From canola farmers in Canada to car owners in India, biofuels have become the subject of everyday debate across the world.
Liquid biofuels feature heavily in the climate plans of many countries, as governments prioritise domestic energy security amid geopolitical challenges, while looking to meet their climate targets and bolster farm incomes.
Despite a rapid shift towards electrified transportation, biofuels continue to play a leading role in efforts to reduce road-transport emissions, as they work well with many existing car engines.
At the same time, biofuels are expected to play an important role in decarbonising sectors where emissions are particularly challenging to mitigate, such as shipping, trucking and aviation.
Heated debates continue around using food sources as fuel in the face of record hunger levels, given competing demands for land and crops.
Despite these arguments, biofuels are seeing heightened demand bolstered by a strong policy push, particularly in developing countries.
They are expected to feature heavily on the COP30 agenda this year as a key feature of the host Brazil’s “bioeconomy”.
Below, Carbon Brief unpacks what biofuels are, their key benefits and criticisms, plus how they are being used to meet climate targets.
- What are biofuels?
- What are the most common biofuels being used today?
- What are the main arguments for biofuels?
- What are some of the main criticisms of biofuels?
- How are countries using biofuels to meet their climate targets?
- How could climate change impact biofuel production?
What are biofuels?
Bioenergy refers to all energy derived from biomass, a term used to describe non-fossil material from biological sources. Biofuels, in turn, are liquid fuels that are produced from biomass.
These sources are wide-ranging, but commonly include food crops, vegetable oils, animal fats, algae and municipal or agricultural waste, along with synthetic derivatives from these products.
Glossary
Biomass
Non-fossil material of biological origin
Biofuel
Fuels produced directly or indirectly from biomass
Feedstock
Types of biomass used as sources for biofuels, such as crops, grasses, agricultural and forestry residues, wastes and microbial biomass
Bioenergy
All energy derived from biofuels
Bioethanol
A biofuel used as a petrol substitute, produced from the fermentation of biomass from plants like corn, sugarcane and wheat
Biodiesel
A biofuel used as a diesel substitute, derived from vegetable oils or animal fats through a process called transesterification
The different types of biomass are referred to as “feedstocks”. They are converted to fuel through one or more processes, such as fermentation or treating them with high temperatures or hydrogen.
Biofuels are frequently blended with petroleum products in an effort to reduce emissions and reliance on fossil-fuel imports.
Experiments to test whether vegetable oils could run in combustion engines began in the early 1900s. In a 1912 paper, Rudolf Diesel – the inventor of the diesel engine – presciently noted that these oils “make it certain that motorpower can still be produced from the heat of the sun…even when all our natural stores of solid and liquid fuels are exhausted”.
An extract from Rudolf Diesel’s 1912 paper, published in the Proceedings of the Institution of Mechanical Engineers, outlining the importance biofuels could assume in the future. Credit: Proceedings of the Institution of Mechanical Engineers (1912)
Biofuels are divided into four “generations”, based on the technologies and feedstocks used to synthesise them.
| Type of biofuel | Source |
| First-generation | Food crops (eg, sugarcane, corn, wheat, rice) |
| Second-generation | Non-edible crops and materials (eg, straw, grasses, used vegetable oil, forest residues, waste) |
| Third-generation | Aquatic materials (eg, algae) |
| Fourth-generation | Genetically modified algae, bacteria and yeast, as well as electrofuels, synthetic fuels and e-fuels |
First-generation biofuels
The first – and earliest – generation of biofuels comes from edible crops, such as corn, sugarcane, soya bean and oil palm. Large-scale commercial production of these fuels began in the 1970s in Brazil and the US from sugarcane and corn, respectively.
Bioethanol, for instance, is drawn from the fermentation of sugars in corn, sugarcane and rice. Biodiesel is derived from vegetable oils – such as palm, canola or soya bean oil – or animal fats, through a process called transesterification, which makes them less viscous and more suitable as fuels.
Because they are derived directly from food crops, experts and campaigners have expressed concerns over the impacts of first-generation biofuels on forests, food security and the environment, as well as indirect land-use change impacts. (See: What are some of the main criticisms of biofuels?)
Several studies have found that the land-use emissions of first-generation biofuels are severely underestimated, but other experts tell Carbon Brief that this depends on how and where the crops are grown, processed and transported.
