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Heatwaves are becoming more likely and more intense due to climate change, impacting sources of power generation around the world as they work to meet increased demand.

When temperatures soared past 40C in parts of Europe in June and July 2026, nuclear reactors shuttered, gas plants’ efficiency fell, wind speeds dropped and electricity networks sagged.

Yet, while all types of electricity generation are affected variously by extreme heat, some commentators are quick to point the finger at “intermittentwind and solar, while downplaying the impact on sources such as gas or nuclear power.

Extreme heat also drives up electricity demand, as people turn on air conditioning and fridges work harder.

For example, in France, daily electricity demand rose by almost 20% during a two-week heatwave in June 2026.

This often leads to an increase in power prices, as generation strains and demand rises, putting a premium on electricity.

Below, Carbon Brief – amid a slew of misleading claims – explains how key power sources cope with extreme heat.

Nuclear

The impact of heatwaves on nuclear power generation is well documented, with a plethora of headlines often accompanying record temperatures in nations that rely on the technology.

For example, around 70% of electricity is generated by nuclear power in France, leaving it vulnerable to the impacts of heatwaves.

During the July 2026 heatwave, three of France’s 57 nuclear reactors had to shut down. Generation was reduced at another seven, causing an almost 9% dip in power production.

(This is a well-known phenomenon – France has seen reductions in nuclear generation due to heatwaves in 2003, 2006, 2015, 2018, 2019, 2022 and 2025.)

A similar story is true across various countries in Europe. Low river levels on the Danube have hit nuclear reactors in Romania, Hungary and Serbia this summer, while a Swiss nuclear reactor shuttered due to high river temperatures.

It is nuclear plants using river water to cool their reactors that are most significantly affected by heatwaves and droughts. These make up 14% of the global fleet. Around 60 of the world’s 440 river-cooled reactors are located in France, with a further seven across Europe.

Nuclear power plants use fission to generate heat, which is used to create steam. This steam spins the blades of a turbine that is connected to a generator to create electricity.

Following this process, the water is cooled to allow it to be recycled back through the system as steam again. Nuclear power plants generally use water from rivers or the sea to help cool and condense this steam.

As such, when water temperatures rise due to a heatwave, their cooling capacity is reduced and the overall efficiency of the nuclear power station is affected. Similarly, if there is less water available due to drought, they cannot be cooled as effectively.

Michael Tadrous, a researcher at McMaster University’s DeGroote School of Business in Canada, tells Carbon Brief that the “impact [of heatwaves] is real, but it is far smaller than many headlines suggest” and that the “effect [of heat] is gradual”. He adds:

“Warmer intake water makes a reactor slightly less efficient. [But] even an extreme 15C rise in cooling-water temperature would cost a large reactor only about 6% of its output.

“The real pressure point during a heatwave is usually legal rather than technical. Plants return their cooling water to the river a few degrees warmer than they drew it and the law limits how warm that water may be in order to protect aquatic life.”

Henry Preston, a spokesperson for the industry body the World Nuclear Association, adds that reactor shutdowns due to high river temperatures are “typically an automatic response to comply with regulations to protect local ecosystems, rather than a technological fault”.

He notes that in some extreme heatwaves, these regulations are waived given the “essential need for electricity and taking a proportional approach to climate risks”.

While nuclear power plants can generally return to standard operation quickly if they have been affected by high water temperatures, drought can cause a more significant impact.

Preston tells Carbon Brief:

“In contrast to high river temperatures, which can quickly return to acceptable levels once a heatwave passes, low river levels can persist for much longer, if drought conditions continue. As a result, low water levels may have a more prolonged impact on plant operations than elevated water temperatures.”

This is set to be the case in the current European drought, where multiple reactors in Hungary and Romania have shut down or reduced their output due to low water levels.

Simon Evans on Bluesky: Hungary's Paks nuclear plant is close to complete shutdown due to low water levels on the Danube

The Danube is not expected to return to normal water levels for “days or even weeks as no significant rainfall is forecast”, reported the Associated Press on 3 August 2026. It said this was “push[ing] some countries in eastern Europe to the brink of energy emergency”.

While heatwaves and drought can produce significant short-term effects, their impact on the availability of nuclear power across a full year is generally minimal.

