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Federal prosecutors in Brazil’s Pará state have filed a lawsuit calling for the immediate suspension and cancellation of a multi-million-dollar contract between the state and a coalition of foreign governments and companies for the sale of carbon credits from the Amazon forest.

The prosecutors argued, among other things, that the deal – valued at up to $180 million – is invalid because Pará lacks a legally approved system to create and sell CO2 emissions reductions from lowering deforestation.

They requested that Pará be ordered to pay R$200 million ($35.5 million) in moral damages to society “due to the premature commercialisation of environmental assets originating from the territories of Indigenous Peoples and traditional communities without required free, prior and informed consultation.”

The public interest lawsuit, filed in early June, seeks to stop the federal government from authorizing Pará to work directly with international certifiers until the state’s carbon credit system is made compliant with Brazilian law. Named in the suit are the federal government, Pará state and CAAPP, the state’s public-private carbon asset company.

The September 2024 contract between Pará and the LEAF Coalition – a partnership involving US retail giants Amazon and Walmart, and the US, UK and Norwegian governments, among others – promises payment for emissions reductions under a state-administered forest carbon market system, called REDD+, which Pará says is still “in construction”.

Traditional communities, for their part, have said the timeline for consulting them on that new REDD+ system is too short, given its complexity, and are pushing for a larger share of proceeds from the scheme. On May 28, Pará’s environmental agency SEMAS launched consultations with forest communities under a protocol put together by the state.    

‘Advance sale’ of credits questioned

LEAF’s intermediary, the nonprofit group Emergent, told Climate Home by email that it is aware of the lawsuit, adding that it agrees with the Government of Pará that the carbon credit deal “is fully aligned with Brazil’s new carbon market law”.

“It stands to deliver critical climate finance to the State of Pará and leads the way for other states in Brazil,” said Eron Bloomgarden, CEO of Emergent. “Proceeds from the agreement will be shared with Indigenous Peoples and Local Communities on the front line of the fight against deforestation, supporting communities, providing livelihoods and protecting forests and nature.”

Prosecutors, however, argue that the contract constitutes an illegal “advance sale” of carbon credits for emission reductions that have not yet been verified, while SEMAS’ rollout of REDD+ lacks transparency.

Global forest loss hits “frightening” record high with climate-fuelled fires

In September, Pará’s communications agency celebrated the “sale” of carbon credits from the LEAF deal. The contract states that Emergent “intends to resell” credits to corporations and governments.

Advance sales and resales of credits are prohibited under Brazil’s 2024 federal carbon market law, which established the Brazilian Greenhouse Gas Emissions Trading System.

SEMAS maintains that the contract “was a pre-agreement”, telling Climate Home it will only be executed once carbon credits are generated, beginning in 2026. “Therefore, it does not fall under the prohibitions, as it constitutes a legally valid arrangement and does not infringe on rights, since no funds have yet been disbursed,” the agency added in emailed comments.

Ronaldo Amanayé of the Amanayé Indigenous people, treasurer of the Indigenous Peoples Federation of Pará (FEPIPA), took a different view. “They say it’s a ‘symbolic agreement’. But it’s a pre-sale,” he told Climate Home.

Experts said that without a finalised REDD+ system – and in the absence of a state law regulating carbon credits from reduced deforestation – the contract relies prematurely on emissions reductions from traditional territories.

“Pará committed to selling something that wasn’t theirs to sell,” said Carlos Ramos, a researcher with the Family Farming Amazonian Institute (INEAF).

Aurélio Borges, treasurer of Malungu (Coordination of Quilombola Associations of Pará), said, “it’s our carbon stock”. “We keep the forest standing. We need to be in control of the process.” Instead, he added, “the state goes and does something and shows us the document later.”

Unfinished REDD+ system, limited consultation

Critics argue that the LEAF contract itself has already produced negative social impacts – including loss of forest peoples’ bargaining power to negotiate carbon credit prices, accelerated timelines and pressure to comply, and divisions between leaders and communities – and say consultation should have been carried out earlier.

In 2023, prosecutors urged Pará to implement environmental and social safeguards via a REDD+ system before entering into any carbon contracts. But that recommendation was not followed.

The LEAF contract, for example, sets a $15/tonne carbon price without input from traditional communities, Ramos noted.

Draft allocations for REDD+ projects, such as LEAF, show that Pará’s government would retain 15% of proceeds, more than the 14% proposed for Afro-descendant quilombola communities, whose lands are home to the some of the forests storing the carbon. “We think (the government’s share) is high,” Borges said in an interview.

