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Despite recent shifts in federal energy policies, our analysis shows that the US transition to renewable energy is continuing.

The current administration has enacted a range of changes to prioritise fossil-fuel energy and environmental deregulation in the US, while withdrawing support for renewables.

Yet solar, wind and battery storage accounted for over 90% of new energy capacity in 2025.

This is thanks to the falling cost of renewable energy technologies, investments spurred by the Inflation Reduction Act and Bipartisan Infrastructure Law and local and state policies, according to our research at the Center for Global Sustainability, University of Maryland.

Our analysis examines recent trends in the US energy landscape, focusing on rising electricity demand, new electricity capacity additions and generation, as well as fossil-fuel production and state-level case studies.

Rising electricity demand in the US

A key shift in the calculus is the fact that US electricity demand is now projected to increase rapidly, after a period of relative stagnation.

Between 2005 and 2020, electricity demand was relatively flat, after surging in the 1990s due to growth in the economy and population, as well as rising electrification.

However, as the chart below shows, demand has grown by 7% since 2020 – and this is set to accelerate.

Chart showing that since 2020, electricity demand in the US has been accelerating
Change in electricity demand relative to a 1990 baseline, %. Black line: Historical data. Red and blue lines: Projections under “current policies” and “enhanced climate action”, respectively. Source: Historical data from the Energy Information Administration. Projections from Pathways to 2035.

Rising transport electrification, along with new demand from data centres, buildings and industry are expected to drive additional electricity growth in the near term.

Our recent report finds that US electricity demand could increase by 24-34% in the next decade, relative to 2021 levels, as shown in the figure below. It shows that electricity demand would be higher if there is enhanced climate ambition, due to higher shares of electrified transport, industry and buildings.

Charts showing that higher climate ambition could lead US electricity demand to increase by 34% in the next decade
Sources of electricity demand, thousand terawatt hours, in the “enhanced ambition (high)” scenario (left) and the “current policies’ scenario (right). Both scenarios assume the same level of demand growth from data centres, but vary in the growth from other sectors based on underlying policy assumptions. Source: Pathways to 2035.

While demand has been relatively flat over the past decade or two, there have been major shifts in the source of electricity supply over this period.

(Note that changes in generating capacity do not correspond directly to patterns in electricity demand shown earlier.)

Whereas huge numbers of gas-fired power plants were built in the 2000s, renewable energy has been the primary source of new capacity for the past decade. With demand largely flat, much of this new capacity helped offset the loss from significant coal retirements during this period.

Indeed, capacity additions from renewable energy have outpaced that of every other technology since 2011, according to our research.

Accelerating renewable-energy buildout is increasingly viewed as an immediate, low-cost and practical solution to meet demand growth.

As shown in the figure below, additions of solar, wind and battery storage capacity reached more than 90% of total additions in 2024 and 2025 at 47 gigawatts (GW) and 48GW a year, respectively.

Chart showing that solar, wind and battery storage made up 90% of new capacity in 2024 and 2025
Net US electricity nameplate capacity changes by generation technology between 2000 and 2025, gigawatts (GW). Source: University of Maryland analysis of EIA data.

This pace of renewable deployment is attributable to quickly declining costs, driven by improvements in manufacturing technology, maturing supply chains and better economies of scale.

Meanwhile, 112GW of coal capacity was retired over the last decade due to market forces, health concerns and clean-energy policies.

Gas-power additions have remained at a low but steady level, our research shows.

Renewables surpass coal

As a result of the shifts in generating capacity, solar generation has increased nearly tenfold over the last decade, while wind generation has doubled.

As such, solar and wind reached 9% and 10% of the generation mix last year, respectively, as shown in the chart below.

Coal generation has fallen by more than 50% over the same period, replaced by a combination of renewables and gas, which has risen steadily.

(Note that coal-power output increased in 2025, primarily due to higher gas prices, while federal policy changes forced some old plants to stay open.)

Chart showing that gas and renewables have overtaken coal in the US electricity generation mix
Electricity generation by fuel type, terawatt hours, with 2001 and 2025 annual shares for selected technologies included as annotations. Source: University of Maryland analysis of EIA data.

