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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

New EU-China climate statement

CLIMATE STATEMENT: European Council president António Costa and European Commission president Ursula von der Leyen signed an EU-China agreement on climate with Chinese premier Li Qiang at today’s EU-China summit, following a meeting with President Xi Jinping. (The Chinese version calls the statement a “joint statement”, while in the EU version it is a “joint press statement”). In it, the two sides “agree to demonstrate leadership together to drive a global just transition” and promote “ambitious, equitable, balanced and inclusive outcomes” at COP30. The statement also highlighted an agreement to “facilitat[e] access to quality green technologies and products, so that they can be available, affordable and beneficial for all countries, including the developing countries”.

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NO LANGUAGE ON COAL: According to a commission press release, the EU “reiterated its commitment to…enhance” climate cooperation with China, plus “encouraged China to propose an ambitious plan for its emission reductions up to 2035 and to step up its international finance contributions”. This echoed earlier comments to Reuters by EU climate commissioner Wopke Hoekstra that China must “take more of a leadership role” on climate action and “move out of the domain of coal”. However, the joint statement itself did not contain any language on coal. According to the statement, focuses for bilateral cooperation include the “energy transition, adaptation, methane emissions management and control, carbon markets and green and low-carbon technologies”, with the commission press release noting that the two sides had “intensive engagement” on emissions trading systems and the “circular economy” over the past 18 months.

CLEAN-TECH TENSIONS: The commission press release also noted that “current trade relations remain critically unbalanced”, with no further details on an expected agreement on electric vehicles. In an earlier meeting, according to state news agency Xinhua, Xi told his counterparts that “China and the EU should deepen green and digital partnerships and promote mutual investment cooperation”. It said he added: “It is hoped that the European side will keep trade and investment markets open, refrain from using restrictive economic and trade tools, and provide a favorable business environment for Chinese enterprises to invest and prosper in Europe.”

MEANS OF PRODUCTION: Earlier, China had issued “new restrictions” on technologies crucial to manufacturing electric vehicle (EV) batteries, reported the New York Times, with government licenses required for “any overseas transfer”. Cory Combs, head of supply chain research at consultancy Trivium China, told Carbon Brief: “My expectation is that Beijing will clear major Chinese producers to use their own tech in their own overseas facilities, but not to license to foreign competition”. He added that these restrictions were less likely to “impede climate cooperation” compared to the “massively disruptive” controls on exports of minerals and gallium metal extraction technologies.

Controversial ‘megadam’ launched

MEGADAM: Premier Li Qiang launched a “megadam” project, which is “expected to be the world’s largest hydroelectric facility”, on the Yarlung Tsangpo River in Tibet, reported the Hong Kong-based South China Morning Post (SCMP). It added that the project, which raised significant concerns when proposed earlier this year, could provide 300 terawatt-hours of electricity – “three times that of the Three Gorges dam” and roughly the same as the UK’s entire output. According to the Communist party-affiliated newspaper People’s Daily, Li “described [the dam] as a project of the century”, adding that “special emphasis must be placed on…prevent[ing] environmental damage”. The project could also help “bolster economic growth as current drivers show signs of faltering”, Reuters said. (See below.)

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POWER ‘TORRENT’: Elsewhere, China has completed a 4,000km power transmission project in the Taklaman desert that will “create a torrent of green power” from renewable-energy rich Xinjiang province, according to Xinhua. The new infrastructure, which took 15 years to build, will “double transmission distance and boost transmission capacity” to three gigawatts (GW), allowing “connections to other regional power grids for long-distance power transmission”, SCMP reported. Separately, nationwide installations of solar capacity in June reached 14GW, down 36% year-on-year and down from 93GW of new solar in May, BJX News said.

INTER-GRID TRADING: Regulators approved a proposal by China’s two major grid companies to develop “routine power-trading” between different operators in China, BJX News reported, with the aim of strengthening China’s power supply. Business news outlet Jiemian said that, according to the grid operators’ plan, regulators will focus on “listed trading” (挂牌交易) of low-carbon electricity between specific provinces. A government official told industry outlet International Energy Net that the move was partially driven by the need to manage the integration of large amounts of new renewable energy capacity into the grid.