Amanayé also said the 24% earmarked for Indigenous communities should be larger.

There is particular concern among environmentalists about a planned 7% allocation of Pará’s REDD+ funds to agribusiness, which is known to be Brazil’s main driver of deforestation. Prosecutors have called for removal of this REDD+ provision.

Borges proposed a registry of illegal deforesters to ensure that they do not benefit, adding that he fears draft provisions for “restorative agriculture” could channel more funds to agribusiness.

Though Pará’s deforestation dipped in 2023-2024, it remains Brazil’s top-deforesting state, a title it has held for nine years.

Illegal deforestation by large landowners for agribusiness in Baião municipality, Pará, in December 2022. Traditional communities want a registry so that agribusiness-linked illegal deforesters like these won’t benefit under Pará’s still-unfinished REDD+ system. (Photo: Tiffany Higgins)

Illegal deforestation by large landowners for agribusiness in Baião municipality, Pará, in December 2022. Traditional communities want a registry so that agribusiness-linked illegal deforesters like these won’t benefit under Pará’s still-unfinished REDD+ system. (Photo: Tiffany Higgins)

Under REDD+, “who will keep the forest standing, as contracts promise?” queried a representative of the State Public Prosecutor’s Office, who asked to remain anonymous. The office co-authored an April recommendation to cancel the contract.

Pará often doesn’t punish illegal deforestation, Marcio Astrini, executive secretary of the Brazil-based Climate Observatory, told Climate Home.

He noted that in May, Pará Governor Helder Barbalho tried to reverse a federal anti-deforestation operation suspending the activities of some of Pará’s rural properties that had committed illegal deforestation. Barbalho said in a social media video that this would be done “in line with environmental legislation, so that production goes hand in hand with preservation”.

Yet, amid Pará’s weak track record on deforestation, Ramos highlighted fears that the Pará carbon credit deal could become more of a strategy to generate financial assets than conserve forests.

Under pressure to join REDD+

Another contentious issue is the process by which forest communities were selected to participate in the REDD+ planning process. Three voluntary organisations – Malungu, FEPIPA and CNS – were appointed on behalf of hundreds of communities, many of whom “feel these organisations don’t represent them”, according to the State Public Prosecutor’s Office representative.

These same associations are slated to manage REDD+ funds coming from the state, making it unclear how frontline communities who preserve forests will obtain access to the money.

Federal prosecutors charged in their lawsuit that community participation had been limited to financial discussions, rather than shaping the system. Meanwhile, the state, “by all indications, intends to approve its REDD+ system before COP30, which has created considerable pressure on Indigenous Peoples and traditional communities in Pará to hastily approve the system,” they wrote.

The COP30 UN climate summit will take place in the Brazilian Amazon city of Belém in November.

This time limit, said traditional leaders interviewed by Climate Home, has led to what they described as “extreme harassment” to join the fledgling REDD+ system – an accusation rejected by SEMAS.

Community consultation protocols side-stepped

The leaders, however, told Climate Home they had experienced coercive tactics. At an April 28 meeting, they said SEMAS had told quilombola leaders that rejecting the state’s consultation protocol could result in exclusion from public services. Leaders cited threats to housing programmes and land titles, among others.

Prosecutors confirmed this in their lawsuit, noting it “has created pressure within the territories regarding acceptance of the proposal”. SEMAS denied issuing threats and said participation in the REDD+ system is voluntary.

SEMAS confirmed, nonetheless, that it had set a consultation window of five days for 17 quilombola territories to decide jointly whether to be part of the REDD+ system.

“That’s not going to happen,” leader Maria José Brito of São José de Icatu Quilombo told SEMAS at the April meeting. “We want to be consulted, but according to our community consultation protocol.”

“It’s shameful”: Amazon Indigenous people call for oil drilling ban at COP30

Community protocols often require multi-step processes and internal assemblies to reach decisions in keeping with traditional practices. Consultation on issues that will impact Indigenous and traditional people must respect traditional decision-making processes, according to ILO Convention 169.

Leader Rute Santos, also of the Icatu Quilombo, described the Pará state protocol as “throwing our protocol in the trash. We don’t accept that.”

Pará’s REDD+ approach “has divided leaders and communities,” noted Santos, threatening the social fabric as it tries to force rushed decisions.

