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A new programme to boost the climate resilience of drought-hit farmers in Iraq. Electricity installations that would give millions across Southern Africa access to clean energy. The conservation of critical ecosystems in Honduras to help local communities improve their livelihoods at home instead of needing to migrate to countries like the United States.

These and hundreds more climate programmes funded by the US government risk disappearing as an administration led by President Donald Trump and tech billionaire Elon Musk threatens to shutter the state aid agency, USAID, and slash overseas development assistance.

“I think this is the end of US [government] climate funding,” predicted Karen Mathiasen, a project director with the Center for Global Development, a Washington-based think-tank. In an interview with Climate Home, she described as “shocking” the speed and brazenness with which the government is attempting to dismantle its foreign aid arm.

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Aid organisations and contractors have been grappling with an unprecedented crisis since, on his first day in office, Trump ordered a 90-day funding freeze during which a programme-by-programme review would be carried out.

As the world’s largest bilateral development assistance agency, USAID is a major provider of grant-based finance for climate action in the Global South. Its climate programmes – amounting to close to half a billion dollars in 2024 – help countries cut greenhouse gas emissions and protect their citizens from the escalating effects of global warming.

Secretary of State Marco Rubio – who is now in charge of USAID’s work – said last week that only projects that make “America safer, stronger or more prosperous” will survive the cull, without explaining which criteria would be used for the assessment.

‘Devastating’ consequences

The sudden move has thrown the development world into disarray, with organisations forced to halt their operations overnight and furlough or lay off staff without being able to obtain clear information or guidance from US officials.

A USAID project in Honduras strengthens the sustainability of coffee farming. Credit: USAID/Honduras Transforming Market

Speaking to Climate Home, aid workers involved in USAID-funded climate projects in the Global South painted a picture of bewilderment and confusion.

“We are no longer able to transfer funds to our local partners – and it will be really hard for them to manage costs,” explained one senior official at a global humanitarian group, underscoring the “devastating” consequences of the funding freeze for frontline organisations.

Working in conflict-afflicted regions, the aid group supports projects to build climate resilience that struggle to attract any financing outside of development money, said the official, adding “that has all gone away now”.

“For many programmes a 90-day pause is as good as a cancellation because you lose all momentum, you lose community connection, you lose the trust you built up with communities which is vital to success,” they added.

Separately, in Malawi, Climate Home has learned that all USAID-funded projects have been halted, with staff members being told to remain at home, just as the country was hit by deadly floods last week.

Climate aid powerhouse

Climate Home analysed USAID’s portfolio of climate projects before its website went offline late last week, soon after Trump-ally Musk, the world’s richest man, labelled the agency as “a criminal organisation”, without providing evidence – and called for its closure.

One of USAID’s single largest climate projects supports the large-scale roll-out of clean energy facilities across Southern Africa. With total budgeted funding of $84.5 million up to 2028, the programme aims to set up 3 million new electricity connections and avoid 14 million tonnes of planet-heating emissions – equivalent to the annual carbon footprint of Ivory Coast.

Other large US-backed renewable energy projects target Central Asia, Eastern Europe, Ecuador, Colombia and Bangladesh. The vast majority of these are implemented by profit-making American corporations that would be financially hit by any funding cuts.

Climate adaptation also features prominently in USAID’s portfolio. In the last year alone, the agency committed $22 million to boost the ability of farming communities in Iraq to deal with climate-related drought and $18.5 million to help the adoption of climate resilience measures in Palestine. Similar initiatives have been in place in dozens more countries across the Pacific, South Asia, sub-Saharan Africa and Latin America.

Many other USAID projects include climate-related activities – even if they are not explicitly labelled as such – especially in very fragile and conflict-affected regions.

“No future”

It is impossible to predict what will happen to USAID and its thousands of programmes in what is a fast-changing situation – although many staff are due to be placed on administrative leave at the end of this week amid rumours it will be be folded into the State Department. Any fundamental reforms of the agency, and especially its touted abolition, would legally need to be approved by the Republican-controlled Congress.

But, as far as climate action is concerned, some experts believe the writing is already on the wall.