On average, heatwaves cut annual nuclear generation by 0.6% between 2003 and 2022, according to a recent study that Tadrous co-authored.

He adds that, across the whole period studied, the only time a national nuclear fleet lost more than 1% of its nuclear power over a year to heat- and drought-related curtailments was France in 2003, which lost 1.3%.

According to an article in Forbes, for every additional degree Celsius in temperature, a nuclear power plant loses around 0.6-1% in cycle efficiency.

To minimise the impact on both energy security and costs, governments and nuclear companies are looking at a range of solutions to adapt to heatwaves.

For example, French nuclear-plant operator EDF is looking at additional cooling towers for its sites that are the most exposed to the impacts of a warming climate, reported Bloomberg recently.

Tadrous says the nuclear power industry is already adapting to heatwaves that are “more frequent and more intense”, adding:

“France’s river-cooled fleet lost 5.5 terawatt hours (TWh) of output to the 2003 heatwave. By 2022, one of the most severe heat-and-drought summers on record, losses had fallen to 0.5TWh, a reduction of roughly 90%, as utilities upgraded cooling systems, refined operating practices and scheduled maintenance around periods of extreme heat.”

There remain challenges for adapting nuclear power – and the wider electricity systems in which it sits – to heatwaves. However, Tadrous notes that this is less about “technical feasibility than of economic prioritisation and timely implementation”.

Gas

Gas power plants have a reputation for being reliable and able to switch on at any moment, sometimes referred to as “firm, dispatchable” capacity.

Yet, as a type of thermal generation, they are subject to many of the same stresses during heatwaves as nuclear power.

An article by the science advocacy organisation Union of Concerned Scientists (UCS) notes that the “purported ability of gas plants to be available at all times to generate electricity, particularly when the grid needs it most, is increasingly under scrutiny” due to heatwaves.

As a matter of physics, the efficiency of gas power plants drops as temperatures rise. At 40C, a gas-fired power station can expect its capacity to be reduced by 13% and its efficiency by 7% compared to when running at 20C, according to Electric Insights.

Dr Iain Staffell, associate professor in sustainable energy at Imperial College London, tells Carbon Brief:

“Simple gas turbines (the kind which turn on rapidly to meet peak demand) are hit harder [than solar, for example], with their power output falling by about 10% per 10C.”

(He adds that the transmission system struggles more than electricity generation during high temperature. Power line capacity can fall by up to 16% for a 10C rise in temperature, according to a report for the UK government.)

Several types of gas power plants require cooling as part of their process, including gas steam and combined cycle turbines (CCGTs). They usually rely on nearby bodies of water for this.

Additionally, as the UCS article notes, hot air has a lower density than cool air. As gas CCGTs rely on burning a mix of gas and air, this lower density means air takes up more space, leaving less room for gas.

Ultimately, this means that when the air is hot, gas power plants cannot generate as much electricity as normal.

These effects are not just theoretical. For example, across two nights in August 2020, there were rolling blackouts in California, US, as demand exceeded supply amid a heatwave.

While a number of factors contributed to the blackouts, gas plants made up around 79% of the capacity that dropped off the system on 14 August and a similar share the following day.

Amid record-breaking heat in summer 2026, gas power plants have also seen their capacity cut in the UK, France and other countries.

Simon Evans on Bluesky says: HEATWAVE HITS GAS POWER? Amid tight GB supplies, looks like gas plants cutting output due to heat?

Dr Staffell adds that gas power stations are thought of as “reliable, because of the way we use them” in the UK.

Whereas wind and solar are usually used to the maximum extent possible, he says that on average, only around 40% of the gas fleet is in use at any one time. As such, even if the efficiency of one gas power plant is affected by high temperatures, “we have a lot of slack to call on more of them to run”. He adds:

“The issue is less that they can’t deliver, but we have to pay through the nose to persuade more to turn on at critical times, adding to sky-high energy bills.”

Wind

The impact of heatwaves on wind generation is less direct than for other technologies.

However, wind speeds often drop during heatwaves, which tend to build during periods of sustained high pressure into extreme events such as “heat domes”.