Clean-tech a key growth driver

LEADING THE PACK: According to an official at China’s National Bureau of Statistics (NBS), China’s “new-three” industries “continue to maintain high growth rates”, China Environment News reported. The climate-related news outlet quoted an NBS official stating that China’s new-energy vehicle (NEV) industry grew 36% and the lithium-ion battery industry grew 53% in the first half of 2025, compared to overall economic growth of just over 5%. Meanwhile, the number of patents generated by clean-tech companies has “doubled” since 2020, with “53,000 invention patents granted” in 2024, according to the state-run newspaper China Daily.

‘GREEN FINANCE’: China has released a catalogue clarifying which projects can receive “green finance”, reported BJX News, noting that the list includes manufacturing of lithium-ion batteries and other “power-industry equipment projects”. The catalogue “serves as a reference for the future issuance of green loans and green bonds” and should “boost liquidity in the green finance market”, according to China Daily.

NEW PLAYBOOK: A high-level meeting on “urban work” attended by President Xi Jinping ended by pledging that the “focus [of China’s housing industry] will be directed toward building green, low-carbon and beautiful cities”, state news agency Xinhua reported. Reuters said that the meeting underscored that China is “abandoning [a strategy of] breakneck urban growth that once super-charged its economy”. Output of the heavily polluting steel, cement and glass industries fell in June, driven by China’s ongoing housing industry slump, according to Bloomberg, although it noted “hot weather” had limited construction activity. 

Captured

Bar chart: China's BRI 'energy engagement' in H1 2025 is already higher than the 2024 total

China’s energy-related investment and construction in “belt and road initiative” member states during the first half of 2025 (H1 2025) has already exceeded similar “engagement” in the whole of 2024, according to a new report. Clean-energy engagement in H1 2025 – particularly solar, wind and waste-to-energy – “reached new records” compared to the same period in previous years. Report author Prof Christoph Nedopil Wang told Carbon Brief that high oil and gas activity was “mostly explained by a single large gas-related construction project in Nigeria”, with clean-energy power outweighing fossil fuels in terms of newly added generation capacity.

Spotlight

Chinese clean-tech exports to cut emissions equal to Spain’s footprint

New analysis for Carbon Brief by Lauri Myllyvirta, senior fellow at the Asia Society Policy Institute, finds that the low-carbon technologies exported by China in 2024 alone could cut emissions overseas by 220m tonnes of carbon dioxide (MtCO2), roughly equivalent to Spain’s total annual CO2 output.

This issue features an abridged version of the analysis, which is available in full on Carbon Brief’s website.

China’s output of clean-energy technologies is enabling rapid deployment around the world, but their production is energy- and carbon-intensive.

Nevertheless, these clean-tech exports are having immediate global climate benefits – contradicting many commentaries linking China’s clean-tech boom to the sharp rise in its emissions.

Specifically, manufacturing clean-energy equipment for export resulted in an estimated 110MtCO2 of emissions in 2024, or just 1.1% of China’s CO2 from fossil fuels. Yet the solar panels, batteries, electric vehicles (EVs) and wind turbines exported in 2024 will avoid an estimated 220MtCO2 annually when put into operation overseas.

Moreover, these products will continue to generate emissions savings for as long as they continue operating, avoiding a cumulative total of 4bn tons of CO2 across their lifetime.

Looking beyond direct equipment exports, overseas clean-energy investments announced by Chinese companies in 2023-24, such as solar panel manufacturing plants, will generate another 90MtCO2 of avoided emissions per year, once the projects have been built.

In addition, overseas clean-power generation projects announced by Chinese investors in 2023-24 would save another 40MtCO2 per year.

Overseas footprint

China’s clean-energy footprint spans essentially the entire world, but in terms of resulting emission reductions, the largest destinations for China’s overseas clean-energy activity are south Asia and the Middle East and north Africa (MENA) region.

This reflects both the large volumes of Chinese clean-technology activity reaching these countries and their highly carbon-intensive power grids, which means that installing new solar panels offsets high-emissions generation, for example.

On the manufacturing side, Saudi Arabia is the main destination, with a major EV production facility, two solar factories and one for wind turbines. There are also a total of five battery manufacturing projects in Morocco and Oman.

