the long run, the added renewables and China’s rapidly growing clean-tech sector will displace fossil fuel and bring down emissions.

The strong focus on technology apparent throughout the government work report means continuing the substantial political and economic investment in clean tech, which has become a key sector for growth. This also means there is no end in sight to trade conflicts over Chinese exports of electric vehicles (EVs), solar and batteries, which were singled out as success stories. China is signalling that it is not building its clean-tech industry for domestic consumption only, but seeks to double down and expand its export capacities.

Yao Zhe, policy analyst at Greenpeace East Asia

At a time when China’s economy is in dire need of confidence, clean-energy industries offered a rare success story. At this year’s “two sessions”, renewable energy and EVs received the highest recognition for their contributions to economic growth and industrial upgrading. Where the low-carbon economy was once a catchy concept seeking political buy-in, it has now established itself. That signal is clear: China will not waste this potential. The global race for net-zero economies will only accelerate.

But while Chinese policymakers are eager to embrace the future, the past has proven tricky to discard. Coal power continues to receive special treatment, slotted as a safety net for China’s energy consumption, fueling concerns that China will miss its key 2025 climate targets. China’s carbon emissions may soon reach a tipping point. But this year’s “two sessions” did not reveal how or on what near-term timetable policymakers will navigate this historic change.

Ali Wyne, senior research and advocacy advisor on US-China relationship, International Crisis Group

Chinese leaders emphasised cultivating “new productive forces“. [“Productive forces” is a central idea in Marxist theory referring to the combination of human labour with technology and infrastructure, explained a recent article in the Hong Kong-based South China Morning Post. It added that Chinese president Xi Jinping coined the phrase “new productive forces” last year and quoted him saying it means “advanced productivity freed from traditional economic growth models’, feature “high technology, high efficiency and high quality” and “align with the country’s new development philosophy”.] 

With [leaders] emphasising the concept, the “two sessions” underscored China’s hope that investing in leading-edge industries including advanced manufacturing, artificial intelligence and renewable energy will sustain its growth more reliably than investing in traditional drivers, such as real estate.

Domestic demand is unlikely to keep pace with the new capacity that this push generates, however, so economic frictions between China and advanced industrial democracies, especially in the West, are poised to intensify further.

Watch, read, listen

WOMEN AND CLIMATE CHANGE: Chinese climate and investment consultancy firm 2060 Advisory produced a podcast on International Women’s Day about female entrepreneurship in the climate industry.

CLIMATE COOPERATION: The Legal Planet, a climate policy and environmental law blog, released a video recording of Joanna Lewis, writer of the book “Cooperating for the Climate, giving a lecture on how to cooperate with China at UCLA’s Emmett Institute

‘TWO SESSIONS’ AND JAPAN: UK thinkthank Chatham House recorded a podcast discussing China’s National People’s Congress – the legislative body that hosted the recent “two sessions” – and China’s relationship with its close neighbour Japan.

STEEL EMISSIONS: Hong Kong-based South China Morning Post published an article based on data from US thinktank Global Energy Monitor (GEM), which found China’s steel sector could cut carbon emissions by more than 10% in 2025 with a “faster shift to clean production”. 

New science 

Health cost impacts of extreme temperature on older adults based on city-level data from 28 provinces in China
Environmental Research Letters 

New research into the impact of extreme temperatures on medical costs for “older adults” found that in western Chinese provinces, costs will more than triple by 2030, compared to a 2016-20 baseline. The authors found that under the very high emissions RCP8.5 scenario, older adults could cost 2.7tn Chinese yuan by 2050. However, costs can be reduced by 4.6% and 7.4% by limiting emissions in line with the medium-emissions RCP4.5 and low-emissions RCP2.6 scenarios, respectively.

Assessing the supply risks of critical metals in China’s low-carbon energy transition
Global Environmental Change

China has “grown increasingly susceptible to disruptions” in critical metal supplies as it transitions to low-carbon technologies, according to a new study. The nation is the largest consumer and importer of these metals, leaving it vulnerable to geopolitical shifts and volatile prices, the researchers say. They model supply risks for 30 metals and conclude that the risk facing China for nine metals – including copper and chromium – “exceeds that of other countries that consume large amounts of critical metals”.