Dr Staffell, explains to Carbon Brief:

“The very hottest days tend to create heat domes with very low wind speeds, which directly reduces the output that windfarms can produce. Air is also less dense the hotter it is, so it carries less energy within it, so there is a double impact on wind turbines.”

High temperatures are linked to low wind speeds across three-quarters of the globe, according to one recent study, looking at data from 1980 to 2023.

The study found that, as a result, across Australia, northern Asia and Europe, wind power decreased by an average of 30-50% during heatwaves.

This is inconsistent globally, however, with the Amazon, the Great Plains in North America and central Africa actually seeing a slight increase in wind during high temperatures.

As such, while the effect of heatwaves on wind generation is less direct than other generation technologies, it can have a significant impact.

In the UK in June 2026, wind generation fell to around 15% of the electricity mix due to low wind speeds, from an average for the month of about 30%, according to Octopus.

Low wind generation during this period was a key feature of the strain on the grid experienced during this time – in particular, as demand rose amid record-high temperatures.

On Wednesday 24 June, for example, the National Electricity System Operator (Neso) had to pay high prices to balance supply and demand. This included paying as much as £1,400 a megawatt-hour to secure around 1.7 gigawatts (GW) of imported power, nearly 20 times the average price for electricity in June 2025.

A Neso spokesperson said in a statement: “This is due to the impact of extremely high temperatures affecting Great Britain and the continent, and low wind.”

While reduced wind generation is common during a heatwave, it is not generally viewed as a concern for energy system operators. This is due to wind following well-established seasonal patterns – it generates less power in summer than in winter – as well as being complementary to other renewable technologies, such as solar.

Dr Chris Rosslowe, senior energy analyst for Europe at Ember, tells Carbon Brief:

“Power systems are less reliant on wind power in the summer months and its lower-than-average output is already expected and planned for. Heatwaves often bring still, but clear conditions, highlighting the benefit of wind and solar as a duo – poor conditions for one often mean good conditions for the other.”

As such, wind power remains one of very few technologies considered “resilient” to heatwaves by the UK government.

However, this did not stop the anti-renewables Daily Mail from attempting to blame the technology for strain on the UK grid on 24 June 2026, despite its own article acknowledging that gas plants had also been forced to cut their output by 2.5GW on the day.

Solar

Another common claim seen in the media is that solar “struggles” during heatwaves, with high temperatures pushing down the technology’s efficiency.

Yet heatwaves tend to coincide with long, cloudless days, when solar generation is reliably above average – despite the impact of high temperatures.

While hot weather does reduce the efficiency of solar cells, the effect is relatively modest – and widely understood. Each 1C of temperature rise reduces output by around 0.4-0.5%, according to a recent study.

This is in line with an evidence review for the UK government, which suggests the performance of solar panels falls by 0.2-0.5% for every degree of heat above 25C.

Generally, however, this effect is easily outweighed by high sunlight hours during hot spells. For example, across a four-day heatwave in the UK in June 2026, solar generated 484 gigawatt-hours (GWh) of electricity – a 46% increase over the same period a week earlier.

Similar generation highs were seen across Europe, amid record temperatures and dangerous heat that was pushing people towards the use of air conditioning.

Solar generated a record 52TWh across the EU in June 2026, beating the high set just the month before of 47TWh.

In fact, solar – especially when combined with battery storage – is a complementary technology to air conditioning, given their similar seasonal patterns. Over the course of the day, demand from air conditioning and generation from solar also marry up well.

Dr Rosslowe says:

“Solar, battery storage and air conditioning are a highly complementary trio of technologies during heatwaves. There’s a high overlap between solar output and demand from AC.”

For example, on the hottest day of the year so far in Great Britain (the island grid serving England, Wales and Scotland), on 26 June 2026, solar surged to 13.9GW in the middle of the afternoon, as demand also hit its highest point, as shown in the chart below.

Solar power tends to match high electricity demand during heatwaves. Half-hourly electricity demand and generation by source, gigawatt (GW). Area chart shows demand peaking around 40GW between 12pm and 2pm on 26 June 2026, with solar power supplying a major share of electricity during these peak daytime hours. Source: Neso. - (alt text generated by Google Gemini)
Generation on the 26 June in Great Britain, highlighting the match between solar power (yellow) and the demand profile for electricity (blue line). Source: Neso.