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Along with the wider funding freeze, on his January 20 inauguration day Trump explicitly ordered federal agencies to explain how they would “revoke or rescind” policies implemented to support his predecessor Joe Biden’s international climate finance plan.

“I see no future [for climate projects],” the humanitarian official said, speaking anonymously due to the sensitivity of the situation, adding that it remains to be seen whether some resilience-building activities could be woven into humanitarian assistance, which is more likely to be continued. “But anything that talks significantly, or even marginally, about climate change doesn’t have a future.”

CGD’s Mathiasen, who offered a similar view, said adaptation finance stands to suffer the most severe consequences from the aid pullback. “It will further create further challenges to an agenda that’s already horrendously underfunded, while needs are real and growing,” she added.

The outlook might be less gloomy for renewable energy projects which offer higher returns and could more easily tap other financing sources. For instance, in sub-Saharan Africa, development banks have committed more than $50 billion to an ambitious “Mission 300” initiative aiming to provide 300 million energy-poor people with electricity by 2030.

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“It is hard to tell yet [what will happen],” said Saliem Fakir, executive director of the Africa Climate Foundation, “but generally large power projects rely on multiple funders – and we also have significant flows of funds from the Gulf States.”

Other major global powers, like China, might be looking to fill the gap as developing nations conclude they can no longer rely on US funding. “The US reputation will suffer as the US will be seen as an unreliable partner and a non-rational actor,” said Mathiasen. “For that reason, this is extraordinarily short-sighted”.

Climate finance goals harder to reach?

Faten Aggad, executive director of the African Future Policies Hub, told Climate Home that an “unprecedented” shift in international aid flows should prompt recipient countries to reevaluate their policies.

“It is a reminder that ODA [overseas development assistance] is not an economic development strategy,” she said. “Countries will need to work on structural solutions to fund their needs, and that includes looking beyond direct financial transfers from development partners.”

But, in the near-term, it will be difficult to quickly find alternative sources of finance for projects dependent on US grants, Aggad warned.

A US retreat from aid funding could also significantly affect the ability of developed countries to fulfill their promise of channelling at least $300 billion a year in climate finance to developing nations by 2035 – an agreement struck just over two months ago at COP29.

In 2022, US contributions accounted for 12% of developed countries’ climate finance through bilateral channels and multilateral climate funds under the previous $100-billion annual goal, according to analysis by US-based think-tank the Natural Resources Defense Council.

In comments made last week, Ani Dasgupta, president and CEO of the World Resources Institute, said “it is still too early to tell what US cuts will mean for reaching the $300-billion and $1.3-trillion [climate finance] goals by 2035 – but they may impact the pace of the scale-up.”

(Reporting by Matteo Civillini; additional reporting by Vivian Chime; editing by Megan Rowling)

The post “No future”: Climate projects face existential threat after Trump’s aid shutdown appeared first on Climate Home News.

“No future”: Climate projects face existential threat after Trump’s aid shutdown

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Proposal for ‘Hyperscale’ data centre in remote Northern Territory demonstrates need for urgent moratorium

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SYDNEY, Wednesday 1 July 2026 — The proposal for the ‘Project Ares’ data centre in remote Northern Territory, which would be powered by off-grid gas and renewables, has prompted renewed calls from Greenpeace for an urgent moratorium, citing serious concerns about emissions and environmental harm.

The application for the project under the EPBC Act reveals the gas-fired generation for the project would be approximately 1,038MW at full build-out, which would more than double the NT’s current gas-fired generating capacity.

A recent report by Greenpeace Australia Pacific and independent expert Ketan Joshi, Energy Vampires: the AI data centres draining Australia, revealed how the frenzied rollout of AI data centres in Australia is set to derail the renewable energy transition, entrench gas and turbocharge climate pollution.

Solaye Snider, Campaigner at Greenpeace Australia Pacific, said: “Proposals like Project Ares, which would have significant off-grid gas powered generation and emissions, should not be moving along while there are still zero binding regulations to limit the impacts of AI data centres on our communities and environment.

“This hyperscale project proposes massive new off-grid gas infrastructure, making a mockery of the Federal Government’s unenforceable ‘expectations’ that data centres will cover their own power use with renewables. Communities will pay the price for the data centre industry’s endless hunger for energy at any cost.

“This proposal also raises serious questions about where this new gas would come from. Could it come from fracking the Beetaloo? Communities deserve to have the full picture before this project is approved.

“The Australian Government is asleep at the wheel when it comes to the rapid roll-out of AI data centres. We need an urgent moratorium on the construction and approval of new data centres, so our government can take appropriate time to legislate the regulations and safeguards we so desperately need.”

-ENDS-

Media contact

Lucy Keller on 0491 135 308 or lucy.keller@greenpeace.org

Proposal for ‘Hyperscale’ data centre in remote Northern Territory demonstrates need for urgent moratorium

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Can giant batteries unlock Africa’s green industrial future?

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When Tropical Storm Ana made landfall in Malawi in 2022, it hit the landlocked country’s electricity system hard, destroying a third of its hydropower capacity and causing nationwide system shutdowns.

Even before the storm, Malawi’s power supply – generated mostly from renewables including solar and hydro – had been unreliable for many years, suffering from persistent outages.

The Malawian government is now hoping to improve the stability of its grid power with the construction of a battery energy storage system (BESS) in its capital that will charge up with surplus electricity generated when the sun is shining and hydropower dams are running, and release it when needed.

More than 80% of Malawi’s electricity comes from renewables and the country has been expanding capacity by adding more solar power while decommissioning 78 megawatts (MW) of diesel generation. But climatic impacts such as cyclones disrupt the grid and threaten to reverse energy transition gains.

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To ensure a more stable supply, Malawi is building the 20 MW/30 megawatt hour (MWh) battery storage system in Lilongwe with support from the Global Energy Alliance (GEA), under Mission 300 – an initiative led by development banks and their partners to connect 300 million Africans to electricity by 2030.

The project in Malawi aims to stabilise the country’s grid, smooth its intermittent power supply, and reduce its reliance on diesel generators, as well as averting about 10,000 tonnes of carbon emissions per year.

Battery energy storage systems act like giant power banks, absorbing clean electricity during periods of lower demand and releasing it for use when demand is high or generation drops. A typical BESS includes battery packs, inverters that allow electricity to flow between the batteries and the grid, transformers, and cooling and safety systems.

Damola Omole, director of the ‘Grids of the Future, Africa’ programme at the GEA, a philanthropic organisation, said BESS offers the “flexibility needed to smoothly integrate high levels of variable renewables” into the power grid. In doing so, it can reduce reliance on expensive diesel generation and protect consumers and industries from rising energy costs, he added.

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As calls to develop local green industries grow louder in Africa, Omole said there is a need to prioritise upgrading national grids with BESS so they can “transmit reliable, cost-reflective power directly to commercial clusters”.

While financiers previously doubted that intermittent solar and wind could meet the needs of industrial production, utility-scale BESS has demonstrated that renewables can deliver “predictable, steady output just like traditional fossil-fuel baseload power”, he added.

An electrical power engineer performs preventative maintenance using a digital voltmeter to monitor battery charge efficiency. (Photo: Nitat Termmee/ Getty Images)

In recent years, African leaders, including William Ruto of Kenya, Felix Tshisekedi of the Democratic Republic of Congo (DRC) and Emmerson Mnangagwa of Zimbabwe, have called for the continent to use the energy transition to drive green industrialisation and create value from its resources at home.

At a mining investment conference in Nairobi in April, Ruto said Africa had stayed at the bottom of the value chain for too long but would now collaborate to process its minerals within the continent. “We will refine them here and we will manufacture them here,” he told African ministers and business executives.

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However, deploying energy at scale to advance this industrial ambition has long been a problem, while about 600 million Africans still lack access to electricity. BESS could therefore become a critical technology in the continent’s development drive, experts say.

Michael Iwu, West Africa business development manager at Empower New Energy, which finances and co-develops renewable energy, said BESS is challenging the narrative that solar and wind power alone cannot provide enough reliable electricity to run factories and other energy-intensive industries. Modern battery systems can now support business operations for several hours, helping maintain production during grid outages, he added.

For GEA’s Omole, the key question has shifted to how quickly countries can build the battery storage, grid infrastructure and market frameworks needed to unlock the potential of renewables.

BESS to help renewables displace fossil fuels

While BESS is still in its initial stages of deployment in Africa, interest is growing as countries look for ways to make renewable energy more reliable.

South Africa is leading with the largest and first of its kind utility-scale BESS on the continent. With the capacity to discharge up to five uninterrupted hours of power, the system is keeping homes and businesses running in Worcester, a southwestern town of more than 100,000 people.

Egypt is also investing heavily in battery storage. In 2025, the country launched its first utility-scale BESS, a 300-MWh facility integrated with a 500 MW solar plant in the southern city of Aswan. It has also committed more than $1 billion to strengthen its electricity grid and update regulation to support battery storage projects.

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Falling battery prices are helping drive the rapid deployment of energy storage. According to BloombergNEF, battery packs for stationary storage (used in BESS) cost an average of $70 per kilowatt-hour in 2025, down 45% from 2024.

Soon the role of BESS in supporting the grid integration of wind and solar could reduce reliance on fossil fuels and help the world meet ambitious climate goals, according to a GEA report released in April.

Stephen Nicholls, director of South-Africa based energy think-tank African Energy Futures, said the rapid pace of technological development and the falling costs of BESS are attracting growing attention.

He said improvements in storage duration could further strengthen the role of renewables in industrial power systems. While most commercial and utility-scale battery systems currently provide around four to eight hours of storage, Nicholls said researchers are developing units capable of storing electricity for extended periods.

“The cheaper the storage and the longer the storage, the more [BESS] will replace fossil fuels like gas,” he added.

Workers are busy on a product at a Polarium energy-storage facility, where they make energy storage and optimization solutions, built on lithium-ion battery technology for businesses within telecom, commercial and industrial facilities across the world, in Cape Town, South Africa, April 5, 2023. (Photo: REUTERS/Esa Alexander)

Workers are busy on a product at a Polarium energy-storage facility, where they make energy storage and optimization solutions, built on lithium-ion battery technology for businesses within telecom, commercial and industrial facilities across the world, in Cape Town, South Africa, April 5, 2023. (Photo: REUTERS/Esa Alexander)

Limited awareness and data

However, significant obstacles to BESS deployment still stand in the way of its massive potential. Iwu of Empower New Energy said limited awareness of utility-scale BESS, as well as concerns about financing and a lack of long-term performance data continue to slow investment across Africa. 

Governments and developers need to build more pilot projects and demonstration sites to generate evidence of the technology’s value and benefits and boost confidence among investors and policymakers, he added. To scale BESS, we need to “keep amassing this [evidence] data and keep talking about it and exploring it,” Iwu said.

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To help address those barriers, Omole said a BESS Consortium under the Global Energy Alliance is working with governments, development banks and other technical partners to de-risk the sector for private financiers by generating evidence from early projects, mobilising public finance to attract private capital, and introducing policies that make battery storage commercially viable.

“This coordinated action helps African nations bypass legacy infrastructure constraints, integrate massive volumes of clean energy, and secure the reliable power required for large-scale industrialisation,” Omole explained.

The post Can giant batteries unlock Africa’s green industrial future? appeared first on Climate Home News.

Can giant batteries unlock Africa’s green industrial future?

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With extreme heat now a public health crisis, local data can save lives

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Eric Mackres is senior manager of urban analytics for the WRI Ross Center for Sustainable Cities and attended London Climate Action Week during the June 2026 heatwave. Usama Bilal is an associate professor of epidemiology and co-director of the Urban Health Collaborative at Drexel University.

As thousands gathered in London for one of the year’s largest climate gatherings last week, Western Europe faced its most severe heatwave ever recorded. The irony was not lost.

Across Europe, over a dozen countries issued urgent heat warnings and Spain registered significant deaths. In London, where air conditioning is rare in buildings and on trains and buses, temperatures soared past 36 degrees Celsius (97F) and schools closed early. The mayor announced the city’s first heat action plan – an important step.

Extreme heat is now a public health crisis for many of the world’s cities, as the urban heat island effect intensifies dangerous temperatures – and it’s growing worse. Around 500,000 people die from extreme heat every year. As global temperatures rise, and with a severe El Niño getting underway, even more people will die and be hospitalised unless cities act soon.

