Neat rows of new houses with solar panels on their turquoise roofs radiate out from the quiet central square of Aghali, a government-branded “smart village” in south-western Azerbaijan. A path lined with yellow bushes leads to the river, where a state-of-the-art hydropower plant produces clean electricity for residents.
Aghali is a pioneering example of Azerbaijan’s plan for “green” reconstruction of the territories it captured after a long, bloody conflict with Armenia, centred on the disputed Nagorno-Karabakh mountainous enclave.
Hundreds of Azeris displaced from the region in the early 1990s have moved back to Aghali, a local government official told Climate Home.
“The emotional link to these territories is very strong even though 30 years have passed,” the official said. “Our people are happy to be back”.
The government says more than 100,000 Azeris will return to populate the 30 or so new towns and villages planned across the area by 2026, which are expected to run mainly on clean energy and aim for “net zero” emissions.
Yet a more troubled story lies beneath the shiny surface presented by the authorities – part of Azerbaijan’s efforts to polish its green credentials before the COP29 UN climate summit it will host in November.
Some 136,000 ethnic Armenians who had called Nagorno-Karabakh their homeland fled in a mass exodus during a two-part military offensive by Azerbaijan that started in 2020 and ended last autumn.
For Armenian authorities and some human rights and legal experts, the drive amounted to “ethnic cleansing” – a phrase used in a European Parliament resolution on the conflict. A spokesperson for COP29 told Climate Home the Azerbaijan authorities “categorically reject this view”.
With the fighting now over, the two sides are engaged in talks to build a lasting peace. They struck an initial agreement to establish border demarcations in April, but hopes of a swift breakthrough on a permanent solution remain slim.
Meanwhile, displaced Armenians have said publicly they fear the heritage sites and homes they hastily left behind will be erased under a giant construction effort. Evidence of this was seen last month by Climate Home on a press trip organised and sponsored by the COP29 Presidency team, which controlled access to locations and sources in the region.
‘Net zero’ vision
Azerbaijan has built its prowess, both on and off the battlefield, on the strength of its vast oil and gas reserves. Around 60 percent of the government’s budget is financed through the sale of fossil fuels, primarily via export to Europe.
Last month, Azerbaijan President Ilham Aliyev called oil and gas “a gift from God” at the Petersberg Climate Dialogue in Berlin, signalling continued investment in increased gas production. That is despite signing up, like all countries, to a global agreement to transition away from fossil fuels “in keeping with the science” at the COP28 UN climate summit in Dubai last December.
Nonetheless, as its capital Baku gears up to host COP29, Azerbaijan also wants to show off its efforts to adopt clean energy and cut planet-heating emissions to the outside world.
Nagorno-Karabakh, and the surrounding provinces, lie at the centre of this push. The government has declared a “green energy zone” here, adding a dozen hydropower plants, and seeking to attract foreign investment in solar and wind.
Azerbaijan President Ilham Aliyev in front of a screw turbine hydro power plant in Zangilan, one of the territories recaptured in 2020. Photo: Azerbaijan Presidency
Across the country, the government wants renewables to make up 30 percent of its installed electricity capacity by 2030 – up from 7 percent in 2023. The main motivation is to reduce the use of gas in its own power stations so that more of it can be shipped to Europe, President Aliyev said during an event at ADA University in Baku in April.
Azerbaijan is also planning to achieve “net zero” carbon emissions in Karabakh by 2050, as outlined in its latest national climate action plan (NDC) submitted under the UN climate process. It says that “to revitalise the territories liberated from occupation”, the government will establish “smart” settlements, promote “green” energy zones, agriculture and transport, and reforest “thousands of hectares”.
For Anna Ohanyan, a senior scholar in the Russia and Eurasia programme at the US-based Carnegie Endowment for International Peace, “it’s greenwashing of an ethnic cleansing, pure and simple”.
“Azerbaijan is putting a stamp on the territory as a way to legitimise the conquest of Nagorno-Karabakh and doing so under the pretence of helping fight climate change,” she told Climate Home.
The COP29 spokesperson said in emailed comments that this view “has no basis in fact”, adding that Azerbaijan is rebuilding houses for its citizens who were internally displaced during the conflict, “according to UN sustainability standards”.
Disputed territory
Territorial disputes over the Nagorno-Karabakh region have a long and complex history.
“Azerbaijan and Armenia – both are convinced this is historic patrimony of their people,” said Audrey Altstadt, a professor of history at the University of Massachusetts Amherst who specialises in Azerbaijan.