Gas generation has steadily increased in the US, reaching a 39% share of the generation mix last year. Roughly speaking, the growth in wind and solar – around 600 terawatt hours (TWh) – in the past decade was sufficient to match the decline in coal generation, while growing gas generation covered the roughly 300TWh increase in demand through 2025.

As a result, as shown in the figure below, fossil-fired electricity as a whole has fallen to 56% of the mix.

Chart showing that the fossil-fuel share of US power generation has fallen 15 percentage points this century
Fossil and non-fossil share of annual electricity generation in the US, with 2001 and 2025 annual shares included as annotations.Source: University of Maryland analysis of EIA data.

Our research shows that a rapid renewable energy buildout is occurring across states regardless of political allegiance, driven by strong economic advantages, policies such as state “renewable portfolio standards” and other environmental and health benefits.

Over the last decade, land- and wind-rich states such as Texas, Oklahoma and Iowa, have accounted for 62% of new wind capacity. Meanwhile, “sun-belt” states such as Texas, California and Florida have built 52% of new solar capacity.

Clean-energy policies have further driven renewable deployment. For example, California has a binding law requiring 100% of electricity to come from renewable and zero-carbon energy sources by 2045, with an interim target of 60% by 2030.

This has contributed to a 44% renewable generation share in the state in 2025, up from 16% only a decade ago.

Similarly, New Mexico has a legislated goal to reach 80% renewable electricity by 2040 and 100% zero-carbon electricity by 2045.

More than half of New Mexico’s electricity is now generated by renewables, up from only 9% in 2015. The state’s 3.5GW SunZia wind and transmission project is set to be the largest renewable energy project in the western hemisphere when completed.

At the same time, our research suggests that the increasing partisanship of climate policy has been a key barrier for many states.

Some states have tried to restrict climate action, spanning a potential solar-farm construction moratorium in Alabama to a ban on net-zero policy and greenhouse-gas regulation in Florida.

Renewables transcending politics

Importantly, the factors driving the transition to renewables are now frequently transcending politics.

Our research shows that lower cost, quick-to-deploy and energy-secure renewables make practical sense in many market contexts in the US – and globally. Businesses, local governments and consumers are voting with their wallets to address immediate needs.

For example, Texas leads the nation in renewable-energy expansion, despite its lack of decarbonisation goals. Texas’ deregulated power grid and lighter permitting processes, combined with its abundant renewable resources and falling technology costs, have increased renewable electricity capacity to nearly 90GW in 2025.

The state now generates more power from solar farms than coal plants.

Public health is another driver of the clean-energy transition that transcends politics, our research suggests. Oregon, for example, passed a law in 2016 to phase out all coal-generated electricity by 2035, which the state deemed “necessary for the immediate preservation of…public health and safety”.

Data centre development and energy affordability are also shaping state policy landscapes.

Virginia – which has the highest number of data centres of any US state – just passed new laws to allow for more efficient grid utilisation and to shift energy costs towards data centres while assisting low-income households with energy efficiency improvements.

The figure below shows how widespread renewable-energy development now crosses state and political divides, even though it remains constrained to some extent by geography.

Between 2010 and 2020, state and federal policies helped spur renewable energy, with particularly strong growth in states like California and North Carolina.

More recently, declining costs and improving economics have become increasingly important drivers of renewable energy expansion, even amid increasing political and policy setbacks in some regions. This has contributed to a broader dispersion of solar and wind deployment across US states between 2020 and 2025.

US power plants by technology and capacity
New electricity capacity additions by technology and plant size across the US in each period. Source: University of Maryland analysis of EIA data

While most domestic economic sectors are still fossil-fuel heavy and current US energy security priorities promote continued fossil production, this fossil-fuel reliance has shifted over the past decade away from coal mining towards oil and gas drilling.

Coal production has fallen more than 40% over the last decade, tracking the decline in domestic coal consumption, as shown by the red line in the lower figure below.

In contrast, oil and gas production and exports have grown steadily since 2008, with the US becoming a net liquified natural gas (LNG) exporter over the last decade.

Charts showing fossil fuel production, imports and exports. The charts show that coal production has fallen over the decade as focus has shifted to oil and gas
Exports, imports and production of fossil-fuel resources by the US over time, in units of trillion British Thermal Unit (BTU). Source: University of Maryland analysis of EIA data.