Across June 2026, homes with solar panels generated the equivalent of five hours of “free” self-supplied air conditioning, according to recent analysis.

Despite the impact of heat on solar efficiency, the technology is, therefore, well placed to bolster energy systems during heatwaves.

Indeed, as Dr Rosslowe tells Carbon Brief, solar suppresses power prices during daylight hours. But, even though it is predictable, there are still challenges around managing the dip in solar generation as the evening sets in. This is often compounded because it coincides with the usual evening increase in demand.

Dr Rosslowe explains:

“Problems arise when the sun goes down, but demand for cooling remains high. In the early evening hours, when gas power typically ramps up to replace solar, we have seen prices spike to extreme levels, made worse by high international gas prices.”

Storage

Energy storage systems are increasingly key to managing the impact of heatwaves on electricity systems.

The category of technologies is dominated by batteries, with more than 108GW of battery storage added in 2025 alone, according to the International Energy Agency.

Already, batteries have been used to take advantage of surges in solar generation during the daytime, amid high summer temperatures.

This is particularly useful to meet evening peaks in electricity demand, as well as the need for air conditioning overnight when temperatures do not fall.

In a statement, Pawel Czyzak , Europe programme director at Ember, said:

“Heatwaves will not go away – they will only get more severe in the future. Solutions that can help mitigate their impacts, such as battery storage, interconnection, demand flexibility and dynamic tariffs, should become a key part of grid planning and power market design.”

However, batteries are not without their challenges during heatwaves. Battery performance also decreases as temperatures exceed their optimal level.

Additionally, high temperatures can accelerate the degradation of components in lithium-ion batteries, which dominate the sector.

Analysis for the UK government found that prolonged operation at very high temperatures could – at least in theory – “overwhelm” the cooling systems built into batteries, “posing risks such as thermal runaway and explosions”. However, it noted that in practice, these cooling systems are “routinely” designed to handle temperatures of up to 45C.

(The analysis added that “developers and manufacturers have a strong understanding of risk to [battery storage systems] from high temperature and mitigate risks through regular maintenance, design improvements, and passive cooling strategies”.)

Other storage technologies also face challenges during heatwaves. For example, pumped hydro storage can be significantly impacted by drought.

Australia – which now has 4.3GW of large-scale battery storage capacity – saw its fleet of batteries and pumped hydro storage tested at the beginning of 2026, amid the most severe heatwave in years.

Temperatures above 40C posed “challenges” to storage technologies, reported Energy Storage News, which explained that their output and operating times were reduced by the increased need for their cooling systems to operate.

Despite these challenges, the use of battery storage is helping to spread the ability of renewables to meet electricity demand during heatwaves. For example, a combination of solar and battery energy storage “kept the lights on” in California amid a heatwave in 2024.

By storing abundant power during the day, it can be discharged during evening peaks, helping to minimise generation constraints and thereby keep power prices down.

Dr Rosslowe says:

“The extreme price spikes that we witness during heatwaves are a blaring signal for more power system flexibility. That could come from battery storage, demand response, or increased interconnection between countries or regions.”

The post Factcheck: How nuclear, gas, wind and solar power are affected during heatwaves appeared first on Carbon Brief.

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New Zealand moves to protect business with law curtailing climate litigation

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New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.

The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.

Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.

“Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.

Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.

    Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.

    Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.

    In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.

    Corporate lobbying in the shadows

    Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.

    “That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”

    The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.

    The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.

    Green groups fail to stop bill

    The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.

    But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.

    A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.

    “Pathetic”: New Zealand plans to barely cut emissions between 2030 and 2035

    Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.

    But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.

    The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.

    Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”

    Copycat legislation on the rise

    New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.

    In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.

    The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.

    UN General Assembly backs “climate obligations” set by world’s top court

    Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.

    “Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.

    The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.

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    Indonesia’s nickel production cuts are not enough to create a sustainable industry 

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    Bhima Yudhistira Adhinegara is the Executive Director of the Center of Economic and Law Studies (CELIOS), an Indonesia-based economic think tank. Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia desk at CELIOS. 

    Indonesia produces around 60% of the world’s nickel, a metal used to manufacture batteries for electric vehicles (EVs) – more than any other country in the world. But in 2026, the government sharply reduced how much of its nickel can be extracted from the ground.