As the Soviet Union set about governing its far-flung provinces in the 1920s, then Commissar of Nationalities, Joseph Stalin, ruled that the region should be part of Soviet Azerbaijan, even though ethnic Armenians made up 94% of its population at the time.
In the 1980s, alongside the fall of the Soviet Union, tensions began to rise after Nagorno-Karabakh’s governing authorities declared their intention to join Armenia and Azerbaijan reacted by attempting to suppress separatists.
After the two sides gained independence from the Soviet Union in 1991, clashes between them escalated into an all-out war.
By the time fighting stopped three years later, Azerbaijan had suffered a crushing defeat, losing not just Nagorno-Karabakh but also a sizable chunk of territory around it. Ethnic Armenians declared a separatist republic in the region with the backing of Armenia.
Evolution of territorial control over Nagorno-Karabakh, and surrounding districts, from the aftermath of the 1994 war until today. Graphic: Fanis Kollias
Some 870,000 Azeris abandoned their homes in the captured area and Armenia itself, while around 300,000 ethnic Armenians fled Azerbaijan, according to the United Nations’ refugee agency.
For 15 years the conflict remained frozen, while international actors – led by the United States, France and Russia – tried, and failed, to find a peaceful resolution.
Azerbaijan’s autocratic president, Aliyev, took matters into his own hands in September 2020, mounting a large-scale military offensive on Nagorno-Karabakh. Powered by more sophisticated weaponry, and backed by Türkiye, Azeri forces prevailed during a 44-day war that claimed the lives of at least 7,000 people – including over 100 civilians.
Under a ceasefire agreement signed in November 2020, Azerbaijan gained a significant proportion of Nagorno-Karabakh, including the coveted town of Shushi – called Shusha by Azeris – as well as winning control of adjacent districts.
Soon afterwards, Baku announced a colossal programme to rebuild and repopulate the region, establishing “green energy zones” in Nagorno-Karabakh and East Zangezur.
Rebuilding ‘from scratch’
Deep behind a string of police checkpoints, the plan is proceeding apace. It includes Aghali, one of the “smart” villages created by the government to accommodate Azeri citizens displaced from the area three decades ago.
“Everything we build here, starting from houses to schools, is based on the element of solar,” said Vahid Hajiyev, special representative of the Azerbaijan presidency in Jabrayil, Gubadli and Zangilan districts, addressing a group of international reporters.
“The whole area had been devastated,” added Hajiyev, saying it was largely abandoned and littered with mines after Armenia captured it. “We’re doing everything from scratch and that gives an opportunity to do it right.”
A view of Aghali, a “smart” village created by the Azerbaijani government in the territories retaken from Armenia, in April 2024. Photo: Matteo Civillini
A nearby screw hydro turbine provides electricity for the whole village, while homes are equipped with solar water heating systems, officials told Climate Home.
“Smart agriculture” projects are being developed to give work to the more than 860 people who, according to government figures, have already moved into the village, with hundreds more expected to join them soon, they added.
Climate Home was not able to talk to any of the residents, besides government officials, and was not shown around the homes.
Aghali offers a template for around 30 similar villages the Azeri government plans to erect across the captured regions. They are just one part of the mammoth construction drive in the Karabakh area, bankrolled by Baku to the tune of just under $2.5 billion a year – around 12% of total public spending.
While the official vision projects an eco-paradise, in Baku’s breakneck drive to put it into practice, the landscape currently resembles a sprawling construction site, as seen by Climate Home and shown by satellite images.
Travelling up the windy road to Shusha-Shushi just before midnight, the headlights of dump trucks and cement mixers pierced the near-total darkness.
They are the backbone of a giant effort to lay down thousands of kilometres of roads and railways and throw up brand-new airports, vast conference halls, hotels and apartments.
Globally, construction is among the most polluting industries, contributing around 10% of global carbon dioxide (CO2) emissions in 2022, according to the UN Environment Programme (UNEP).
In March 2022, the Azerbaijan government invited observers from UNEP to assess the environmental situation in the territories it had gained, after accusing Armenians of large-scale destruction and contamination of the water and soil.
The UNEP team documented “chemical pollution of water” and “deforestation” as a result of activities in dozens of mines and quarries carried out by the Armenian administration “with inadequate environmental oversight and supervision”.