China Briefing is researched and written by Wanyuan Song, Anika Patel and other contributors. Please send tips and feedback to china@carbonbrief.org

The post China Briefing 21 March: New ‘trade-in’ policy; China ETS expands; ‘Two sessions’ geopolitical impact appeared first on Carbon Brief.

China Briefing 21 March: New ‘trade-in’ policy; China ETS expands; ‘Two sessions’ geopolitical impact

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DeBriefed 29 May 2026: Europe’s ‘mind-boggling’ May | Indian heat deaths | Nigeria’s solar mini-grids

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Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.

This week

UK, Europe and India battle heatwaves

‘MIND-BOGGLING’ MAY: The UK and continental Europe have set “mind-boggingly crazy”  temperature records for May amid a deadly heatwave, reported the Financial Times. According to the Associated Press, the UK “smashed a century-old temperature record for the second time in 24 hours on Tuesday”. The newswire added that records “also fell in France, where temperatures reached 36C on Monday in the country’s south-west”. On Wednesday, Portugal hit a record May temperature of 40.3C, said BBC News.

‘BRUTAL REMINDER’:  In parts of Italy, the heatwave triggered blackouts, reported Reuters. The heatwave has also been linked to more than a dozen deaths in the UK and France, including from people drowning and suffering heat-related deaths while competing in sporting events, said ABC News. Simon Stiell, the executive secretary of UN Climate Change, said the intense heatwaves were a “brutal reminder” of the cost of global warming, reported Politico. Carbon Brief has in-depth coverage of the record-shattering heatwave.
INDIA’S DEADLY HEAT: In the southern Indian states of Andhra Pradesh and Telangana, more than 100 people died within three days following an intense heatwave, reported the Khaleej Times. The publication noted that authorities urged people to stay indoors and avoid direct exposure to the heat. Meanwhile, some parts of India are “grappling with power cuts as record-breaking heat has pushed electricity demand ​to an all-time high”, reported Reuters.

Around the world

  • CRUDE DIPS: The International Energy Agency (IEA) said global investments in oil projects will fall below $500bn in 2026, continuing a three-year decline, reported Bloomberg. Carbon Brief’s analysis of the data shows the US’s “data-centre boom” means it is now investing more in fossil-fuel power than China.
  • DODGING NET-ZERO: The world’s biggest miner, Australian giant BHP, has backtracked on climate action by halting or delaying projects to cut “vast” amounts of emissions, according to a Guardian investigation.
  • SOLAR SLIP: China’s new solar installations dropped for a fourth straight month, reflecting weakening domestic demand, said Bloomberg.
  • NO LOGGING: Deforestation in the Brazilian Amazon fell last year to its lowest level since 2019, according to a new report, said Agence France-Presse.
  • EXECUTIVE ACTION: Puerto Rico’s governor announced a state of emergency to fight a surge in coastal erosion, citing the need to protect natural resources and vulnerable communities, reported the Associated Press.

Four million

The number of homes in the UK with air conditioning, double the figure from three years ago, reported the Guardian. There are 29m households in the UK.


Latest climate research

  • Carbon Brief will soon be launching a new fortnightly newsletter focused on climate research. Sign up for free today.
  • LGBTQ+ households in the US are “significantly more likely” to face energy poverty and insecurity than the general population | Energy Research & Social Science
  • Global rice-paddy greenhouse gas emissions have doubled over the past six decades | Nature Food
  • Vegetation greening and human-caused warming are the “main drivers” of a surge in flash floods over the last decade | Science Advances

(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Tuesday, Wednesday, Thursday and Friday.)

Captured

Map of the UK showing that at least 67 NHS sites have been forced to close due to weather-related flooding since 2021

A Carbon Brief investigation has shed light on the impact of weather-related flooding on National Health Service (NHS) facilities across the UK. At least 67 NHS hospital wards, departments and other sites have been forced to temporarily close or relocate due to weather-related flooding. The chart above shows sites of weather-related flooding incidents at NHS facilities. The size of the circles indicates the number of incidents reported at each site.

Spotlight

How solar mini-grids can ‘help boost’ Nigeria’s economy

This week, Carbon Brief covers a new report on Nigeria’s solar mini-grid industry.

Amid the impact of the US-Iran war on the Nigerian economy, a new report has argued that solar-mini grids can help to reduce the country’s reliance on fossil fuels and create more than 200,000 jobs.