    Production quotas were reduced by around 40% this year compared to 2025. Weda Bay, the largest nickel mine on Earth, had its allowance cut by more than 70% and exhausted its full-year quota by the end of May, halting mining entirely; it cannot resume large-scale extraction until next year unless regulators grant an extension.

    The policy has sparked a vivid debate in Indonesian policy circles: how can the country shift its strategy from a decade of mining vast quantities of cheap nickel to producing a high-value and low-carbon material that the rest of the world wants for EV batteries.

    The cuts aren’t a silver bullet to clean up Indonesia’s nickel industry, whose smelters are powered by coal – the most polluting fossil fuels. But alongside stricter enforcement of environmental rules, it is one side of efforts to produce more sustainable nickel for a premium.

    Restricting Indonesia’s nickel output

    Production quotas were introduced to stop the collapse of nickel prices because of oversupply in the market. Prices had fallen more than 40% in 2023 alone and kept sliding as Indonesian supply kept growing, hitting a four-year low of around $13,900 a ton in late 2025.

    Critics called the recent tightening of production quotas proof that Indonesia’s nickel strategy has failed, arguing that the industry shouldn’t need to throttle its own output to survive. But when assessed against what the policy was supposed to do – push up nickel prices – it has worked. Prices jumped to $20,000 a ton in May, the highest since 2024.

      Chinese industry groups representing companies that have invested billions to mine and refine the country’s nickel were furious, warning Indonesia’s president Prabowo Subianto that the cuts put $50 billion worth of investment at risk. But much of that Chinese capital is sunk into smelters and processing plants built specifically to run on Indonesian ore, and cannot simply be moved elsewhere. That gives Jakarta more room to hold its ground than the warning suggests.

      Stronger environmental enforcement

      Since the start of the year, Indonesia’s forestry task force has seized more than four million hectares of land from mines and plantations operating illegally in protected forests, collecting over two trillion rupiah ($113 million) in fines.

      This included 148 hectares seized from Weda Bay for lacking a forestry permit. The share of nickel produced from illegal small-scale mining also fell from about a quarter in 2022 to roughly 10% by 2024.

      The crackdown responds to serious environmental damages in the nickel industry. On Obi Island, a waste pond collapsed after heavy rain in June 2025, flooding three villages and killing a resident. Internal company tests found chromium-6 – a carcinogen – in the water, in quantities far above the legal limit. The footprint of another mine near Raja Ampat, which is home to some of the world’s richest coral reefs, grew 60-fold in just eight years.

      A coastal village is wedged between the sea and a large nickel mine in Indonesia
      The fishing villages of Tapunggaya in Sulawesi, Indonesia, are squeezed between the sea and an expanding nickel mine (Photo by Garry Lotulung/NurPhoto)

      The market is responding to early cleanup efforts. Low-carbon nickel now sells for a real premium, roughly $18,800 to $19,300 a ton compared with $17,900 to $18,300 otherwise, as carmakers seek to source cleaner materials to comply with the European Union’s new emissions rules for imports.

      In turn, this is incentivising the industry to do more to green its operations. Vale Indonesia’s smelter in South Sulawesi now runs almost entirely on hydropower, for example.

      None of this addresses coal use, however. Major Indonesian nickel producers still emitted an estimated 15 million metric tons of greenhouse gases in 2023. Indonesia may be cracking down on illegal mining and rewarding cleaner producers but it is still running its mines on the dirtiest fuel available.

      Unequal benefits

      For Indonesia to truly benefit from producing cleaner and high-value nickel, it needs to reap the economic benefits too. Although the industry has boosted the country’s economic growth, the reality on the ground tells a different story.

      Konawe in Southeast Sulawesi is home to a major smelting complex. Growth in the district jumped from 6% to 22% between 2015 and 2023, driven almost entirely by the nickel industry, according to a study by the Lowy Institute study. At the same time, poverty levels increased slightly and unemployment remained unchanged.

        In Halmahera, another epicentre of the nickel industry, spending by the poorest fifth grew just 5% between 2019 and 2022, compared with 28% for the wealthiest fifth, according to a separate study.