But it also found that Azerbaijan’s building drive, then still in its infancy, was already putting further strains on the environment, as well as causing climate-heating emissions, thereby “adversely impacting the zero-emission goal for the region”.
The construction of new roads was “having a significant impact on forest cover”, its report stated, while the infrastructure programme “placed a significant burden on finite natural raw materials” extracted from local quarries to make cement or asphalt.
The construction drive is altering the landscape in Nagorno-Karabakh. Photo: Matteo Civillini/April 2024
The COP29 spokesperson said Azerbaijan is following the recommendations of the UNEP report and that “a number of mitigation measures have been undertaken” to curb the environmental footprint of the works.
“We believe that the net impact of the reconstruction effort will actually contribute to Azerbaijan’s climate change and decarbonisation goal,” the spokesperson added.
Nagorno-Karabakh’s net zero target has yet to be extended to the rest of the country. Currently Azerbaijan has a goal to reduce emissions 40% by 2050 and has promised to submit a new NDC that is aligned with limiting global warming to 1.5C, which is due by early 2025.
Environmental blockade
In December 2022, environmental concerns became a weapon in the long-running dispute over Nagorno-Karabakh. Azerbaijani eco-activists blocked the Lachin Corridor, the only road connecting the region to the outside world and a vital supply line for food and medicines.
They were ostensibly demonstrating over the impact of mining in the breakaway region. But, according to close watchers of the conflict, the protesters had been sent there by Baku – a claim denied by the COP29 spokesperson.
At the time, one protester told Climate Home that representatives from the Ministry of the Environment were also present. On many other occasions, the Azerbaijan government has cracked down on political dissent, according to human rights groups.
When, four months later, Azerbaijan erected a permanent checkpoint on the road to “prevent the illegal transportation of manpower and weapons”, the sit-in ended. But the blockade of Nagorno-Karabakh continued with only limited amounts of aid trickling in.
Shortages of food, medications and fuel plunged the region into a humanitarian crisis, according to UN human rights experts.
“In the end, it was hard to even find bread. There were women and kids queuing all night for a piece of bread,” recalled Siranush Sargsyan, an Armenian journalist from Nagorno-Karabakh, in an interview with Climate Home. “Even if they didn’t kill all of us, they were basically starving people.”
On September 19 2023, Azeri forces launched a lightning attack on the parts of Nagorno-Karabakh still controlled by ethnic Armenians in what Baku called “an anti-terrorist operation”. Within 24 hours, the de-facto government of the enclave surrendered and announced the republic would cease to exist the following January.
Fearing violence and persecution, over 100,000 ethnic Armenians – nearly the entire remaining population – fled their homes in Nagorno-Karabakh and sought refuge in Armenia.
Refugees from Nagorno-Karabakh region arrive at the Armenian border in a truck in September 2023. REUTERS/Irakli Gedenidze
“[The] liberation of territories was a main goal of my political life. And I’m proud that these goals have been achieved,” President Aliyev, whose family has ruled over Azerbaijan for the past 31 years, said last December. “I think we brought peace. We brought peace by war.”
Now in full control of Nagorno-Karabakh, Azerbaijan is doubling down on its efforts to reshape the region and move tens of thousands of Azeris there. “We will continue the ‘Great Return’ campaign until all those who were forced from their homes can go home,” the COP29 spokesperson said, referring to internally displaced Azeris.
Government officials told Climate Home that ethnic Armenians are also welcome to go back, but only if they stick to the conditions imposed by Baku.
Journalist Sargsyan said returning to Nagorno-Karabakh under Azeri control is out of the question as she fears for her safety. “I left everything there”, she said. “But I would rather die than end up in a prison in Azerbaijan.”
Heritage destruction
Meanwhile, ethnic Armenians fear the huge Azeri construction drive now underway will erase most, if not all, of their legacy.
Nijat Karimov, a special adviser to Azerbaijan’s presidency, told Climate Home that Baku had destroyed Armenian government buildings in Nagorno-Karabakh for “safety” reasons, without giving specifics. He added that Azerbaijan’s government had since “repaired and rehabilitated” the villages.
A day later, Climate Home travelled past what little remains of Karintak village (known as Dashalti in Azeri). Nestled in a gorge sitting just below Shusha-Shushi, it was home to a few hundred ethnic Armenians until Azeri forces took over at the end of 2020.
Now nearly the entire settlement appears to have been razed to the ground, as Climate Home witnessed. Mounds of disturbed soil surround a large mosque, under construction, and a church, one of the few original buildings left standing.