Others said they had been excluded from key meetings. “They keep you in the dark,” said leader Manoel Liduino of Terra da Liberdade Quilombo.

The state’s strategy amounts to “take it or leave it”, both Santos and Liduino said, making it hard for their peoples to participate in shaping Pará’s REDD+ development. SEMAS responded that the process had so far been “fully participatory”.

Flávia dos Santos, legal consultant for Malungu spoke at a National Meeting on Climate Change Impacts on Traditional Peoples in May, where the Public Prosecutor’s Office released an MPF handbook on defense of traditional communities in the carbon market context. (Photo courtesy of MPF)

Flávia dos Santos, legal consultant for Malungu spoke at a National Meeting on Climate Change Impacts on Traditional Peoples in May, where the Public Prosecutor’s Office released an MPF handbook on defense of traditional communities in the carbon market context. (Photo courtesy of MPF)

Carbon sovereignty concerns      

There are also questions of legal coherence. Brazil’s 2024 law defines carbon credits as a “civil fruit” that are attached to the underlying piece of land, suggesting that they cannot be resold or transferred.

The LEAF contract, by allowing resale, “violates Brazil’s sovereignty” to define its carbon sinks, said Talanoa Institute’s Amazonian public policy analyst Wendell Andrade. Pará, meanwhile, may violate federal jurisdiction by promising credits from Indigenous and conservation area lands that belong to the Brazilian state, say prosecutors.

The Pará state project is among the world’s first “jurisdictional” carbon credit schemes, set up to cover a whole state or country.

SEMAS responded that “the jurisdictional system is not a project that will enter territories causing harm or adverse effects to traditional communities.”

The Amazon rainforest emerges as the new global oil frontier 

Chief Yuna Miriam Tembé of the Tembé people believes that REDD+ is effectively a way of enabling continued carbon emissions by business. “Why are the federal and state governments selling our forests so that mega-industries can keep polluting?” she asked. “Polluting the environment (with carbon) is a crime, causing the death of countless lives, people, the land, rivers, fish, animals, the forest, birds and all living beings.”

She questioned what she sees as efforts to limit forest peoples’ ancestral uses of land, like clearing small plots for cassava cultivation – a point SEMAS did not clarify when asked. “Even though the territory is ours, the state uses these carbon credit contracts to try to restrict our freedom of movement within these spaces. That is unacceptable,” Tembé said.

“We cannot accept privatisation being imposed inside our own home (territory),” she added – a sentiment echoed by Santos.

Local confusion about REDD+

As the Pará state consultations on its REDD+ programme got underway, many community members told Climate Home they do not understand what carbon credits are, despite being asked to accept the short five-day consultation period.

“Even as a movement leader,” said Liduino, “I don’t understand what REDD+ is.”

As of May, the state’s REDD+ “transparency” web page hosted only technical documents. SEMAS told Climate Home it would explain REDD+ to communities during the first two days of consultation.

The Talanoa Institute’s Andrade said carbon credits and forest carbon are “still something nebulous that a large portion of Pará’s population doesn’t understand”.

Putting information on the SEMAS website “doesn’t make the process transparent,” he added. “Transparency should be a coordinated set of communication strategies using accessible language levels that match the understanding of different segments of society,“ he said.

The post Pará’s Amazon forest carbon deal in doubt as prosecutors move to block it appeared first on Climate Home News.

Pará’s Amazon forest carbon deal in doubt as prosecutors move to block it

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Guest post: How CMIP7 will shape the next wave of climate science

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Hundreds of scientists in dozens of institutions are embarking on the next phase of the world’s largest coordinated climate-modelling effort.

Climate-modelling groups use supercomputers to run climate models that simulate the physics, chemistry and biology of the Earth’s atmosphere, land and oceans.

These models play a crucial role in helping scientists understand how the climate is responding as greenhouse gases build up in the atmosphere.

For four decades, the Coupled Model Intercomparison Project (CMIP) has guided the work of the climate-modelling community by providing a framework that allows for millions of results to be collected together and compared.

The resulting projections are used extensively in climate science and policy and underpin the landmark reports of the Intergovernmental Panel on Climate Change (IPCC).

Now, the seventh phase of CMIP – CMIP7 – is underway, with more than 30 climate-modelling centres expected to contribute more than five million gigabytes of data – so much that downloading it using a fast internet connection would take two and a half years.

Here, we look at what is new for CMIP7, including its model experiments, updated emissions scenarios and “assessment fast track” process.