However, recent upheavals in the Middle East have underscored the country’s continued exposure to global fossil- energy markets.

Our research shows that renewable energy deployment in the US today is rooted in its practicality and cost-effectiveness. These advantages are allowing it to outcompete fossil-fuel technologies in terms of electricity capacity expansion, even across varying political landscapes.

Nevertheless, policy continues to influence the sector.

Coupled with parallel strategies for vehicle transport electrification, renewable deployment would offer lowered risks to consumers and businesses from fossil-fuel price volatility.

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UK withdraws millions in funding from world’s second-largest rainforest in Congo 

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The UK has abandoned projects worth tens of millions of pounds that were meant to help protect Congo rainforests and support local people.

Together, these initiatives would have made up around half of the £200m that the UK pledged to support conservation in the Congo basin – the world’s second-largest rainforest.

When it hosted COP26 in Glasgow, the UK led a new initiative to end forest loss, which included a collective pledge by 12 donors of “at least” $1.5bn (£1.1bn) for Congo rainforest nations by 2025.

Development minister Jenny Chapman revealed last week that, as of 2024, the UK had only provided £39.8m towards this goal.

Alongside the US and much of Europe, the UK has significantly cut its aid budget in recent years, leading to much of its Congo rainforest spending being cancelled or reappraised.

The government says it still plans to “prioritise” rainforest regions, including the Congo basin, but civil society groups and MPs are concerned about the lack of “ring-fenced” forest funding in the UK’s new aid strategy.

COP pledge

At COP26, the UK – led by then prime minister Boris Johnson – launched the “Glasgow leaders’ declaration”, with a goal to “halt and reverse forest loss” by 2030. This was backed by more than 140 nations.

The UK also made various funding pledges, including £200m to protect the Congo basin, £350m for tropical forests in Indonesia and “up to £300m” for the Amazon.

These commitments target the world’s three largest rainforests, all of which face major forest loss due to threats such as agriculture, logging and climate change.

The Congo basin is the planet’s largest forested carbon sink. Yet, its six host nations are among the poorest in the world and face significant funding barriers.

This has global ramifications. An official UK assessment warned that “degradation or collapse” of the Amazon or Congo rainforests “threaten UK national security and prosperity”.

Forest cuts

Following successive aid cuts introduced by both the Conservative and then Labour governments – tracking a global trend – the UK’s Congo funding is under threat.

The Congo basin forest action programme (CBFA) was launched by the UK at COP27. It was explicitly set up to provide “roughly half” of the UK’s £200m Congo pledge.

CBFA set out to “empower central African nations”, such as the Democratic Republic of the Congo (DRC), with support for “community forests” and other measures to curb forest loss.

Now, after reporting delays, the UK has slashed the CBFA as part of the Labour government’s recent aid cuts, intended to free up money for defence spending.

Its original £90m budget has now been reduced to £18.8m. Government data shows that £15m of this has already been spent.

This is not the only Congo project that has been dropped due to this latest round of aid cuts.

The Congo part of the biodiverse landscapes fundchampioned by the previous government and worth at least £12.3m – has been closed, just two years into its seven-year schedule.

Government documents reveal more Congo forest funding is at risk as the UK scales back its aid budget, including the UK’s two largest remaining projects in the region.

One initiative, intended to “incubate forest-friendly enterprises” in DRC, faces “reduc[ed] budgets”. Officials working on the other, while more optimistic, reported that the project may be forced to operate in fewer countries as the cuts set in.

Documents also reveal the difficulties that come when operating in the Congo, including “complex political economies and, in Gabon, a military coup – which “complicated matters”.

‘Breaking promises’

Damian Fleming, a senior director of forests at WWF International tells Carbon Brief:

“Tropical forest countries are making long-term policy and development choices in expectation that international partners will honour their commitments.”

In a series of recent parliamentary responses, Chapman revealed that the UK had only spent £39.8m on Congo forest finance, as of 2024. (She declined to provide any information on the Indonesia and Amazon regional goals.)

Despite being presented as the UK’s “contribution” to the £1.1bn-by-2025 global goal agreed at COP26, the £200m target has a deadline of 2029.