The village of Karintak (bottom right corner), as seen in April 2024 when Climate Home was taken through the region. Photo: Matteo Civillini
Climate Home asked the COP29 Presidency what had happened to the village. A spokesperson said government experts would need to examine the satellite images, buildings and sites referenced in Climate Home’s question “to get a complete answer”.
The case of Karintak is not an isolated one, according to Caucasus Heritage Watch, a research group led by archaeologists at Cornell and Purdue Universities. They have documented the destruction of at least eight Armenian cultural heritage sites – including churches and a cemetery – in the retaken territories since 2021.
Lucrative contracts
Baku says its grand vision is to repopulate Nagorno-Karabakh and the neighbouring areas, attract foreign business and eventually turn them into tourism destinations. But when Climate Home visited, most of what had been built appeared to be under-used, while access to the region is severely restricted.
Two international airports, completed in just 10-15 months a mere 70 km apart, have very little air traffic, except for the occasional charter flight, tracking data shows. A third airfield is now being erected nearby.
In Shusha-Shushi, a five-star spa hotel complex with sleek marble interiors was inaugurated just over a year ago. When Climate Home walked past last month, there was not a client in sight, with only wandering labourers headed to nearby construction sites.
The 5-star Shusha Hotel appeared empty when Climate Home visited in April 2024. Photo: Matteo Civillini
Historian Altstadt said the reconstruction is being driven by multiple incentives. “Yes, it is to get people back to the land they left over 30 years ago, and it is also to put their stamp on it to show ‘this is our territory and we can do what we want’,” she told Climate Home. “But there is also a lot of money to be made by Azerbaijan’s oligarchs.”
Pasha Holding is a conglomerate controlled by the powerful Pashayev family of First Lady Mehriban Aliyeva. It is heavily involved in the rebuilding of Nagorno-Karabakh. It also manages huge tracts of agricultural land and new hotels, and is opening bank branches and supermarkets.
The vast amount of money – and assets – up for grabs is also attracting considerable foreign interest.
Turkish firm Kalyon – considered to have close ties to Prime Minister Recep Tayyip Erdogan, according to Reporters Without Borders – has won major construction contracts in the territories. And mining permits in Karabakh have been awarded to a group run by pro-Erdogan businessman Mehmet Cengiz.
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British architects Chapman Taylor are earning at least $2.3 million to map out the redevelopment of Shusha-Shushi – which thousands of ethnic Armenians fled following Azeri attacks in 2020 – and will also work on the urban design of other towns.
BP, meanwhile, is developing a 240-megawatt solar power plant in Jabrayil district, with construction expected to begin later this year. Speaking at Baku Energy Week in 2022, Gary Jones, the energy firm’s regional president for Azerbaijan, Georgia and Turkey, praised Baku’s efforts to turn Karabakh into “the heart of sustainable development”.
Adopting contested terminology used by Azerbaijan, he said the “liberated territories” are “blessed with some of the country’s best solar and geothermal resources”, creating the “perfect opportunity for a fully net zero system” that “can be built fresh from a new start”.
BP and Chapman Taylor did not respond to Climate Home’s request for comment.
Special presidential representative Hajiyev told Climate Home that many international companies are interested in working in Karabakh. “It’s a huge investment opportunity because a lot of government incentives are provided here,” he said.
(Reporting by Matteo Civillini in Azerbaijan; editing by Megan Rowling and Joe Lo; fact-checking by Sebastian Rodriguez)
Matteo Civillini visited Nagorno-Karabakh, and the surrounding districts, as part of an “energy media tour” organised and sponsored by the COP29 Presidency.
The post In Nagorno-Karabakh, Azerbaijan’s net zero vision clashes with legacy of war appeared first on Climate Home News.
In Nagorno-Karabakh, Azerbaijan’s net zero vision clashes with legacy of war
Climate Change
New Zealand moves to protect business with law curtailing climate litigation
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.
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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.
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New Zealand moves to protect business with law curtailing climate litigation
Climate Change
Indonesia’s nickel production cuts are not enough to create a sustainable industry
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.

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.
Indonesia’s nickel production cuts are not enough to create a sustainable industry
Climate Change
Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans
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
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Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
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Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
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Renewable Energy10 months agoSending Progressive Philanthropist George Soros to Prison?
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Greenhouse Gases1 year ago
嘉宾来稿:探究火山喷发如何影响气候预测
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Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits





