Governments should promise in their next round of climate plans, due by early next year, not to build any new coal-fired power stations and to shut down existing ones early, the head of the International Energy Agency (IEA) has said.
Speaking on Monday at an old London coal power plant-turned-shopping centre, IEA head Fatih Birol said he would be “very happy” to see new NDCs (Nationally Determined Contributions) that “include no new unabated coal and also early retirements of existing coal”.
In 2021, the Glasgow Climate Pact, agreed at the COP26 UN climate summit, called on countries for the first time to accelerate efforts “towards the phase-down of unabated coal power”. “Unabated” means power produced using coal without any technology to capture, store or use the planet-heating carbon dioxide emitted during the process.
Birol, a Turkish energy analyst, said that stopping coal-plant construction was “as our North American colleagues would say, a no-brainer”. Yet, he added, while “the appetite to build new coal plants is in a dying process, some countries still do it”. He singled out China’s plans to build 50 gigawatts (GW) of new coal plants.
Shutting down existing coal plants, particularly young ones in Asia, is more difficult because the companies that have built and operate them would lose money, Birol noted. There is almost $1 trillion of capital to be recovered from existing coal plants, “so who is going to pay for this?” he asked, calling it “a key issue”.
Birol praised the Just Energy Transition Partnerships that have been set up between wealthy countries and several coal-reliant emerging economies like South Africa and Indonesia to help address the problem. He added that “there are some countries in Asia who can, in my view, afford to retire their coal plants earlier”, without mentioning which.
Malaysia’s Deputy Prime Minister Fadillah Yusof announced at the event organised by the Powering Past Coal Alliance, which includes 60 countries, that Malaysia aims to reduce its coal-fired power plants by half by 2035 and retire all of them by 2044. It will also tackle social and economic challenges through reskilling programmes for workers and promoting renewable energy adoption, he added.
Speaking later at London’s defunct Battersea power station, Indonesia’s deputy minister for maritime affairs and investment, Rachmat Kaimuddin, explained some of the challenges his country faces in phasing out coal.
Kaimuddin (right) speaks alongside Germany’s climate envoy Jennifer Morgan (centre) in London on June 24, 2024. (Photo: Powering Past Coal Alliance)
After China and India, Indonesia has the world’s biggest pipeline of new coal power plants under construction. Kaimuddin said the state energy company would not build any more but added that cancelling existing contracts is “very, very difficult” unless the company constructing the plant wants to pull out – which none have yet.
In addition, shutting down existing power power plants is expensive, he said, because many coal power plants have “take or pay” contracts signed in the 1990s under which the government pays them whether their electricity is required or not.
Another concern is that the Southeast Asian nation does not want to lose its energy security in the switch to renewables, Kaimuddin noted. Indonesia currently mines domestically most of the coal it uses. “We’re trying to partner with other people to try to build [a] renewable supply chain in the country,” he said.
Millions of people in Indonesia work in the coal industry, he added, so a shift towards clean energy will need to include new jobs for them. “It doesn’t have to be green jobs – it has to be jobs, right?” he said.
Singapore’s climate ambassador Ravi Menon told the same event that the economies of China, India and Indonesia are growing and so are their energy needs, meaning that renewables have to be rolled out rapidly to meet demand.
Energy storage is also required to smooth intermittent supply from solar and wind, while electricity transmission infrastructure, including power lines, is needed to transport power from solar and wind farms to cities that account for a large share of consumption.
Both Kaimuddin and Menon said carbon credits should be used to offset losses for the owners of coal plants that are shut down early. “Retiring [plants] definitely will destroy financial value and… and we also need a better way to compensate them,” said Kaimuddin.
(Reporting by Joe Lo; editing by Megan Rowling)
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IEA calls for next national climate plans to target coal phase-down
Climate Change
Australia’s climate credibility tested at Pacific Pre-COP talks, as High Court fossil fuel ruling puts government on notice
NADI, FIJI Thursday 8 October 2026 — As the Pacific Pre-COP talks wrap up and Australia prepares to take the reins of COP31 Negotiations in Türkiye next month, Greenpeace Australia Pacific says the government is on notice over fossil fuel expansion and exports, and must accelerate action to align with a 1.5°C pathway.
Following yesterday’s landmark High Court ruling that the climate impacts of coal and gas exports must be considered by New South Wales planning authorities, Greenpeace Australia Pacific is calling on the Albanese government to find the “courage, leadership and grit” to chart a new course away from fossil fuels.
High res images and video from yesterday’s ‘Keep 1.5C Alive’ flotilla in Nadi can be found here
Speaking from Nadi, Shiva Gounden, Head of Pacific at Greenpeace Australia Pacific, said:
“The outcomes of this week’s talks are a drop in the ocean given the scale of need, and urgency of the crisis our communities are facing. It is like taking a glass of water to a burning house if we do not urgently act to address the root cause of the existential threat facing Tuvalu, Fiji and all Pacific countries: fossil fuel expansion.