In Nigeria, Africa’s third-largest economy, the war has led to an increase in energy prices and a decrease in petrol consumption. Petrol is one of the country’s main sources of transport and household fuel. According to one estimate, prices have surged by up to 40% since the conflict commenced in February.

Although the Nigerian treasury has benefited from rising crude oil prices – the country is a major exporter of oil and gas – the impact has been most visible on the wider population.

Rising energy prices “have affected the purchasing power of workers”, Agnes Funmi Sessi, a labour union leader in Lagos, told Carbon Brief.

However, scaling the deployment of solar “mini-grids” could help the country move away from fossil fuels, stimulate rural economies and improve livelihoods, according to the new report authored by the thinktank, the Africa Policy Research Institute.

“We estimate that, by deploying over 10,000 mini-grids, the sector could create 212,688 direct full-time informal and productive-use jobs across the off-grid and under-grid market segments,” the report said.

A nascent industry

Solar “mini-grids” are small-scale, localised electricity generation and distribution systems powered by solar panels.

The report positioned Nigeria’s mini-grid sector as one of the fastest-growing in Africa, with the country having just 11 mini-grids in 2015 and 155 by 2024, along with at least 42 active developers.

Many of the companies within the sector are young and apply novel local techniques in their deployment of solar technology, the report said.

However, access to finance remains a huge barrier. According to the report, the sector may require up to $8bn to connect 35.4 million people to mini-grids.

“Most Nigerians want solar power in their homes, but it is a capital intensive business for vendors and customers,” Dr Ben Iheagwara, a renewable energy entrepreneur and policy analyst, told Carbon Brief.

The report urged the Nigerian government and its international partners to “attract private capital by de-risking investments and ensuring regulatory clarity and long-term planning”.

Other key recommendations for policymakers and stakeholders include investment in skills development and paying attention to the gender gap.

Powering rural communities

Many rural communities, which make up about 37% of the country, are disconnected from the national grid system, so often have to generate their own electricity through mini-grid systems.

According to Nigeria’s electricity regulator, NERC, a mini-grid is defined as a power generating system with an installed capacity of up to 10 megawatts.

A mini-grid can be powered by fossil fuels such as diesel or petrol, but solar power is now considered a cheaper and cleaner source.

With more than 80 million people lacking access to electricity in Nigeria, solar mini-grids are increasingly viewed as the lowest-cost electrification solution, the report said.

Watch, read, listen

MOVING FORWARD: The Energy Transition Show dug into electricity reform in South Africa, discussing the country’s coal legacy and the role of renewables.

ENERGY POVERTY: In an opinion article for Project Syndicate, executive director of the African Climate Foundation, Saliem Fakir, argued that the energy transition in emerging and developing economies is driven by economics and security rather than emissions targets.
VANISHING CITY: BBC News reported on a coastal community in Nigeria where the ocean has “already swallowed more than half of the town”.

Coming up

Pick of the jobs

DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.

This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.

The post DeBriefed 29 May 2026: Europe’s ‘mind-boggling’ May | Indian heat deaths | Nigeria’s solar mini-grids appeared first on Carbon Brief.

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Q&A: How can African electricity access power jobs not just lightbulbs?

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At the African Development Bank (AfDB) annual meetings this week, several African leaders called for investments in electricity infrastructure which go beyond lighting homes to powering economies.

Applauding the AfDB for its energy programmes like Mission 300 – which aims to provide electricity access to 300 million Africans by 2030 – the Central African Republic’s President Faustin-Archange Touadera said that without power supply “we will not be able to achieve development”.

Speaking alongside him, the Republic of Congo’s President Denis Sassou Nguesso echoed this, saying that “as we need to help our people to turn towards agriculture, to turn towards livestock rearing, we also need to provide power to them.”

As the Mission 300 initiative advances, attention is increasingly shifting from simply connecting households to ensuring that electricity access translates into economic opportunities and livelihoods. That shift is driving the launch of a new Centre of Excellence for Productive Use of Energy being developed under Mission 300 by the philanthropically funded Global Energy Alliance for People and Planet (GEAPP).

    In an interview with Climate Home News, Carol Koech, GEAPP’s vice president for Africa, said the initiative is designed to ensure that electrification supports income generation, agriculture and local economic development rather than only basic household access.