        Part of the reason for this inequality is the system for transferring mining royalties to district authorities where the mines are located. In theory, they are entitled to the largest share. But in practice, payments are delayed, companies routinely dispute what they owe and royalties are pooled and distributed across a larger area.

        The Natural Resource Governance Institute has found that decentralisation handed local governments power to approve new mines faster than they could build their capacity to manage them. Higher output raises national income on paper, but local governments remain constrained by fiscal rules and infrastructure costs that scale with mining.

        None of this makes the 2026 quota cuts a mistake. Indonesia has every right to defend its pricing power over a resource it controls. But limiting extraction isn’t going to fix underlying issues around environmental enforcement and revenue-sharing. That requires rules that are consistently enforced, royalties that reach communities living by the mines, and a plan to wean smelters off coal.

        The post Indonesia’s nickel production cuts are not enough to create a sustainable industry  appeared first on Climate Home News.

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        Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans

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        SYDNEY, Monday 24 August 2026 – New analysis of Woodside modelling released by Greenpeace Australia Pacific and Environs Kimberley has revealed the oil and gas corporation’s plans to drill at Scott Reef could cause an oil spill up to 30 times bigger than the 2009 Montara disaster, impacting the Kimberley coastline and reaching as far as Indonesia.

        The new analysis details the “catastrophic” oil spill risk put to environmental regulators for approval by Woodside in its Browse to North West Shelf Project (Browse) plans, the worst-case scenario being a blowout directly below Scott Reef, polluting whale migratory pathways and covering isolated turtle nesting ground with oil condensate.

        An FOI application (F348) revealed the federal environment department (DCCEEW) asked offshore oil and gas regulator NOPSEMA to look into the oil spill risk in 2025. NOPSEMA’s response to the application refused access to its report, and one document shows DCCEEW sought further advice this year.

        Greenpeace and Environs Kimberley are calling on the Federal Government to publicly release the NOPSEMA report given the risk of an uncontrolled release of oil condensate from directly below Scott Reef.

        Hannah Schuch, Senior Campaigner at Greenpeace Australia Pacific, said: “Woodside is aware that drilling at Scott Reef risks a massive oil spill that would have severe, far-reaching consequences. It appears environmental regulators are aware too.

        “The state and federal governments need to take this risk from Woodside’s drilling plans seriously, as they could end up allowing the worst oil spill in Australian history.

        “The pygmy blue whales that migrate up and down the WA coast with their newborns each year could be swimming and feeding in toxic, oil-slicked water. Woodside’s proposal to drill at Scott Reef is an environmental disaster waiting to happen, and the WA and federal governments have one surefire way to prevent catastrophe — reject Browse.”

        Martin Prichard, Executive Director at Environs Kimberley, said: “A catastrophic oil spill by Woodside would be disastrous not just for marine life in the area but also for the Kimberley’s $500 million tourism industry.

        “The state and federal governments will see five marine parks on the Kimberley coast included in the risk area of a catastrophic Woodside oil spill.

        “The Montara oil spill was disastrous for West Timor with the toxic oil destroying seaweed farmers’ livelihoods. The Kimberley dodged a bullet with Montara, we were lucky the spill didn’t head our way. Myself and a crew flew over the Montara oil spill and followed it as far as we could. It was like a scene from a disaster movie.”

        After the WA Environmental Protection Authority deemed Browse “unacceptable” due, in part, to oil spill risk, Woodside submitted a mitigation plan based on technology that has never been used “in anger”, a weakness stated in an independent expert review of the plan.

        Professor Richard Steiner, independent oil spill expert, said: “A large offshore spill is impossible to effectively contain or recover. Historically, only 2-6% of total spill volume is recovered and the ecological injury from the release of toxic hydrocarbons in the sea can be severe, extensive, and long-term.

        “Here in Alaska, government research concludes that several marine populations injured by the 1989 Exxon Valdez oil spill, including whales, fish, and seabirds, are still not recovering today, 37 years later. We should expect similar long-term ecological impacts in Western Australia if there were to be a major oil spill. The only sure way to avoid the risk of a catastrophic marine oil spill is to not develop oil and gas projects in marine environments.”

        -ENDS-

        Media contact

        Emma Sangalli on emma.sangalli@greenpeace.org or 0431 513 465

        Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans

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