But most cities are still taking a far too one-sized-fits-all approach to tackling heat, looking only at temperatures and not its local effects on people and their health.

People experience heat differently

How extreme heat affects people’s health can vary widely across a country and city, depending on their environment and demographics. Cities can save far more lives and prevent more hospitalisations by taking a tailored approach, using data to understand who’s most vulnerable and directing solutions toward them.

The good news: better data now exists that enable cities to pinpoint who’s most at risk. And that data can inform customised adaptation strategies to save lives. Indeed, the future of cities will hinge on their ability to deliver solutions to extreme heat tailored to at-risk people and neighborhoods.

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First, cities should start by measuring heat’s risks to people’s health locally. Our work in Brazil and across Latin America shows big differences in what temperatures are dangerous and how quickly risks escalate at higher temperatures. These variations exist between cities, between demographic groups and between neighbourhoods.

But it’s not as simple as finding the hottest places. In temperate Porto Alegre, in southern Brazil, a person’s risk of death increases by 25% at temperatures of 27 degrees Celsius (81F). In tropical Teresina, in northern Brazil, which is hot year-round, the same temperature does not elevate the risk of death. At 32 degrees Celsius (90F), a person’s risk of death increases by a milder 10%.

These differences also exist within cities where the climate is the same. Elderly people, the very young, lower-income communities and those without air-conditioning and shaded green spaces are all more likely to get sick, be hospitalised, or die from heat. Areas with more trees and green spaces usually have lower temperatures, and therefore lower impacts of heat.

Targeted heat alerts

Second, cities can use this data to develop early warning systems and outreach campaigns that give people more targeted heat alerts. Research in the UK found that the elderly, despite being among the most at-risk, often were unable to heed warnings during the 2022 heatwave. Well-designed heat warning systems and city responses strengthen people’s trust in health services. They can change people’s behaviours and better prepare municipal services, helping reduce illness, hospital visits and deaths.

Rio de Janeiro adopted a heat alert system in 2024 with five alert levels based on past heatwaves’ impacts on health and forecasts of when temperature and humidity will hit those dangerous levels again. The alert levels activate services like cooling centres, extra public drinking water, and changes to outdoor events. When a heatwave struck during Carnival in 2025, the city was able to deploy resources to protect and warn people while still allowing events to go on.

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Finally, cities should use local heat data to target cooling solutions to where they can help people the most. Solutions like tree cover, shade structures and cool roofs lower temperatures and can provide targeted relief for the most vulnerable people, like outdoor workers and those who travel by foot, bike or public transit.

In Florianópolis, Brazil, we helped the local government use heat impact modeling to design a green corridor and urban forestry project that will reduce pedestrians’ heat stress up to 7 degrees C. In Hermosillo, Mexico, our researchers worked with the city and found that certain neighbourhoods could feel up to 14 degrees C hotter than the shaded city center. A park is now under construction that will bring better shade and heat relief to one of the city’s most at-risk areas.

A modular street shade structure on display during an event at New York Climate Action Week on Governors Island, NYC in September 2025. (Photo: Megan Rowling)

A modular street shade structure on display during an event at New York Climate Action Week on Governors Island, NYC in September 2025. (Photo: Megan Rowling)

Connecting health and climate planning

Momentum to address extreme heat in cities is growing, from both national and local governments. At last year’s UN climate summit in Brazil, the Belém Health Action Plan saw 30 national health ministries commit to build climate-resilient health systems based on local data and evidence-based policies.

And over 160 local governments joined the Beat the Heat initiative, committing to develop urban heat action plans and deliver passive cooling projects to reduce health risks.

But there’s still a disconnect between health, urban and climate officials. Only 23% of World Meteorological Organization member countries integrate weather information into health surveillance systems. Heat-health impact models, though increasingly easy to scale, are not yet built for every city. Some cities still need to collect local data for specific demographics and neighbourhoods – and many need support.

National and local governments will need to partner on this tailored approach. It will require integrating local heat and health data into public health systems, city planning, infrastructure, and disaster preparedness.

We have the data to know who will be most impacted by extreme heat when – and the solutions to keep people alive and out of the hospital. It’s time for governments to use them.

The post With extreme heat now a public health crisis, local data can save lives appeared first on Climate Home News.

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