    Q: What is the Centre of Excellence for Productive Use of Energy aiming to achieve with Mission 300?

    A: Mission 300 is increasingly being seen as a job platform and so the role of the Centre of Excellence in translating those electricity connections to jobs. So we want the centre to do four things. First, as a delivery engine, which enables countries to embed a cross-institutional advisor that supports the electrification components, but also other components that are happening in the country.

    Second, we want the centre to be an innovation and strategy hub. Today, there’s really no place where you can go to find the state of the industry for productive use of energy across the globe, and we want to make the centre of excellence the place where you can go and get information about what technologies are available, where deployment is happening and how much is being deployed.

    Campaigners in Africa are demanding their governments stop the development of fossil fuels on the continent and embrace the opportunities of renewable energy
    (Photo: Lighting Global/SunCulture/World Bank)

    The third pillar is to coordinate and mobilise capital. We anticipate the centre coordinating internally within the ecosystem but also mobilising additional financing to help productivity. The last piece is how to scale businesses, enterprises and partnerships around this centre because we anticipate that as we grow this space, new industries will emerge and those industries will need to be supported.

    Q: Why is productive use of energy becoming important under Mission 300?

    A: Mission 300 gave us a bigger platform to demonstrate that energy is truly an enabler for economic development. It’s not sufficient to just provide a connection, but it is required that that connection truly translates to economic development for the communities that benefit.

    We shouldn’t bring electricity and then start thinking about what people can do with it. We need to think about both at the same time and ensure electricity arrives together with the things that will make a difference in people’s lives. Historically, we’ve brought electricity and imagined a miracle would happen, but we know that hasn’t been the case.

    The question is how to ensure universal access in the cheapest way while still transforming communities. Some mini-grids have been deployed in places where demand is extremely low, making them too expensive to sustain. But when mini-grids are paired with productive uses, the economics start to change. If businesses currently running on fossil fuel generators move to solar or renewable energy, operating costs fall and the business case for mini-grids becomes much stronger.

    Q: How could this work in practice for agriculture and rural communities?

    A: I’ll give you a practical example in our pilot country Zambia. Zambia has two programmes, they have the ASCENT programme for energy access and they also have the Zambia agribusiness and trade platform (ZATP). Some of the components of the ZATP programme – which is an agri-business program to help farmers to be productive – have a productive use component but don’t have an energy supply component. So we’re offering things like mills, processing facilities, irrigation and others. In some parts of Zambia, these productive use equipment has been supplied but has not been powered, so communities are not benefiting from that.

    So the whole point is if we coordinate where the agribusiness programme is deployed together with where the energy access programme is deployed and layer those two programmes together in one place, then you could solve the energy access problem and solve productive use together and therefore have really meaningful outcomes for communities.

    Q: How will the centre help both households and small businesses use electricity productively?

    A: The question on whether we should electrify households or businesses is neither here nor there. We need to electrify all. The argument is really once we electrify businesses, the owners of those businesses will be able to pay what they need for their households as well as increase production for their businesses.

    Electricity consumption is usually an indicator of economic development and by pushing productive use into households, especially where households are also smallholder farmers, the question becomes: how can electricity access translate to additional economic development for them? If you are connected onto a mini-grid, then you can actually use that connection to run irrigation, put in a dryer, or a cold storage system, whatever you require to improve your income but the fact that you have energy means that you can access productive use. Now, we need to ask ourselves how do these farmers or these households then get access to these appliances, because that’s another barrier.

    Q&A: Will subsidy cuts for Chinese clean-tech exports hurt Africa’s solar boom?

    The cost of these appliances is usually extremely high, and when you have programmes such as the ZATP running in Zambia, that’s already a public funding approach to making these appliances available and potentially reachable for farmers, either at household level, at farm level or at community level.

    Q: How does this complement the already existing Mission 300 national energy compacts designed by countries?

    A: Each of the national energy compacts have a productive use component, a pillar that talks about distributed renewable energy, productive use, and clean cooking. This is actually complementing the work of the countries, and this centre is like an available support, back office for countries to tap into as they implement their national energy compacts, if they have specific requirements and support for that pillar three.