OECD Europe is the largest destination for China’s exports and overseas manufacturing investments by value. However, relative to the volume of exports, the resulting CO2 savings are smaller than in other major destinations, due to lower carbon intensity of power generation.

Another way to look at China’s clean-energy exports and investments is to consider where they have the biggest emissions impact, relative to the total CO2 output in each region.

On a relative basis, sub-Saharan Africa stands out, in addition to MENA.

China’s clean-energy exports in 2024 alone, as well as 2023-24 investments, are set to cut annual emissions in sub-Saharan Africa by around 3% per year. This indicates a rapid uptake of solar power in the region, relative to the size of the region’s electricity systems.

Downstream opportunity

In 2024, clean-energy industries contributed more than 10% of China’s GDP for the first time, underscoring the country’s dominant role in the global manufacturing of certain low-carbon technologies and reinforcing its strategic interest in the continuation and acceleration of the global clean-energy transition.

On the surface, this dominance may suggest that other countries have limited economic opportunities in clean energy.

However, China’s involvement in global supply chains is still largely limited to exports and manufacturing, while most of the value is downstream – in project development, system integration, installation and end-user services.

For example, in 2024, China exported $177bn worth of solar panels, EVs, batteries and wind turbines.

By contrast, the downstream value of overseas clean-energy products and projects relying on Chinese components is an estimated $720bn annually, four times the value of the exported raw components.

Watch, read, listen

AIR-CON DEMAND: China’s “two new” programme could encourage more consumers to trade in their air conditioners for more energy-efficient units, reducing cooling demand by 4.1% this summer, according to a new report by thinktank Ember.

WINNING STRATEGY: Volt Rush discussed how China – and other countries – made solar energy “one of the cheapest sources of power on Earth”.

MERZ’S CHOICE: A comment by three policy experts for Dialogue Earth said Germany could become a “vital broker between Europe and China”, but must “step up” engagement with China on climate.
ENERGY SECURITY: Bashir Bayo Ojulari, head of the Nigerian National Petroleum Corporation, spoke with Xinhua about how other developing countries are “leveraging” China’s model of clean-energy growth coupled with a “reasonable mix of hydrocarbons”.


$7.6bn

The total economic losses caused by “natural disasters” in China in the first half of 2025, Reuters said, adding that “floods caused the most damage”. Regions across China have continued to suffer from extreme heat and deadly torrential rains over the past two weeks.


New science

Unveiling deployable rooftop solar potential across Chinese cities

Nature Cities

A new study on rooftop solar photovoltaics (RPV) in China found that “only 42% of the national technical potential is realistically deployable”. The paper assessed where RPV is deployable across 367 Chinese cities, considering factors including building type, “regional characteristics” and “policy limitations”. It found that, due to “regulatory factors”, deployable RPV is mainly found in urban public and industrial buildings, particularly in western, northern and central regions. They added that “to maximise value, initial deployment should prioritise public and industrial buildings in central and southern cities”.

Role of pumped hydro storage in China’s power system decarbonisation

The Electricity Journal
Developing 120GW of pumped hydro storage (PHS) – in line with China’s target for 2030 – will be “sufficient to balance electricity supply and demand by 2050” in the country, given expected growth in energy storage battery capacity, a new study said. The authors used a “high-resolution power system planning model” to assess the role of PHS in China’s power system. They argued that batteries are “emerging as a more economical solution” for energy storage compared to PHS, adding that “over-investment in PHS could lead to unnecessary electricity price inflation”.

China Briefing is compiled by Wanyuan Song and Anika Patel, with contributions from Ushika Kidd. It is edited by Wanyuan Song and Dr Simon Evans. Please send tips and feedback to china@carbonbrief.org 

The post China Briefing 24 July 2025: EU-China climate statement; World’s largest megadam; Clean-tech exports  appeared first on Carbon Brief.

China Briefing 24 July 2025: EU-China climate statement; World’s largest megadam; Clean-tech exports 

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DeBriefed 27 February 2026: Trump’s fossil-fuel talk | Modi-Lula rare-earth pact | Is there a UK ‘greenlash’? 

