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The Indian government weakened rules to curb pollution caused by its expanding coal industry after lobbying by top producers, even as it agreed internationally to phase down the use of coal, an investigation by Climate Home has found. 

India’s coal giants pushed back hard against environmental regulation meant to tighten up the disposal of fly ash – a byproduct of coal-fired power plants known to harm both humans and the environment if not managed properly.  

Letters sent by coal companies to the Indian government – and accessed by Climate Home News through freedom of information requests to government agencies – reveal lobbying efforts to weaken federal rules between 2019 and 2023.

The state-run firms involved were Coal India Limited (CIL), the world’s third-biggest coal mining company, and National Thermal Power Corporation (NTPC) Limited, one of the top 10 coal-fired power companies globally.   

Top management at the coal giants claimed their organisations would not be able to comply fully with the government regulations, aimed at controlling fly ash disposal after decades of public health impacts for local communities. Even after the rules were approved, the companies continued efforts to weaken them, in some cases successfully. 

Residents of Kuruvimedu village in Tamil Nadu show coal dust and fly ash on 10 March 2017 (Photo: Sajan Ponappa/Greenpeace)

NTPC argued financial constraints would keep them from meeting the new requirements to clean up waste accumulated over decades and prevent further ash pollution, according to the accessed documents.  

In some cases, lobbying got results and regulations were eased, with the environment and power ministries drawing on arguments from both companies in official correspondence between government agencies.  

Climate Home contacted the two coal companies and India’s Ministry of Environment, Forest and Climate Change for comment on the issues raised in this article but did not receive a response.

COP26 commitment

In 2021, while the proposed fly ash mandates were under discussion in India, the country was negotiating the COP26 climate pact in Glasgow, which calls on all governments to take action “towards the phase-down of unabated coal power”.  

At those UN talks, India rejected stronger language on a global shift away from coal, but it agreed to scale back unabated coal power, which is produced without technology to reduce its climate-heating emissions.   

Despite this deal, coal infrastructure around the world has since grown, mostly driven by added coal mining and power capacity in India, China and Indonesia.  

The Indian documents obtained by Climate Home reveal that the South Asian nation’s coal companies lobbied against regulations on fly ash pollution while expanding coal production at record speed. 

In their correspondence with ministries, they argued that high fines for non-compliance with waste disposal rules were a risk to their financial sustainability and raised the prospect of coal-fired power plants being shut down, triggering a power crisis in the country.  

A letter from the NTPC’s director of operations to the environment ministry on February 8, 2022. Highlights by Climate Home News

Fly ash pollution 

When thermal power plants burn coal for energy, the fly ash they generate as a byproduct is dumped in water-filled, dam-like structures called dykes. 

Old “legacy” dykes store ash from previous decades and are a major source of pollution for nearby communities, explained independent air pollution analyst Sunil Dahiya. Wet ash can leach into groundwater, while dry ash can blow away, causing air pollution and damaging crops. 

Functioning disposal sites are also vulnerable to heavy rains, as they can overflow and pollute nearby settlements. This happened on at least three occasions between 2019 and 2021, according to a 2021 report by the NGO Fly Ash Watch Group.  

To minimise the impacts of fly ash, companies can recycle it into products like bricks, cement sheets, panels and other construction materials – a process known as “utilisation”. 

Children playing beside one of the many ash dykes of the NTPC Sipat Thermal Power Plant on March 11, 2017 (Saagnik Paul/Greenpeace)

Sehr Raheja, climate change officer at the Indian think-tank Centre for Science and Environment (CSE), highlighted the need to utilise “legacy” ash given “the enormous quantity”, adding there are risks involved with it staying underground, such as water and soil pollution. 

As of 2019, the amount of accumulated unused ash in the country was about 1.65 billion tonnes, according to a CSE report, with newer estimates suggesting even more, she said. 

“Loophole” in regulation

Fly ash regulation – known officially as the Fly Ash Notification – has been in place in India since 1999. But it was not until a 2021 update to the rules that fines were introduced for failing to comply with proper waste disposal, following the ‘polluter pays’ principle. 

The regulation also imposed a mandate on thermal power plants to ensure 100% utilisation of accumulated old fly ash, as well as fresh ash produced by ongoing operations. 

Documents accessed by Climate Home show that NTPC exchanged letters with government agencies asking for elimination of the mandate to clean up accumulated ash.  

“It is proposed that the provisions for utilization of old legacy ash may be dropped,” reads a 2021 letter from NTPC to the Ministry of Environment, Forests and Climate Change. 

A letter from NTPC’s managing director to the environment ministry on June 11, 2021. Highlights by Climate Home News

The 2021 rules were nonetheless passed, and they did introduce strict fines for coal companies. However, they also included what experts called a “loophole”. 

The fly ash regulation exempted power plants from having to find a use for their old legacy ash as long as the ponds where it was stored were considered “stabilised”, meaning they had been secured against leakage. But the technical specifications of how that should be done were not defined, leading to concerns that arbitrary exemptions could be granted. 

Yet even after these revamped regulations came into force in late 2021, lobbying intensified. 

Persistence pays off

In 2022, NTPC was still concerned by a deadline of 10 years to utilise all legacy ash accumulated over decades, according to a letter addressed to the environment ministry. This would force them to transfer large quantities of fly ash to end users like brick-making kilns or ceramic product makers – or pay fines.   