What is CMIP?

Around the world, climate models are developed by different institutions and groups, known as modelling centres.

Each model is built differently and, therefore, produces slightly different results.

To better understand these differences, CMIP coordinates a common set of climate-model experiments.

These are simulations that use the same inputs and conditions, allowing scientists to compare the results and see where models agree or differ.

The figure below shows the countries that have either produced or published CMIP simulations.

CMIP across the globe
Countries that have contributed modelling or data infrastructure for CMIP. Credit: CMIP

During this time, scientists use new and improved models to run experiments from previous CMIP phases for consistency, as well as new experiments to investigate fresh scientific questions.

These simulations produce a trove of data, in the form of variables – such as temperature, rainfall, winds, sea ice extent and ocean currents. This information helps scientists study past, present and future climate change.

As scientific understanding and technical capabilities improve, models are refined. As a result, each CMIP phase incorporates higher spatial resolutions, larger ensembles, improved representations of key processes and more efficient model designs.

CMIP7 objectives

Each CMIP phase has an “experimental design” that outlines which climate-model experiments should be run and their technical specifications, including the time period the models should simulate.

The CMIP7 experimental design has several components.

As in CMIP6, for a modelling centre to contribute, they are asked to produce a suite of experiments that maintain continuity across past and future CMIP phases.

This suite of experiments is known as the “diagnostic, evaluation and characterisation of klima” (DECK) and is used to understand how their model “behaves” under simple, standard conditions. These experiments are designed and requested directly by CMIP’s scientific governing panel.

Alongside the DECK, CMIP also incorporates experiments developed by model intercomparison projects (MIPs) run by different research communities. For example, experiments exploring what the climate could look like under different levels of emissions or those that explore how sea ice might have changed between the last two ice-ages.

Currently, CMIP is working with 40 MIPs. These groups investigate specific scientific questions at their own pace, rather than on timelines prescribed by CMIP.

Running a large number of simulations can take modelling centres a long time. To speed up the process, CMIP7 has launched the “assessment fast track”.

This is a small subset of CMIP7 experiments, drawn from past and present community MIPs, identified through community consultation as being critical for scientific and policy assessments.

Data from the assessment fast track will be used in the reports that will together form the seventh assessment (AR7) of the IPCC.

It will also be used as an input by other groups that create climate information, including organisations involved in regional downscaling and modelling climate impacts and ice-sheet changes.

The figure below shows the different components of CMIP7. It shows how a subset of CMIP7 experiments will be delivered on an accelerated timeline, while the majority of experiments will be led by MIPs.

CMIP7 infographic
The different components of CMIP7. Credit: CMIP

CMIP7 experiments

There are three categories of experiments set to take place in CMIP7:

  • Historical experiments, which are designed to improve scientific understanding of past climates. Model runs exploring the recent historical period also allow scientists to evaluate the performance of models by checking how well they replicate real-world observations.
  • Prediction and projection experiments, which allow scientists to analyse what different climates could look like under varying levels of greenhouse gas emissions, as well as near-term (10-year) prediction experiments.
  • Process understanding experiments, which are designed to better understand specific processes and isolate cause-and-effect relationships. For example, a set of experiments might change the emissions of one greenhouse gas at a time to see how much each pollutant contributes to warming or cooling the climate.

Modelling centres typically produce and publish their data for the historical and projection experiments first.

CMIP expects the first datasets to be available by this summer, with broader publication recommended by the end of the year, in time to be assessed by IPCC AR7 authors.

Drafting of the reports of AR7 is currently underway. However, countries are yet to agree on the timeline for when they will be published. This presents a challenge for the climate-modelling community, given the difficulties of working with a moving deadline.

(For more on the ongoing standoff between countries around the timing of publication of the reports, read Carbon Brief’s explainer.)

New emissions scenarios

Scientists use emissions scenarios to simulate the future climate according to how global energy systems and land use might change over the next century.

Crucially, these scenarios – also known as “pathways” – are not forecasts or predictions of the future.

The group tasked with designing the scenarios for CMIP phases, as well as producing the “input files” for climate models, is the “scenario model intercomparison project”, or ScenarioMIP.