“The Electrification Pledge must end fossil fuel dependence, not be an end in itself — its ultimate success depends on ensuring electricity comes from renewable sources that displace fossil fuels and align with a 1.5°C pathway. It must be underpinned by justice and backed by finance flowing from polluters to communities.
“Limiting global warming to 1.5°C is a non-negotiable survival line for humanity and Australia must act. The landmark climate advisory ruling from the ICJ is clear — 1.5°C is the moral, the scientific and the legal limit. Continuing down the fossil fuel path, and failing to align efforts with limiting warming to 1.5°C, is a breach of our international legal obligations, and risks making Australia liable for future reparations from climate-vulnerable nations.”
Also in Nadi, Dr Simon Bradshaw, COP31 Lead and climate expert at Greenpeace Australia Pacific, said: “The Pacific was never going to be a mere backdrop for Australia in its role as incoming chair of the COP31 climate talks, but where its credibility and commitment to climate leadership would be tested.
“Here we see communities fighting for their survival and doing everything possible to hold the line on returning warming to 1.5°C. When governments profess to take their concerns seriously, only to then throw more fuel on the fire, the pain and sadness is visceral.
“This week the High Court of Australia recognised what the Federal Government refuses to — that Australia is responsible for the climate damage of our fossil fuel exports and if governments don’t act, the courts will intervene. The message is simple: this is not someone else’s problem, it is ours.
“We must now follow other countries in developing a national roadmap away from fossil fuels that ensures a managed wind-down of fossil fuel production, including exports, in line with our legal obligation to help return warming to 1.5°C.”
ENDS
Media contact: Kate O’Callaghan in Nadi on +61 406 231 892 (Whatsapp/Signal)
Climate Change
New Zealand accused of breaching EU trade deal over climate rollbacks
A Dutch NGO has filed the first climate complaint under the European Union’s trade rules, arguing that New Zealand violated the environmental provisions of its free trade agreement with the bloc by weakening its climate regulations.
The case will test whether binding climate provisions in the EU’s free trade deals can be enforced to hold governments accountable to their climate obligations, experts told Climate Home News.
The EU-New Zealand free trade agreement, which came into force in 2024, was the first in the world to include legally-binding climate provisions and possible sanctions for violating them, as the EU seeks to use its trade partnerships to advance greater environmental protection.
Under the deal, both parties committed not to weaken their environmental law to promote trade or investment and to “refrain from any action or omission that materially defeats the object and purpose of the Paris Agreement”.
At the time the agreement was signed, EU Commission President Ursula von der Leyen said the agreement included “unprecedented social and climate commitments”. But experts warned it was unclear how the Paris Agreement provisions would be enforced.
The EU included a similar “trade and sustainable development” clause in 14 other bilateral trade deals in recent years, with several others, including with China, awaiting ratification or being negotiated.
Climate activists at the Dutch NGO Both ENDS argue that the New Zealand government breached these terms by reopening its waters to offshore oil and gas exploration, releasing a climate plan that barely requires any emissions reductions, and passing a law that prevents corporations from getting sued over climate damages.
“Here, we have a so-called gold standard for free trade agreements with sustainability provisions but we have a trading partner that is doing exactly the opposite: regressing, as all the evidence points to, away from the Paris Agreement,” said Marius Troost, a senior policy advisor at Both ENDS.
Can the EU enforce its climate trading rules?
The Dutch environmental group filed the complaint under the EU Commission’s Single Entry Point, a mechanism that allows civil society to request enforcement of the bloc’s trade commitments.
The EU-New Zealand trade deal includes the possibility of suspending beneficial trading arrangements between the two parties in response to serious violations of its climate provisions. This, Troost said, is a “unique” tool to enforce both parties’ obligations under the deal.
“This is an opportunity for the EU and New Zealand to show that they are actually serious about these commitments,” he told Climate Home News.

A spokesperson for New Zealand’s Ministry of Foreign Affairs and Trade denied any violations of the agreement and said the government hadn’t received formal notice of the complaint. The country, they said, “takes its commitments under the NZ-EU Free Trade Agreement seriously, including the agreement’s environment and climate-related provisions”.
An EU Commission spokesperson said it will start a preliminary assessment of the complaint and engage with NGO Both ENDS. “Sustainability is a central pillar of the EU-New Zealand relationship,” they added.
The EU is New Zealand’s second-largest trading partner after China, with about 14% of the country’s exports going to the European market. Agricultural products like meat, diary, fruit and vegetables are the country’s biggest exports to Europe.
New Zealand is ‘having its cake and eating it’
Eliza Prestidge-Oldfield, a senior legal researcher at the New Zealand-based Environmental Law Initiative, which is supporting Both ENDS’s claim, told Climate Home News that if the EU upholds the complaint, both parties would begin a negotiation process.