Therefore, while the collective goal has been met, the UK’s contribution so far has been relatively small.

Zac Goldsmith, a former Conservative minister who oversaw the forest targets at COP26, tells Carbon Brief that, in his view, the UK has “discarded” its regional pledges:

“We have gone from being perhaps the leader on protecting nature internationally to breaking promises to countries around the world for whom the environment is an existential issue.”

Future targets

The Labour government says it has met the five-year “climate finance” target of £11.6bn that expires this year.

Ministers also say the government has met “and exceeded” the £3bn and £1.5bn sub-goals for “preserving nature” and forests, respectively, within the £11.6bn. These are the funding streams that include support for the Congo basin and other rainforests.

The UK has funded a variety of projects in line with its forest goals, including mangrove restoration in Indonesia, support for carbon-offsetting projects in Brazil and promoting “forest stewardship” among farmers in Cameroon.

Chapman has stated that the UK will continue to “prioritise” the Congo rainforest, in line with its new plan for aid spending in Africa. The UK even helped to launch a new “call to action” for Congo basin funding at COP30 last year.

The UK government also says it supported the creation of Brazil’s flagshipTropical Forest Forever Facility” (TFFF). However, so far it has not provided any funding for the facility.

When the government announced a new climate finance pledge for 2026 onwards, it stressed that nature would still be a “focus” and said it would also generate billions in “climate and nature positive investments”. Nevertheless, it dropped the “ring-fenced” amounts for nature and forests that had appeared in its previous pledge.

The UK, alongside other developed countries, has pledged to provide biodiversity finance to developing countries, under the Kunming-Montreal Global Biodiversity Framework (GBF) – a non-binding global pact to halt and reverse nature loss by 2030.

Sarah Champion, chair of the international development committee of MPs, says “sub-pledges” for nature and forests are a “cost-effective and impactful” way to ensure this finance is provided, alongside climate finance. She tells Carbon Brief that she was “concerned” about the move away from this approach:

“When the minister recently appeared before the international development committee, I was concerned to hear her characterise this shift as a ‘gamble’.”

A government spokesperson tells Carbon Brief:

“We remain committed to providing finance for forests, including in the Congo basin, as a core element of our overall climate funding.”

A shorter version of this article was first published in Cropped, Carbon Brief’s fortnightly newsletter that provides a digest of food, land and nature news, on 15 July 2026. Subscribe for free.

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Cropped 15 July 2026: Uganda starves | Trump opens endangered habitats | UK cuts rainforest aid

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We handpick and explain the most important stories at the intersection of climate, land, food and nature over the past fortnight.

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

Key developments

Global drought and heat

DRY THEN WET: A recent heatwave and months of low rainfall has led to a prolonged drought for Uganda, resulting in at least 16 deaths from hunger and significant crop losses, reported BBC News. Bastille Post Global suggested that “a developing El Niño later this year could bring heavier rainfall to parts of the region, raising the risk of flooding in areas now struggling with drought”.

FUNDING FOOD: The UN Food and Agriculture Organization (FAO) and the World Food Programme (WFP) have appealed for $200m in funding to help African nations deal with the impact of El Niño, stated Deutsche Welle. This would target 22 high-risk countries with measures, including “cash transfers, climate-resilient seeds, livestock protection and flood control.” The Guardian explained how El Niño could still “cause a severe shock to global food prices lasting into 2028”.

FARMING FEARS: Extreme weather has devastated agriculture across the world. India saw its driest June in 12 years, reported BBC News, and France has had a “double-digit production” decline, according to Le Monde. The Financial Times reported that farmers in the UK are mitigating the impacts of extreme heat by eliminating “chemicals and intensive ploughing to improve soil quality so it retains water”.

EURO FIRES: Wildfires have spread across Europe, with Spain reporting at least 12 deaths so far, according to the Guardian, and France experiencing road closures, said Reuters. Wildfire Today reported that the most extreme conditions are “across France, Spain and northern Portugal, the Alpine arc extending into northern Italy, the south of the UK and south-east Ireland”. CNN explained how “the climate crisis is driving hotter, drier weather, which is setting the stage for fiercer fire seasons”.