In a new paper, the group has set out the new set of scenarios for CMIP7:

  • High (H): Emissions grow to as high as deemed plausibly possible, consistent with a rollback of current climate policies. This scenario will result in strong warming.
  • High-to-low (HL): Emissions rise as in the high scenario at first, but are cut sharply in the second half of the century to reach net-zero by 2100.
  • Medium (M): Emissions consistent with current policies, frozen as of 2025, leading to a moderate level of warming.
  • Medium-to-low (ML): Emissions are slowly reduced, eventually reaching net-zero emissions by the end of the century.
  • Low (L): Emissions consistent with likely keeping warming below 2C and not returning to 1.5C before the end of the century.
  • Very low (VL): Emissions are cut to keep temperatures “as low as plausible”, according to the paper. This scenario limits warming to close to 1.5C by the end of the century, with limited overshoot beforehand.
  • Low-to-negative (LN): Emissions fall slightly slower than in the VL scenario, with temperatures just rising above 1.5C. Emissions then rapidly drop to negative to bring warming back down.

The figures below show the emissions (left) and the estimated global temperature changes (right) under the seven new scenarios for CMIP7, from the low-to-negative emissions scenario (turquoise) to a high-emissions scenario (brown).

The greenhouse gas emissions for each of the CMIP7 climate scenarios (left) and the associated estimated average temperature change from 1850-1900 (right) using the FaIR emulator. Source: Adapted from Van Vuuren et al. (2026)
The greenhouse gas emissions for each of the CMIP7 climate scenarios (left) and the associated estimated average temperature change from 1850-1900 (right) using the FaIR emulator. Source: Adapted from Van Vuuren et al. (2026)

As a set, the ScenarioMIP scenarios “cover plausible outcomes ranging from a high level of climate change (in the case of policy failure) to low levels of climate change resulting from stringent policies”, the paper says.

Compared to the scenarios in CMIP6, the range in future emissions they cover is now narrower, the authors say:

“On the high-end of the range, the CMIP6 high emission levels (quantified by SSP5-8.5) have become implausible, based on trends in the costs of renewables, the emergence of climate policy and recent emission trends…At the low end, many CMIP6 emission trajectories have become inconsistent with observed trends during the 2020-30 period.”

Put simply, progress on climate policies and cheaper renewable technologies means that scenarios of very high emissions have now been ruled out.

However, this progress has not been sufficient to keep society on track for the Paris Agreement’s 1.5C goal. The paper notes that, “at this point of time, some overshoot of the 1.5C seems unavoidable”.

The change to the high end of the scenarios has sparked misleading commentary in the media and on social media – even from US president Donald Trump. A Carbon Brief factcheck unpacks the debate.

Also notable in the new scenarios is the “low-to-negative” pathway, which has the explicit feature of emissions becoming “net-negative”. In other words, through carbon dioxide removal (CDR) techniques, society reaches the point at which more carbon is being taken out of the atmosphere than is being added through greenhouse gas emissions.

Reaching net-negative emissions is fundamental to “overshoot scenarios”, where global warming passes a target and then is brought back down by large-scale CDR.

Overshoot scenarios allow scientists and policymakers to investigate the impacts of a delay to emissions reductions and better understand how the world might respond to passing a warming target. This includes the question of whether some impacts of climate change, such as ice sheet melt, are reversible.

CMIP has encouraged modelling centres to run simulations using the “high” and “very low” scenarios first to ensure downstream users of the data – including groups working on regional climate projections (CORDEX), climate impacts modelling (ISIMIP) and ice-sheet modelling (ISMIP) – have enough time to produce their data for IPCC reports.

These two scenarios were selected as they sit at opposite ends of the spectrum of climate outcomes. The high scenario will demonstrate how models behave under high emissions, while the very low scenario will demonstrate how models behave when emissions are rapidly reduced.

CMIP has recommended that modelling centres then run the “medium” and “high-to-low” scenarios. The remaining scenarios should then follow and no official recommendation has been made yet on their production order.

Other new features

In addition to the assessment fast track and new scenarios, CMIP7 has a number of other new developments.

Updated data for simulations

Climate models use input datasets to define the set of external drivers – or “forcings” – that have caused the global warming observed so far. These drivers include greenhouse gases, changes to incoming solar radiation and volcanic eruptions.

CMIP recommends modelling groups use the same input datasets, as this makes it easier to compare model results.

In CMIP7, the historical forcing datasets available for modelling groups to use have been improved to better represent real-world changes and extended closer to the present day. The historical simulations will be able to simulate the past climate from 1850 through to the end of 2021, whereas CMIP6 only simulated the past climate through to 2014.