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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

Absolute State of the Union

‘DRILL, BABY’: US president Donald Trump “doubled down on his ‘drill, baby, drill’ agenda” in his State of the Union (SOTU) address, said the Los Angeles Times. He “tout[ed] his support of the fossil-fuel industry and renew[ed] his focus on electricity affordability”, reported the Financial Times. Trump also attacked the “green new scam”, noted Carbon Brief’s SOTU tracker.

COAL REPRIEVE: Earlier in the week, the Trump administration had watered down limits on mercury pollution from coal-fired power plants, reported the Financial Times. It remains “unclear” if this will be enough to prevent the decline of coal power, said Bloomberg, in the face of lower-cost gas and renewables. Reuters noted that US coal plants are “ageing”.

OIL STAY: The US Supreme Court agreed to hear arguments brought by the oil industry in a “major lawsuit”, reported the New York Times. The newspaper said the firms are attempting to head off dozens of other lawsuits at state level, relating to their role in global warming.

SHIP-SHILLING: The Trump administration is working to “kill” a global carbon levy on shipping “permanently”, reported Politico, after succeeding in delaying the measure late last year. The Guardian said US “bullying” could be “paying off”, after Panama signalled it was reversing its support for the levy in a proposal submitted to the UN shipping body.

Around the world

  • RARE EARTHS: The governments of Brazil and India signed a deal on rare earths, said the Times of India, as well as agreeing to collaborate on renewable energy.
  • HEAT ROLLBACK: German homes will be allowed to continue installing gas and oil heating, under watered-down government plans covered by Clean Energy Wire.
  • BRAZIL FLOODS: At least 53 people died in floods in the state of Minas Gerais, after some areas saw 170mm of rain in a few hours, reported CNN Brasil.
  • ITALY’S ATTACK: Italy is calling for the EU to “suspend” its emissions trading system (ETS) ahead of a review later this year, said Politico.
  • COOKSTOVE CREDITS: The first-ever carbon credits under the Paris Agreement have been issued to a cookstove project in Myanmar, said Climate Home News.
  • SAUDI SOLAR: Turkey has signed a “major” solar deal that will see Saudi firm ACWA building 2 gigawatts in the country, according to Agence France-Presse.

$467 billion

The profits made by five major oil firms since prices spiked following Russia’s invasion of Ukraine four years ago, according to a report by Global Witness covered by BusinessGreen.


Latest climate research

  • Claims about the “fingerprint” of human-caused climate change, made in a recent US Department of Energy report, are “factually incorrect” | AGU Advances
  • Large lakes in the Congo Basin are releasing carbon dioxide into the atmosphere from “immense ancient stores” | Nature Geoscience
  • Shared Socioeconomic Pathways – scenarios used regularly in climate modelling – underrepresent “narratives explicitly centring on democratic principles such as participation, accountability and justice” | npj Climate Action

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

Captured

The constituency of Richard Tice MP, the climate-sceptic deputy leader of Reform UK, is the second-largest recipient of flood defence spending in England, according to new Carbon Brief analysis. Overall, the funding is disproportionately targeted at coastal and urban areas, many of which have Conservative or Liberal Democrat MPs.

Spotlight

Is there really a UK ‘greenlash’?

This week, after a historic Green Party byelection win, Carbon Brief looks at whether there really is a “greenlash” against climate policy in the UK.

Over the past year, the UK’s political consensus on climate change has been shattered.

Yet despite a sharp turn against climate action among right-wing politicians and right-leaning media outlets, UK public support for climate action remains strong.

Prof Federica Genovese, who studies climate politics at the University of Oxford, told Carbon Brief:

“The current ‘war’ on green policy is mostly driven by media and political elites, not by the public.”

Indeed, there is still a greater than two-to-one majority among the UK public in favour of the country’s legally binding target to reach net-zero emissions by 2050, as shown below.

Steve Akehurst, director of public-opinion research initiative Persuasion UK, also noted the growing divide between the public and “elites”. He told Carbon Brief:

“The biggest movement is, without doubt, in media and elite opinion. There is a bit more polarisation and opposition [to climate action] among voters, but it’s typically no more than 20-25% and mostly confined within core Reform voters.”

Conservative gear shift

For decades, the UK had enjoyed strong, cross-party political support for climate action.

Lord Deben, the Conservative peer and former chair of the Climate Change Committee, told Carbon Brief that the UK’s landmark 2008 Climate Change Act had been born of this cross-party consensus, saying “all parties supported it”.