Endangering species

REDEFINING HARM: The Trump administration “reversed decades of longstanding environmental law protecting endangered species…opening up sensitive habitats…to drilling, mining, farming and real estate development”, reported CNN. According to the story, the change “redefines what constitutes ‘harm’” to endangered species, which historically prohibited habitat modification or degradation. Agence France-Presse reported that US environmental groups sued the Trump government over the move, arguing that it had violated “common sense, biological science and federal law”.

OPEN SEASON: Reuters reported that the change “limits the reach of the 50-year-old Endangered Species Act” (ESA), which is a “key regulatory consideration” when granting permits for “oil and gas, mining, electric transmission and ​other operations on federal lands and water”. Legal scholars told the New York Times the US government “was acting without conducting scientific research into the impact” of the change, while the National Mining Association “applauded the announcement”.

News and views

  • INTERNATIONAL WATERS: After a significant delay, the UK ratified the Biodiversity Beyond National Jurisdiction Agreement (BBNJ), also known as the High Seas Treaty. Oceanographic detailed how this will allow for “marine protected areas across international waters for the first time”, but also stressed that the “hard part” starts now. 
  • SCOPE-FREE: The world’s largest meat supplier JBS “scrapped a key climate goal” in its net-zero plan that accounts for its suppliers’ emissions, “which make up the vast bulk of the company’s environmental footprint”, reported the Financial Times. The company told the paper it was difficult to control these “indirect” emissions.
  • DEEP TROUBLE: Pacific gray whales are facing a “catastrophic die-off” as sea-ice loss threatens their food sources, said the Guardian. Separately, conservationists warned that more than half of all molluscs that “cluster around underwater vents” could face extinction from deep-sea mining, reported Reuters.
  • ETHANOL PUSHBACK: India’s new rules to promote 100% ethanol fuel and make ethanol-blended fuel mandatory at pumps “triggered a political row”, reported the Times of India. While the Indian government defended the push to automobile owners, a Hindu editorial and an Indian Express comment warned against incentivising fuels made from “water-intensive” sugarcane and rice. 
  • AMAZON ACTION: Deforestation in the Brazilian Amazon fell to its lowest level in a decade, but president Lula’s plans to “end illegal deforestation by 2030” could be hampered if he is not re-elected, reported Al Jazeera. Meanwhile, Colombia’s outgoing environment minister warned of greater environmental and climate risk under the incoming government, said the Associated Press
  • WAR WORRIES: The International Energy Agency (IEA) warned of the impact of the Iran war on Africa’s clean cooking efforts as disruption in the strait of Hormuz has stunted supplies and increased prices of liquefied petroleum gas (LPG), explained Climate Home News

Spotlight

UK ‘discards’ Congo rainforest funding

Amid worldwide cuts to aid spending, Carbon Brief explores how the UK is backtracking on funding for the Congo basin – the world’s second-largest rainforest.

The UK has abandoned projects worth tens of millions of pounds that were meant to help protect Congo rainforests and support local people.

Together, these initiatives would have made up half of the £200m that the UK pledged to support forest conservation in the Congo basin.

When it hosted COP26 in Glasgow, the UK led a new initiative to end forest loss, which included a collective pledge of “at least” $1.5bn (£1.1bn) for Congo rainforest nations by 2025.

Development minister Jenny Chapman revealed last week that, as of 2024, the UK had only provided £39.8m towards this goal.

COP pledge

At COP26, the UK – led by then prime minister Boris Johnson – launched the “Glasgow leaders’ declaration”, with a goal to “halt and reverse forest loss” by 2030.

The UK also made various regional funding pledges, including £200m for the Congo basin, £350m for tropical forests in Indonesia and “up to £300m” for the Amazon.

All of these rainforests face major forest loss. The Congo basin is the planet’s largest forested carbon sink, but its six host nations are among the poorest in the world and face significant funding barriers.

This has global ramifications. An official UK assessment warned that “degradation or collapse” of the Amazon or Congo rainforests “threaten UK national security and prosperity”.

African elephant pictured in Congo.
African elephant pictured in Congo. Credit: BIOSPHOTO / Alamy Stock Photo

Forest cuts

Following successive aid cuts introduced by both Conservative and Labour governments – tracking a global trend – the UK’s Congo funding is under threat.