CMIP is also planning to extend these historical datasets through to 2025 and maybe further throughout the course of CMIP7.

Emissions-driven simulations

CMIP7 introduces a new focus on CO2 emissions-driven simulations, providing a more realistic representation of how the climate responds to changes in emissions.

In older generations of climate models, atmospheric levels of CO2 and other greenhouse gas concentrations have been needed as an input to the model. These levels would be produced by running scenarios of CO2 emissions through separate carbon cycle models. The resulting climate-model runs were known as “concentration-driven simulations”.

However, many of the latest generation of models are now able to run in “emissions-driven mode”. This means that they receive CO2 emissions as an input and the model itself simulates the carbon cycle and the resulting levels of CO2 in the atmosphere.

This development is important, as climate policies are typically defined in terms of emissions, rather than overall atmospheric concentrations.

This new development in modelling will enable a more realistic representation of the carbon cycle and a better understanding of how it might change under different levels of warming.

Enhanced model documentation and evaluation

All CMIP7 models will be required to supply standardised model documentation that ensures consistency across model descriptions and makes it easier for end users to understand the data.

Additionally, CMIP scientists have developed a new open-access tool that dramatically speeds up the evaluation of climate models.

This “rapid evaluation framework” allows researchers to compare model outputs with real-world observations, providing immediate insight into model performance.

The post Guest post: How CMIP7 will shape the next wave of climate science appeared first on Carbon Brief.

Guest post: How CMIP7 will shape the next wave of climate science

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Could Georgia Voters Turn Their Utilities Commission Blue?

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Democrats are within reach of a majority on Georgia’s Public Service Commission, a little-known body that oversees Georgia Power and utility rates.

Georgia Public Service Commission elections historically received limited public attention and turnout. That changed last year, when voters, frustrated by rising electric bills, ousted two GOP members of the utility regulator, previously made up entirely of Republicans. This year, Democrats have a chance to flip control of the five-member commission.

Could Georgia Voters Turn Their Utilities Commission Blue?

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Chinese EV brands woo Yemen’s wealthy elite as war prompts solar boom

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Like many Yemeni farmers, Salem Abdallah first bought solar panels to power a well pump to irrigate his fruit and vegetable crops. Now, he has a new use for the surplus electricity they generate – a Chinese-made electric pickup truck.

“The roads between villages are rough and my farms aren’t all in one place, so the power and height give me a real advantage,” the 60-year-old told Climate Home News as he charged his plug-in hybrid Geely Riddara in Yemen’s capital of Sanaa, where nearly a dozen charging stations have sprung up in the last two years.

Prices for Abdallah’s Riddara model run from $25,000 to $40,000 – out of reach for all but a few in the impoverished country, where more than a decade of civil war has shattered the economy and made fuel supplies unaffordable for many.

The conflict has also taken a heavy toll on the national grid, which only 12% of Yemenis rely on for electricity, according to the World Bank.

Many homes and businesses have instead installed off-grid solar systems to confront frequent blackouts and patchy coverage in rural areas, and this improbable solar boom has caught the attention of Chinese electric vehicle (EV) brands.

Solar boom stirs Chinese interest

China’s BYD, Geely and Jetour have opened dealerships in Yemen in recent years, betting that enthusiastic solar uptake, coupled with high fuel prices and shortages, will lead to rapid growth in the nation’s small and incipient EV market, at least among those able to afford the initial outlay.

At the other end of the scale, electric two-wheelers are also starting to make inroads in Yemen among delivery services and salaried employees.

Mohammed Ali, 25, an accountant at an exchange office in Sanaa, said the $1,050 he spent on a Chinese-made electric motorcycle was “the best decision I ever made”.

I charge my electric motorcycle at work and it saves me transportation expenses and time,” he said.

    But even as the global energy shock caused by the Iran war spurs the shift to electric transport in some lower-income countries, buying an EV still remains an impossible dream for most of Yemen’s 40 million people, said Mustafa Nasr, head of the Yemen-based Centre for Economic Studies and Media.

    “Most Yemenis can barely secure their basic needs,” Nasr said.

    Shrinking incomes, rising prices

    Yemen has been gripped by civil war since 2014, plunging it into one of the world’s worst humanitarian crises.

    Gross domestic product (GDP) per capita is projected to fall to about $384 this year, according to estimates from the International Monetary Fund – less than a quarter of what it was when the war began.

