When Israel’s prime minister approved a $35-billion deal to supply natural gas to Egypt last month, Energy Minister Eli Cohen said the benefits of increased gas trade with its neighbour went far beyond money.
“The approval of this gas agreement is a historic moment for the State of Israel, both in the security-diplomatic sphere and the economic sphere,” Cohen said on December 17.
In contrast, Egyptian officials – sensitive to the optics at home due to widespread anger over Israel’s military offensive in Gaza – played down the political significance of the deal, saying it was “purely commercial”.
The deal’s final approval, which had been delayed by several months, reflects Israel’s commitment to ramp up offshore gas extraction as a way to assert its regional dominance and shore up economic ties amid international criticism over the war in Gaza, analysts say.
While Israel has a globally renowned clean-tech sector, the push on fossil gas underscores how climate action is low on the country’s priority list.
Climate action takes a backseat
Shortly before the gas export deal was finalised, at COP30 in Brazil, Israel declined to add its voice to calls by more than 80 countries for a roadmap to transition away from fossil fuels. And before that, in October, the Energy Ministry said the country would fail to meet a 2025 target for renewables to make up 20% of its energy mix.
Israel’s latest climate plan sets a target to reduce greenhouse gas emissions 27% by 2030 from 2015 levels, and it has not yet presented an updated nationally determined contribution (NDC) due in 2025.
The government of Prime Minister Benjamin Netanyahu is also preparing to launch a new offshore gas exploration campaign within weeks, following the signing in October of a ceasefire agreement to end two years of war between Israel and the Hamas militant group in Gaza.
Beyond the Middle East, Israel’s gas push also highlights another challenge for the global clean energy transition as fossil fuels play a key role in political instability and conflict, from Ukraine to Venezuela.
Fuelling the economy
Fossil gas accounts for about 70% of Israel’s energy mix, followed by renewables – mainly solar – and coal.
Last year, the 27 billion cubic metres (bcm) of gas extracted off Israel’s coast were split almost evenly between domestic consumption and exports to Jordan and Egypt, the only two buyers of Israeli gas, both of which are vocal allies of the Palestinians.
Despite their condemnation of the war, neither country sought to halt the gas trade during Israel’s military campaign in Gaza, which killed about 71,000 Palestinians and left most of the coastal enclave in ruins.
Israeli gas exports to both countries increased 13% during 2024, maintaining an upward trend in shipments of the fossil fuel since 2018.
“Both Egypt and Jordan may signal solidarity with Palestinians in public, but their infrastructures tell a different story,” wrote Rafeef Ziadah, a UK-based scholar and human rights activist.
Israel’s gas exports to Egypt were halted for several weeks in 2023 when the war began, and again in 2025 when Israel launched a brief air war against nuclear sites in Iran – disrupting an increasingly important supply of energy to Egypt, which has faced power shortages in recent years as its own gas production dwindled.
Egypt is heavily dependent on fossil gas for energy generation, with renewables, mainly hydropower, making up only about 11% of the power mix, according to data from the Ember think-tank.
For Israel, gas is a win-win trade
Gas production has also been an important source of revenue for Israel, and income has been growing in recent years, including during the war in Gaza. Israel’s gas revenues grew in 2024 to 2.3 billion shekels ($720 million) from 2.1 billion a year earlier, official data shows.
Some of the gas proceeds feed Israel’s sovereign wealth fund, but much of the income from gas – mainly royalties and corporate tax – goes directly to state coffers, helping to fund Israel’s occupation of the West Bank and the Gaza war, both of which are opposed by Jordan and Egypt.
Laury Haytayan, a Middle East and North Africa energy expert, described the gas ties between Israel and Egypt as a “kind of co-dependence”.
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While that might be politically uncomfortable, Egypt’s energy crisis means it cannot afford to be choosy, analysts say.
“Israel remains an important pillar of the energy supply in neighbouring countries, contrary voices notwithstanding,” Israel’s Petroleum Commissioner Chen Bar Yoseph told Climate Home News.
The recent finalisation of the Egypt export deal also drew praise from Israel’s main international ally, the United States, with the State Department calling it “a major win for American business and regional cooperation”.
US oil major Chevron, which holds a 40% stake in Israel’s offshore Leviathan field and operates the field, plans to expand it as a result of the agreement.
“More gas will be found”
When Netanyahu announced his approval of the deal, he said it would encourage other companies to explore for more gas resources off the Israeli coast.
“More gas will be found,” Netanyahu said, two weeks after the Energy Ministry said it was close to launching a new tender for gas exploration in offshore blocks.
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The deal signed between Egyptian firm Blue Ocean Energy and Chevron, along with its partners in Leviathan, will see 130 billion cubic metres of Israeli gas pumped to Egypt over the next 15 years. Israeli media reports linked the planned offshore gas expansion to concerns over limited gas reserves which resurfaced in the wake of the export agreement.
Israeli officials hope the ceasefire in Gaza, coupled with the finalisation of the Egypt deal, will boost international interest in the bidding, which could take place early this year.
Pro-Palestinian groups denounce exploration
Climate and environmental campaign groups, meanwhile, have repeatedly demanded that Israeli gas exploration be frozen, citing the potential consequences for planet-heating emissions and marine ecosystems.
Palestinian human rights NGOs have warned that the hunt for fossil gas could also expand Israel’s illegal exploitation of Palestinian natural resources since several maritime zones earmarked by Israel for gas exploration overlap waters claimed by Palestinians in a 2019 submission to the UN Convention on the Law of the Sea (UNCLOS).
“Israel cannot operate there unilaterally. It is not an Israeli territorial or economic zone with authority to operate there,” said Suhad Bishara, legal director at Adalah, an Israel-based organisation focused on promoting Palestinian rights.
“Any company that agrees, or enters, or is associated with drilling in this area is complicit in breaching international law,” Bishara said.
Whether or not more exploration licences are granted, some experts question how much more undiscovered oil and gas lies beneath the seabed off Israel.
Geologist Yossi Langotsky, considered the father of Israeli offshore gas, has long maintained that the Leviathan and Tamar fields – which are not in areas claimed by the Palestinians – are the only large gas reservoirs along Israel’s coast.
For as long as the two fields are producing enough, Israel will likely find a willing buyer in energy-hungry Egypt – whatever the geopolitical backdrop.
“Even when regional leaders rail against occupation or genocide, the gas keeps flowing,” said Ziadah, the UK-based rights activist.
The post Israel’s fossil gas power play pushes climate action to the sidelines appeared first on Climate Home News.
Israel’s fossil gas power play pushes climate action to the sidelines
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.
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Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.
“Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.
The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.
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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