    So the advisers that will be embedded into countries, their role is to coordinate within country programs that are running where energy could make a difference. The advisers will be sourced from the country and so they will make sure that the donor money is coordinated to benefit the country fully. Their role will include going to ministries of agriculture or any related ministries and understanding where they are prioritising programmes that require electrification. In many cases, programmes and money have already been allocated, but this component is about how do we deploy it in a way that it actually truly brings a difference, so those advisers will do that.

    Q: How will the centre address financing and private sector investment challenges?

    A: What we’re really looking at is different financing mechanisms. In the past, we have provided subsidies and results-based financing to suppliers, distributors and manufacturers to help create markets for productive-use appliances. I see this as one mechanism the centre could use, but the bigger opportunity is aligning public funding across different programmes so that more of it can support productive uses, either through direct funding or subsidies.

    Nigerians bet on solar as global oil shock hits wallets and power supplies

    When it comes to private sector investment, the reality is that Africa’s energy sector still faces serious constraints. Most private investment has gone into power generation, particularly through independent power producers, and even then that has only been possible in places where the off-takers, usually utilities, are bankable.

    To unlock more private capital, countries need the right policies, reforms and regulations, but even more importantly, utilities must become financially viable. If the off-taker is not bankable, then the project is not bankable.

    Another major question is how to attract private investment into transmission infrastructure. There are different models being explored, but the reality is that public funding alone is not sufficient to achieve Mission 300, so finding new ways to mobilise private capital will be critical.

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    AI boom means US is now ‘investing more’ in fossil-fuel power than China

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    The “data-centre boom” is driving a surge in gas investment in the US, pushing its fossil-power spending ahead of China, according to the International Energy Agency (IEA).

    A rapid expansion of data centres across the nation is at the heart of the US tech sector’s plans to continue “dominat[ing]” the global artificial intelligence (AI) industry.

    High demand for electricity to power these data centres has led to companies rushing to build new gas-fired power plants across the country.

    This trend, combined with “soaring” gas-turbine prices, drove a threefold increase in US gas‑power investment in 2025 – and the IEA expects this to continue throughout 2026.

    As the chart below shows, Chinese investment in coal- and gas-fired power is expected to drop this year, amid domestic policy changes and the Iran war sending gas prices spiralling.

    Together, these trends mean the IEA expects US investment in fossil-fuelled power plants to overtake China’s in 2026.

    Annual investment in fossil-fuel power in China and the US
    Annual investment in fossil-fuel power in China and the US, $bn. The figure for 2026 is an IEA estimate, based on current trends. Source: IEA.

    The IEA’s latest world energy investment report shows that spending on renewables and electricity grids continues to dominate at the global scale.

    In the US, Trump administration policies such as the phase-out of tax credits for renewables has led to the IEA revising its forecast for new wind and solar power downwards.

    At the same time, US electricity demand is expected to rise by an average of 2% per year from 2026 to 2030, with data centres contributing half of the overall increase.

    This is leading to what the IEA calls an “AI-driven push” to build new gas-power plants in the US, the world’s largest data-centre market and largest gas producer.

    Globally, orders for new gas-power plants increased to 130 gigawatts (GW) in 2025 – a 25-year high – and US demand was a “major factor” in this, according to the IEA.

    Much of the demand is coming from tech companies in the US seeking to bypass grid connection queues by building “captive” gas-power plants.

    As the chart below shows, since the start of 2025 these US captive data centres alone have signed off on more investment in new gas turbines than any country in the world – aside from the US itself.

    Total value of new gas generation final investment decisions
    Total value of new gas generation final investment decisions by country, region or use-case, between 2025 and the first quarter of 2026, $bn. Source: IEA.

    Overall, investment in grid upgrades, power equipment and electricity generation to support the buildout of data-centre infrastructure around the world hit $105bn in 2025, according to the IEA.

    This is more than the total invested in the energy sector across the whole of Africa – a continent where more than 600 million people do not have access to electricity.

    The IEA notes that strong demand for gas-power plants for data centres in the US – and, to a lesser extent, the Middle East – is “limiting the availability of turbines for near-term deployment elsewhere in the world”.

    The agency also points out that as the tech sector becomes a “major energy investor”, accounting for around 40% of all corporate power-purchase agreements, it is also “underpinning momentum” for emerging clean technologies, such as small modular nuclear reactors and advanced geothermal.

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