“The idea is to try and resolve this positively with the New Zealand government acknowledging areas where it needs to change its actions in order to comply with the agreement, and get that change in place as soon as possible,” she said.
But New Zealand’s right-wing coalition government said it won’t take any directives from foreign actors regarding its policies. Trade minister Todd McClay told local media that it was “not for overseas countries, organisations or lobby groups to tell New Zealand how to meet its obligations”.
Prestidge-Oldfield argued the complaint isn’t about “Europe telling anyone what to do at all”, but rather stressing the conditions under which they are willing to import goods from New Zealand. “The New Zealand government is trying to have its cake and eat it too,” she said.
If New Zealand refuses to adjust its policies in line with the agreement, the complaint will be assessed by an independent panel, which can require the country to make changes. If those changes are not implemented, the panel could decide that New Zealand should lose its preferential EU market access.
A negotiated resolution is more likely, however, with no prior labour-related complaints to the EU having ever reached the panel stage.
Alexander Gillespie, a law professor at the University of Waikato in New Zealand, said sanctions would be a “last resort”. “This is a test case, which will generate considerable attention – as it is not just about climate change, but how free trade and environmental sustainability have been woven together,” he said in a statement.
Trade deals as tool for climate accountability
Experts said the case could set a precedent for how trade deals can be used to hold governments accountable on climate action. The EU has enacted similar “trade and sustainable development” clauses in its trade agreements with Canada, Japan and South Korea.
While still pending ratification, the EU’s 2024 trade agreement with Mercosur – which encompasses Argentina, Brazil, Paraguay and Uruguay – also includes climate provisions, including a commitment to “effectively implement” the Paris Agreement and promote low-carbon trade.
In addition, legal researcher Prestidge-Oldfield noted that last year’s landmark advisory opinion on climate change by the International Court of Justice (ICJ) laid out stronger climate obligations for developed countries like New Zealand and could strengthen allegations of violations of the terms of the trade deal.
“It will be an interesting area to watch how the EU free trade agreement is interpreted in the light of this advisory opinion,” she said.
The post New Zealand accused of breaching EU trade deal over climate rollbacks appeared first on Climate Home News.
New Zealand accused of breaching EU trade deal over climate rollbacks
Climate Change
Australia says COP31 co-presidency will work on a cover decision
Australia and Türkiye have agreed to take forward a “presidency-led decision for COP31” after consulting with different countries and groups, Australia’s climate change and energy minister said on Wednesday at the pre-COP meeting in Fiji.
The announcement that November’s climate conference will produce what is known among negotiators as a “cover decision” lays to rest the annual speculation over how the main outcomes of the UN climate conference will be presented this year.
Unlike other formal decision texts at COP, cover decisions are not negotiated word by word between governments. They are often summaries crafted during the proceedings by the presidency, although they still need to be adopted by consensus. Cover texts bring together key elements and initiatives emerging from the discussions at the two-week UN climate talks and give a sense of the political direction of travel for the coming year.
Australian minister Chris Bowen, who will preside over the negotiations at COP31 in the Turkish seaside resort of Antalya, said the presidency did not want to negotiate “a lengthy political statement”. The two countries are sharing the presidency in an unusual arrangement, although Türkiye has the formal title of COP31 President.
The decision, he explained, will be one that “captures the global moment and calls for action”, adding that it would offer “a focused and concrete response to the challenges and opportunities of our time”.
Bowen said the text could recognise the recent UN report acknowledging that an overshoot of the 1.5C warming limit is now inevitable, but temperatures could be brought back down to that level. The decision could also stress “the urgent need for climate action, support and international cooperation to go further and faster”, he added.
With COP31 President Murat Kurum sitting next to him, smiling and nodding, Bowen said the joint presidency aimed to be open and transparent, giving governments an early idea of what to expect from the COP31 process.
Earlier in the week, they published a second joint letter laying out key areas for progress at the negotiations, from setting up a just transition mechanism to putting science at the centre of the next global stocktake of climate plans and focusing governments on the need to increase adaptation finance.
Cosima Cassel, climate diplomacy lead at think-tank E3G, said a COP31 cover decision should send a clear political signal that accelerating climate action is central to global security, prosperity and resilience, show that faster implementation can help address 1.5C overshoot, and support developing countries to put their climate plans into practice.
EU keen to know “what success looks like”
Earlier on Wednesday, Europe’s climate commissioner Wopke Hoekstra told journalists in Fiji that the European Commission had asked the UN and COP31 organisers to provide clarity on the summit’s agenda and “what success would look like” in Antalya.
That is why, he added, “I… like it a lot that the organisers are pushing for electrification and are already clear about it upfront”.
A voluntary goal for electricity to provide 35% of the world’s final energy consumption by 2035, up from 23% today, was announced by Türkiye at the Bonn mid-year climate talks. It has si