NTPC met with regulators at the Ministry of Power and agreed an extension to the period for stabilising old ash dykes from one to three years.  

In the case of “operational” ponds, officials were persuaded not to label them as legacy ash, exempting them from the requirement for full utilisation. These changes were included in a 2022 amendment to the rules. 

Indian coal giants pushed for lax pollution rules while ramping up production

A civil servant’s notes from a meeting between government officials and the NTPC on 5 July 2022. Highlights by Climate Home News

Shripad Dharmadhikary, who leads civil-society research group Manthan Adhyayan Kendra and has worked on fly ash management, said the unclear definition of stabilisation and longer time-frame for doing it provided “a loophole for power plants to evade use or proper disposal of legacy ash”

The lack of technical parameters meant government authorities could struggle to guarantee that no more leaks would occur even if they certified the ponds, he added. 

“Threat” to coal industry finances 

The powerful companies also managed to limit the level of fines for non-compliance in a prolonged effort that began in 2020, when the first draft proposal on the new fly ash rules was circulated among coal companies. 

That included a fine of Rs 1,500 (about $17.80) per tonne, which was cut to Rs 1,000 ($11.90) in the final 2021 rules after NTPC and other coal companies opposed it and asked for it to be removed entirely. 

Even after this, executives from both Coal India and NTPC expressed alarm about the financial implications of the fines. 

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In a February 2022 letter to the Ministry of Environment, for instance, NTPC’s then director of operations Ramesh Babu V. wrote that the company could end up paying Rs 76,000 crores ($9 billion) over a decade – an amount “significant enough to threaten financial viability of NTPC and country’s thermal sector alike”. He warned that the penalties could make large power stations at mining pit heads commercially unviable, leading to a “power crisis”.  

Similarly, in a 2023 letter, CIL chairman and managing director Pramod Agrawal estimated that the “financial penalty” on only one of its subsidiaries (NCL) for failure to comply with the regulations could cost the latter Rs 38,145 crores (at least $4 billion) for just the 2022-2023 financial year.  

Coal expansion 

However, the threats the executives outlined to their companies’ bottom lines do not appear to have translated into lower capacity to mine coal and produce thermal power, as both were ramped up drastically during and after discussions on the Fly Ash Notification. 

Expansion efforts were redoubled especially after an unprecedented power crisis in late 2021, which was attributed to logistical issues causing a shortage of coal supply 

In a January 2024 conference call with investors, NTPC’s management said it was considering awarding thermal power capacity of 15.2 gigawatts (GW) in the near future, on top of the 9.6 GW thermal capacity already under construction for the group.  

CIL, in its latest annual report, announced plans to increase coal mining capacity to 1 billion tonnes by the financial year 2025-26.  

G20 waters down experts’ climate finance report, despite UN pressure to act

A previous investigation by Climate Home News showed that European asset managers invested substantially in both NTPC and CIL, helping India’s coal industry to grow rather than phase down in line with international commitments.  

Air pollution expert Dahiya said that, while India has lower historical emissions than countries in the Global North and requires flexibility to meet its energy needs, as well as international support to move away from fossil fuels, that did not mean coal companies should be “free to pollute”. 

Raheja, of the CSE, said better controls on pollution were also a matter of justice for those living near coal-fired power plants. 

“The environmental regulations are critically important for maintaining the health of the environment and of communities residing near coal facilities – even of people far away – as pollution, both through air and water, can be carried to a distance,” Raheja told Climate Home News. 

 (Reporting by Akshay Deshmane; editing by Sebastian Rodriquez, Megan Rowling and Joe Lo; fact-checking by Matteo Civillini)

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Indian coal giants pushed for lax pollution rules while ramping up production

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Climate Change

Coles, Woolworths failing on deforestation commitments 

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SYDNEY, Wednesday 26 August 2026 — New 2026 Sustainability Reports released by supermarket giants Coles and Woolworths this week demonstrate the retailers are failing on their commitments to end deforestation in their supply chains.

Adele Chasson, Nature Policy Lead at Greenpeace Australia Pacific said:

“These so-called sustainability reports are revealing. Despite their public commitments in 2024 and 2025, neither Coles nor Woolworths have taken deforestation-linked beef off their shelves. Meanwhile, bulldozers continue to tear up forests and bushland, pushing wildlife closer to extinction and causing mass toxic runoff to flow into the Great Barrier Reef. Millions of native animals like koalas are losing their homes to beef pastures each year, while the big supermarkets put off action.

“Australians would be shocked to know that beef on the shelves of our biggest supermarkets could be pushing threatened species to the brink of extinction. Collectively Coles and Woolworths have made more than $2 billion in profits in the last year, profiting from the destruction of wildlife and precious Australian nature. Coles and Woolworths owe it to shoppers to deliver on their promises and end deforestation in their supply chains now.

“As big beef buyers, Coles and Woolworths have an essential role to play in keeping Australia’s unique forests standing. They can help stop the Great Barrier Reef from being poisoned by runoff and protect iconic forest wildlife by taking deforestation off their shelves. It’s time these big companies put their money where their mouths are and follow through on their promise of sourcing and supplying deforestation-free beef.”

Coles, Woolworths failing on deforestation commitments 

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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.

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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.

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