Since their landslide loss at the 2024 election, however, the Conservatives have turned against the UK’s target of net-zero emissions by 2050, which they legislated for in 2019.

Curiously, while opposition to net-zero has surged among Conservative MPs, there is majority support for the target among those that plan to vote for the party, as shown below.

Dr Adam Corner, advisor to the Climate Barometer initiative that tracks public opinion on climate change, told Carbon Brief that those who currently plan to vote Reform are the only segment who “tend to be more opposed to net-zero goals”. He said:

“Despite the rise in hostile media coverage and the collapse of the political consensus, we find that public support for the net-zero by 2050 target is plateauing – not plummeting.”

Reform, which rejects the scientific evidence on global warming and campaigns against net-zero, has been leading the polls for a year. (However, it was comfortably beaten by the Greens in yesterday’s Gorton and Denton byelection.)

Corner acknowledged that “some of the anti-net zero noise…[is] showing up in our data”, adding:

“We see rising concerns about the near-term costs of policies and an uptick in people [falsely] attributing high energy bills to climate initiatives.”

But Akehurst said that, rather than a big fall in public support, there had been a drop in the “salience” of climate action:

“So many other issues [are] competing for their attention.”

UK newspapers published more editorials opposing climate action than supporting it for the first time on record in 2025, according to Carbon Brief analysis.

Global ‘greenlash’?

All of this sits against a challenging global backdrop, in which US president Donald Trump has been repeating climate-sceptic talking points and rolling back related policy.

At the same time, prominent figures have been calling for a change in climate strategy, sold variously as a “reset”, a “pivot”, as “realism”, or as “pragmatism”.

Genovese said that “far-right leaders have succeeded in the past 10 years in capturing net-zero as a poster child of things they are ‘fighting against’”.

She added that “much of this is fodder for conservative media and this whole ecosystem is essentially driving what we call the ‘greenlash’”.

Corner said the “disconnect” between elite views and the wider public “can create problems” – for example, “MPs consistently underestimate support for renewables”. He added:

“There is clearly a risk that the public starts to disengage too, if not enough positive voices are countering the negative ones.”

Watch, read, listen

TRUMP’S ‘PETROSTATE’: The US is becoming a “petrostate” that will be “sicker and poorer”, wrote Financial Times associate editor Rana Forohaar.

RHETORIC VS REALITY: Despite a “political mood [that] has darkened”, there is “more green stuff being installed than ever”, said New York Times columnist David Wallace-Wells.
CHINA’S ‘REVOLUTION’: The BBC’s Climate Question podcast reported from China on the “green energy revolution” taking place in the country.

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 27 February 2026: Trump’s fossil-fuel talk | Modi-Lula rare-earth pact | Is there a UK ‘greenlash’?  appeared first on Carbon Brief.

DeBriefed 27 February 2026: Trump’s fossil-fuel talk | Modi-Lula rare-earth pact | Is there a UK ‘greenlash’? 

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Pacific nations want higher emissions charges if shipping talks reopen

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Seven Pacific island nations say they will demand heftier levies on global shipping emissions if opponents of a green deal for the industry succeed in reopening negotiations on the stalled accord.

The United States and Saudi Arabia persuaded countries not to grant final approval to the International Maritime Organization’s Net-Zero Framework (NZF) in October and they are now leading a drive for changes to the deal.

In a joint submission seen by Climate Home News, the seven climate-vulnerable Pacific countries said the framework was already a “fragile compromise”, and vowed to push for a universal levy on all ship emissions, as well as higher fees . The deal currently stipulates that fees will be charged when a vessel’s emissions exceed a certain level.

“For many countries, the NZF represents the absolute limit of what they can accept,” said the unpublished submission by Fiji, Kiribati, Vanuatu, Nauru, Palau, Tuvalu and the Solomon Islands.

The countries said a universal levy and higher charges on shipping would raise more funds to enable a “just and equitable transition leaving no country behind”. They added, however, that “despite its many shortcomings”, the framework should be adopted later this year.

US allies want exemption for ‘transition fuels’

The previous attempt to adopt the framework failed after governments narrowly voted to postpone it by a year. Ahead of the vote, the US threatened governments and their officials with sanctions, tariffs and visa restrictions – and President Donald Trump called the framework a “Green New Scam Tax on Shipping”.

Since then, Liberia – an African nation with a major low-tax shipping registry headquartered in the US state of Virginia – has proposed a new measure under which, rather than staying fixed under the NZF, ships’ emissions intensity targets change depending on “demonstrated uptake” of both “low-carbon and zero-carbon fuels”.

The proposal places stringent conditions on what fuels are taken into consideration when setting these targets, stressing that the low- and zero-carbon fuels should be “scalable”, not cost more than 15% more than standard marine fuels and should be available at “sufficient ports worldwide”.

This proposal would not “penalise transitional fuels” like natural gas and biofuels, they said. In the last decade, the US has built a host of large liquefied natural gas (LNG) export terminals, which the Trump administration is lobbying other countries to purchase from.

The draft motion, seen by Climate Home News, was co-sponsored by US ally Argentina and also by Panama, a shipping hub whose canal the US has threatened to annex. Both countries voted with the US to postpone the last vote on adopting the framework.

    The IMO’s Panamanian head Arsenio Dominguez told reporters in January that changes to the framework were now possible.

    “It is clear from what happened last year that we need to look into the concerns that have been expressed [and] … make sure that they are somehow addressed within the framework,” he said.

    Patchwork of levies

    While the European Union pushed firmly for the framework’s adoption, two of its shipping-reliant member states – Greece and Cyprus – abstained in October’s vote.

    After a meeting between the Greek shipping minister and Saudi Arabia’s energy minister in January, Greece said a “common position” united Greece, Saudi Arabia and the US on the framework.

    If the NZF or a similar instrument is not adopted, the IMO has warned that there will be a patchwork of differing regional levies on pollution – like the EU’s emissions trading system for ships visiting its ports – which will be complicated and expensive to comply with.

    This would mean that only countries with their own levies and with lots of ships visiting their ports would raise funds, making it harder for other nations to fund green investments in their ports, seafarers and shipping companies. In contrast, under the NZF, revenues would be disbursed by the IMO to all nations based on set criteria.

    Anais Rios, shipping policy officer from green campaign group Seas At Risk, told Climate Home News the proposal by the Pacific nations for a levy on all shipping emissions – not just those above a certain threshold – was “the most credible way to meet the IMO’s climate goals”.

    “With geopolitics reframing climate policy, asking the IMO to reopen the discussion on the universal levy is the only way to decarbonise shipping whilst bringing revenue to manage impacts fairly,” Rios said.

    “It is […] far stronger than the Net-Zero Framework that is currently on offer.”

    The post Pacific nations want higher emissions charges if shipping talks reopen appeared first on Climate Home News.

    Pacific nations want higher emissions charges if shipping talks reopen

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    Doubts over European SAF rules threaten cleaner aviation hopes, investors warn

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    Doubts over whether governments will maintain ambitious targets on boosting the use of sustainable aviation fuel (SAF) are a threat to the industry’s growth and play into the hands of fossil fuel companies, investors warned this week.

    Several executives from airlines and oil firms have forecast recently that SAF requirements in the European Union, United Kingdom and elsewhere will be eased or scrapped altogether, potentially upending the aviation industry’s main policy to shrink air travel’s growing carbon footprint.

    Such speculation poses a “fundamental threat” to the SAF industry, which mainly produces an alternative to traditional kerosene jet fuel using organic feedstocks such as used cooking oil (UCO), Thomas Engelmann, head of energy transition at German investment manager KGAL, told the Sustainable Aviation Fuel Investor conference in London.

    He said fossil fuel firms would be the only winners from questions about compulsory SAF blending requirements.

    What is Sustainable Aviation Fuel (SAF)?

    The EU and the UK introduced the world’s first SAF mandates in January 2025, requiring fuel suppliers to blend at least 2% SAF with fossil fuel kerosene. The blending requirement will gradually increase to reach 32% in the EU and 22% in the UK by 2040.

    Another case of diluted green rules?

    Speaking at the World Economic Forum in Davos in January, CEO of French oil and gas company TotalEnergies Patrick Pouyanné said he would bet “that what happened to the car regulation will happen to the SAF regulation in Europe”. 

    The EU watered down green rules for car-makers in March 2025 after lobbying from car companies, Germany and Italy.

    “You will see. Today all the airline companies are fighting [against the EU’s 2030 SAF target of 6%],” Pouyanne said, even though it’s “easy to reach to be honest”.

    While most European airline lobbies publicly support the mandates, Ryanair Group CEO Michael O’Leary said last year that the SAF is “nonsense” and is “gradually dying a death, which is what it deserves to do”.

    EU and UK stand by SAF targets

    But the EU and the British government have disputed that. EU transport commissioner Apostolos Tzitzikostas said in November that the EU’s targets are “stable”, warning that “investment decisions and construction must start by 2027, or we will miss the 2030 targets”.

    UK aviation minister Keir Mather told this week’s investor event that meeting the country’s SAF blending requirement of 10% by 2030 was “ambitious but, with the right investment, the right innovation and the right outlook, it is absolutely within our reach”.

    “We need to go further and we need to go faster,” Mather said.

    UK aviation minister Keir Mather speaks at the SAF Investor conference in London on February 24, 2026. (Photo: SAF Investor)

    SAF investors and developers said such certainty on SAF mandates from policymakers was key to drawing the necessary investment to ramp up production of the greener fuel, which needs to scale up in order to bring down high production costs. Currently, SAF is between two and seven times more expensive than traditional jet fuel. 

    Urbano Perez, global clean molecules lead at Spanish bank Santander, said banks will not invest if there is a perceived regulatory risk.

    David Scott, chair of Australian SAF producer Jet Zero Australia, said developing SAF was already challenging due to the risks of “pretty new” technology requiring high capital expenditure.

    “That’s a scary model with a volatile political environment, so mandate questioning creates this problem on steroids”, Scott said.

    Others played down the risk. Glenn Morgan, partner at investment and advisory firm SkiesFifty, said “policy is always a risk”, adding that traditional oil-based jet fuel could also lose subsidies.

    A fuel truck fills up the Emirates Airlines Boeing 777-300ER with Sustainable Aviation Fuel (SAF), during a milestone demonstration flight while running one of its engines on 100% (SAF) at Dubai airport, in Dubai, United Arab Emirates, January 30, 2023. REUTERS/Rula Rouhana

    A fuel truck fills up the Emirates Airlines Boeing 777-300ER with Sustainable Aviation Fuel (SAF), during a milestone demonstration flight while running one of its engines on 100% (SAF) at Dubai airport, in Dubai, United Arab Emirates, January 30, 2023. REUTERS/Rula Rouhana

    Asian countries join SAF mandate adopters

    In Asia, Singapore, South Korea, Thailand and Japan have recently adopted SAF mandates, and Matti Lievonen, CEO of Asia-based SAF producer EcoCeres, predicted that China, Indonesia and Hong Kong would follow suit.

    David Fisken, investment director at the Australian Trade and Investment Commission, said the Australian government, which does not have a mandate, was watching to see how the EU and UK’s requirements played out.

    The US does not have a SAF mandate and under President Donald Trump the government has slashed tax credits available for SAF producers from $1.75 a gallon to $1.

    Is the world’s big idea for greener air travel a flight of fancy?

    SAF and energy security

    SAF’s potential role in boosting energy security was a major theme of this week’s discussions as geopolitical tensions push the issue to the fore.

    Marcella Franchi, chief commercial officer for SAF at France’s Haffner Energy, said the Canadian government, which has “very unsettling neighbours at the moment”, was looking to produce SAF to protect its energy security, especially as it has ample supplies of biomass to use as potential feedstock.

    Similarly, German weapons manufacturer Rheinmetall said last year it was working on plans that would enable European armed forces to produce their own synthetic, carbon-neutral fuel “locally and independently of global fossil fuel supply chain”.

    Scott said Australia needs SAF to improve its fuel security, as it imports almost 99% of its liquid fuels.

    He added that support for Australian SAF production is bipartisan, in part because it appeals to those more concerned about energy security than tackling climate change.

    The post Doubts over European SAF rules threaten cleaner aviation hopes, investors warn appeared first on Climate Home News.

    Doubts over European SAF rules threaten cleaner aviation hopes, investors warn

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