The Congo basin forest action programme (CBFA) was explicitly set up to provide “roughly half” of the UK’s £200m Congo pledge.

Now, after reporting delays, the UK has slashed the CBFA as part of the Labour government’s aid cuts. Its £90m budget has been “quietly reduced by 79% to £18.8m”, according to the Times.

This is not the only Congo project that has been dropped due to aid cuts. The Congo part of the biodiverse landscapes fund – worth at least £12.3m – has closed five years early.

Official documents reveal more Congo forest funding is at risk, including the UK’s two largest remaining projects in the region. One initiative, intended to “incubate forest-friendly enterprises” in DRC, faces “reduc[ed] budgets”.

Documents also show the difficulties operating in the Congo, including “complex political economies and, in Gabon, a military coup – which “complicated matters”.

‘Breaking promises’

Damian Fleming, a senior forests director at WWF International told Carbon Brief:

“Tropical forest countries are making long-term policy and development choices in expectation that international partners will honour their commitments.”

In a parliamentary response, Chapman said that the UK had spent £39.8m towards its £200m Congo target, as of 2024.

Despite being described as the UK’s contribution to the £1.1bn-by-2025 global goal agreed at COP26, the £200m target has a deadline of 2029. Therefore, while the collective goal has been met, the UK’s contribution was relatively small.

Zac Goldsmith, a former Conservative minister who oversaw the forest targets at COP26, told Carbon Brief that, in his view, the UK has “discarded” its regional pledges:

“We have gone from being perhaps the leader on protecting nature internationally to breaking promises to countries around the world.”

The Labour government says it has met its overarching “climate finance” goals and still intends to “prioritise” the Congo rainforest.

However, civil society groups and MPs are concerned about the lack of “ring-fenced” forest funding in the UK’s new aid strategy.

Watch, read, listen

TOXIC TROUBLES: DeSmog unpacked a new report that said Northern Ireland is being turned into a “toxic” pig and poultry farming “sacrifice zone” to satiate the UK’s meat appetite.

NEED TO NOAA: Laid-off scientists from the US’s National Oceanic and Atmospheric Administration (NOAA) launched Climate.Us – an independent, public-backed version of the climate information website shut down by Trump last year.

DRY FRUIT: A Dialogue Earth long read looked at how climate change is impacting apricot harvests in the “stark, high-altitude desert” region of Ladakh, India.

READING ALOUD: A London Review of Books podcast discussed Robin Wall Kimmerer’s influential book “Braiding Sweetgrass”, weighing its compelling themes and where it veers into “scientific overreach”.

New science

  • Climate change could cause Indigenous peoples in the Amazon to lose 28-34% of their plant species and 18-23% of their associated services | Nature
  • Biodiversity in forests can act as a “buffer” against compound extreme weather events | Nature Communications
  • Zero-deforestation commitments in Indonesia’s palm oil sector have had “no additional impacts” on reducing forest loss | Proceedings of the National Academy of Sciences

In the diary

This edition of Cropped was written by Jess Milligan, Josh Gabbatiss and Aruna Chandrasekhar. Cropped is edited by Dr Giuliana Viglione. This edition was edited by Daisy Dunne. Please send tips and feedback to cropped@carbonbrief.org.

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Campaigners oppose Dangote’s planned Kenya refinery over climate and ecological risks

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Climate and environment campaigners have urged the Kenyan government to halt plans for a proposed 700,000-barrel-per-day oil refinery backed by Africa’s richest man, Aliko Dangote, warning the project threatens one of East Africa’s most ecologically sensitive coastlines. 

The refinery, which is planned to be situated in Lamu County on Kenya’s northern coast, will be East Africa’s largest refining project and is expected to take up to three years to build. Once finished, it would supply refined petroleum products to Kenya, Uganda, Tanzania and Rwanda, among others, helping to reduce the region’s dependence on imported fuels.

Campaigners are questioning the viability of such a large refinery at a time when renewable energy and electric transportation are expanding rapidly.

Mohamed Adow, director of a Kenya-based climate and energy think-tank Power Shift Africa, said the decision to give Dangote the green light for the refinery is “an extraordinary act of environmental recklessness and economic short-sightedness”, arguing it would tie Kenya to “yesterday’s energy system” just as global demand for petroleum products faces increasing uncertainty. 