    At the same time, petrol and diesel for transport and to power generators have become increasingly out of reach. A litre of petrol in Sanaa costs the equivalent of $0.94 – close to what many Yemenis earn in a day.

    A billboard advertising electric car and truck models over a large avenue in Sanaa, Yemen
    A billboard advertising electric car and truck models over a large avenue in Sanaa, Yemen (Photo: Hashed Mozqer)

    Charging stations spring up

    But for those able to buy them, EVs are proving a revolutionary solution to Yemen’s road transport woes. Sustained fuel price rises and solar adoption could push a gradual widening of the market, particularly if EV and battery prices continue to fall, Nasr said.

    For large-scale farmers like Abdallah who already own solar installations generating between 60 and 80 kilowatts, built to run irrigation systems, charging an EV at night is a no-brainer.

    EVs started appearing on the streets of Sanaa and the southern port city of Aden in late 2024, when the first charging point was installed by Al-Raebi Company, which holds the concession to build charging infrastructure in Sanaa and several other provinces and also sells electric Farizon trucks and Riddara pickups.

    Al-Raebi’s sales manager, engineer Mundhar al-Farran, said the company has sold hundreds of electric vehicles this year to farmers, traders and institutions. Like Abdallah, many of them say EVs’ simpler construction reduces breakdowns, while the immediate torque of electric motors suits Yemen’s mountainous terrain, he said.

    Large Riddara electric and hybrid vehicles for sale at a showroom in Sanaa, Yemen
    Riddara plug-in hybrid vehicles for sale at the Al Raebi car agency in the Jadr neighbourhood in Sanaa, Yemen (Photo: Hashed Mozqer)

    There are now 11 charging stations in Sanaa, and one each in Aden, Dhamar, Ibb and Hodeidah. On long inter-provincial routes there is one station per corridor, al-Farran said.

    The price per kilowatt at a public charging station is 120 Yemeni rials ($0.22). According to economic expert Ali al-Tuwaiti, this translates to a per-kilometre cost of about 18 rials for an EV – two and a half times less than for a fuel-efficient petrol car.

    “The absence of charging infrastructure was the biggest obstacle at the start,” al-Tuwaiti said. “Al-Raebi’s initiative was the first turning point in this sector.”

    Al-Raebi is also working to bring fuel station operators into the transition, offering to cover half the cost of installing solar-powered charging equipment and financing the rest, al-Farran said.

    Solar power backbone

    Such efforts seek to leverage the country’s investments in solar generation. Over recent years, the country has imported solar systems totalling more than 1,000 megawatts of capacity, representing an estimated investment of about $250 million, al-Tuwaiti said.

    That accounts for almost a quarter of Yemen’s current electricity needs of 4,500 megawatts, he added.

    It has also given an unexpected boost to the climate-vulnerable country’s efforts to further shrink its tiny carbon emissions. Al-Tuwaiti estimates that solar generation now displaces the equivalent of 7,800 barrels of oil and more than 1.2 million litres of diesel per day.

    Recent estimates show Yemen contributes only around 0.03%-0.06% of global emissions, with most energy-related emissions coming from transport and power generation.

    People look at four large Chinese electric trucks in a show room in Sanaa, Yemen
    Chinese electric trucks in the Farizon showroom at the Al Raebi car agency in Sanaa, Yemen (Photo: Hashed Mozqer)

    China’s BYD starts with hybrids

    Yemen’s nascent EV market comes amid faster-than-expected transport electrification in some emerging countries, where Chinese manufacturers are seeking to attract buyers with lower prices in markets seen as having unlocked potential.

    China’s EV giant BYD mostly sales hybrid models at its dealership in Aden for now, but it also offers repayment plans for its popular battery electric Seagull car model, which retails for about $13,000.

    The dealer also sells several other models that are available as plug-in hybrids, which tend to be popular in places with limited charging infrastructure and erratic power supplies.

    One recent buyer, food trader Amin, 50, paid $50,000 for his new BYD model.

    “It’s powerful, has four-wheel drive, and a better launch than modern conventional cars,” he told Climate Home News outside his home, adding that the air conditioning runs efficiently even when stationary – a serious consideration in Aden’s sometimes sweltering heat.

    “It’s wonderful … it has all that I want in a car,” he said.

    This story was published in collaboration with Egab.

    The post Chinese EV brands woo Yemen’s wealthy elite as war prompts solar boom appeared first on Climate Home News.

    Chinese EV brands woo Yemen’s wealthy elite as war prompts solar boom

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