    Campaigners argue the refinery risks coming online just as transport – the largest market for petrol and diesel – is beginning to electrify across the continent.

    Kenya launched a National Electric Mobility Policy earlier this year to speed up the uptake of electric vehicles (EVs) and reduce the country’s roughly $5 billion annual fuel import bill. Ethiopia has already banned imports of non-electric vehicles and now has more than 100,000 EVs on its roads, while Rwanda is expanding its electric mobility programme with plans to convert its fleet of around 100,000 motorcycles to electric.

    Adow said the project risks billions of dollars in investment in infrastructure that could become obsolete as the world moves away from oil.

    “Building a refinery today assumes decades of robust demand for fuels that much of the world is actively trying to phase out,” he said in a statement. 

    Ecological concerns

    Lamu – the proposed site for the project – is home to the UNESCO World Heritage-listed Lamu Old Town and an archipelago containing extensive mangrove forests, coral reefs and seagrass beds that support fisheries, tourism and coastal livelihoods.

    Locating the refinery in Lamu would “place one of Africa’s largest fossil fuel developments in one of the continent’s most ecologically sensitive and culturally significant coastal regions,” Power Shift Africa said.

    Major emitting countries knew of climate risks decades earlier than claimed

    Sherelee Odayar, oil and gas campaigner at Greenpeace Africa, warned that a refinery of this scale could increase the risk of habitat destruction, marine pollution, oil spills and air pollution in one of East Africa’s most fragile coastal ecosystems.

    She said the risks stem not only from the refinery itself – including storage tanks, pipelines and fuel handling facilities – but also from the large volumes of crude oil that would need to be shipped into Lamu and refined products exported by sea. Increased tanker traffic and fuel transfers, she said, would raise the likelihood of accidents in ecologically sensitive coastal waters.

    Odayar added that Lamu’s low-lying, flood-prone coastline could compound those risks by damaging infrastructure and carrying contaminants from storage facilities into nearby fishing grounds and marine ecosystems.

    “Lamu’s mangroves, coral reefs and seagrass beds are not expendable; they support fisheries, livelihoods and coastal protection,” Odayar added.

    She said Kenyan authorities should suspend any approvals until an independent environmental and social impact assessment is completed, with genuine public participation and transparent scrutiny of the long-term economic, health and ecological risks.

    “Any review must assess cumulative impacts on Lamu’s mangroves, coral reefs, seagrass beds and fishing livelihoods, alongside the wider economic risk of locking Kenya into costly fossil fuel infrastructure as the global energy transition accelerates”.

    Dangote Group declined to answer questions from Climate Home News when contacted by phone.

    Technological change threaten project’s future

    The Kenya refinery would replicate Dangote’s 650,000-barrel-per-day refinery in Lagos, currently Africa’s largest, which has plans to more than double capacity to 1.4 million barrels per day by 2028.

    Adow of Power Shift Africa said projects like this represent “a breathtaking failure to recognise where the global economy is heading”, pointing out that the East African refinery risks arriving when Africa is experiencing an unprecedented clean energy boom. 

    Referencing Africa’s solar boom, global electric vehicles uptake and the International Energy Agency’s projection that global oil demand is set to enter a decline later this decade, the think-tank founder said African governments risk anchoring the continent’s future to an industry facing mounting economic uncertainty.

    Loss and damage fund delays first project approvals as needs dwarf resources

    The organisation said the project faces a bigger threat aside from environmental opposition and that is technological change. “The danger is not simply that the refinery will pollute, it is that it will become obsolete long before it has paid for itself,” he added.

    Kenyan President William Ruto said the project will create about 60,000 jobs for Kenyans and supply refined fuel to eight East and Central African countries.

    GreenPeace Africa’s Odayar said the promise of ‘thousands of jobs’ cannot be used to hide the true cost of the investment which is that large fossil fuel projects often create temporary jobs while undermining existing livelihoods in fishing, tourism and small-scale local economies.

    “The enormous capital required for a project of this scale could instead help accelerate Kenya’s renewable energy future through solar, wind, geothermal, storage and better energy access,” she added.

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