According to Dr Angelo Gurgel, principal research scientist at the Massachusetts Institute of Technology (MIT) Center for Sustainability Science and Strategy, the “big image that biofuels are bad” is not always accurate. Gurgel explains:
“Some biofuels can be better than others, varying from place to place and feedstock to feedstock. It depends on where you produce them, how much farmers can increase yields, how effectively a country’s regulations help avoid land-use change and how closely it is connected to international markets.
“Some options may be very, very good in terms of reducing emissions and other options probably will be very bad.”
Second-generation biofuels
Second-generation biofuels are extracted from biomass that is not meant for human consumption.
Feedstocks for these biofuels are incredibly varied. They include agricultural waste, such as straw and corn stalks, grasses, forest residues left over from wood processing, used vegetable oil and solid waste. They can also be made from energy crops grown specifically to serve as biofuels, such as jatropha, switchgrass or pongamia.
Derived from “waste” or grown on “marginal” land, second-generation biofuels were developed in the early 2000s. These fuels aimed to overcome the food security and land-use issues tied to their predecessors, while increasing the amount of fuel drawn out from biomass, compared to first-generation feedstocks.
These feedstocks are either heated to yield oil or “syngas” and then cooled, or treated with enzymes, microorganisms or other chemicals to break down the tough cellulose walls of plants. They can be challenging to process and present significant logistical and land-use challenges.
Third-generation biofuels
Third-generation biofuels are primarily derived from aquatic organic material, particularly algae and seaweed. While the US Department of Energy began its aquatic species programme in 1978 to research the production of biodiesel from algae, algal biofuel research saw a “sudden surge” in the 1990s and “became the darling” of renewable energy innovation in the early 21st century, says Mongabay.
Because algae grows faster than terrestrial plants, is high in lipid (fatty organic) content and does not compete with terrestrial crops for land use, many scientists and industry professionals consider third-generation biofuels an improvement over their predecessors.
However, high energy, water and nutrient needs, high production costs and technical challenges are key obstacles to the large-scale production of algae-based biofuels. Since the early 2010s, many companies, including Shell, Chevron, BP and ExxonMobil, have abandoned or cut funding to their algal biofuel development programmes.
Fourth-generation biofuels
Genetically modified algae, bacteria and yeast engineered for higher yields serve as the feedstock for fourth-generation biofuels. These fuels have been developed more recently – from the early 2010s onwards – and are an area of ongoing research and development.
Some of these organisms are engineered to directly or artificially photosynthesise solar energy and carbon dioxide (CO2) into fuel; these are called solar biofuels.
Others – called electrofuels, synthetic fuels or e-fuels – are produced when CO2 captured from biomass is combined with hydrogen and converted into hydrocarbons through other processes, typically using electricity generated from renewable sources.
Fourth-generation biofuels are technology- and CO2-intensive and expensive to produce. They also run up against public perception and legal limitations on genetically modified organisms, as well as concerns around biosafety and health.
What are the most common biofuels being used today?
Bioethanol is the most commonly used liquid biofuel in the world, followed by biodiesel.
In 2024, global liquid biofuel production increased by 8% year-on-year, with the US (37%) and Brazil (22%) accounting for the largest overall share of production, according to the 2025 Statistical Review of World Energy from the Energy Institute.
Other countries that saw a notable increase in production between 2023-24 were Sweden (62%), Canada (39%), China (30%), India (26%) and Argentina (24%).
Bioethanol is the most commonly used biofuel in the world, with a consumption rate of 1.1m barrels of oil equivalent per day in 2024, according to the report. This is closely followed by biodiesel, at 1m barrels of oil equivalent per day.
In 2024, the US, Brazil and the EU accounted for nearly three-quarters of all biofuels consumed globally. However, while India’s biofuel demand grew by 38%, demand for biofuels in the EU fell by 11% in 2024, according to the review, echoing outlooks that show that middle-income countries are driving biofuel growth.
The chart below shows how biofuel production and consumption have changed since 2000, and how they are projected to change through 2034.
What are the main arguments for biofuels?
From lowered oil imports and emissions through to boosting farm livelihoods, countries that have boosted biofuels programmes cite several benefits in biofuels’ favour.
‘Renewable’ energy and lowered emissions
Biofuels are often described as “renewable” fuels, since crops can be grown over and over again.
In order to achieve this, crops for biofuels must be continuously replanted and harvested to meet energy demand. Growing crops – particularly in the monoculture plantations typically used for growing feedstocks – can require high use of fossil fuels, in the form of machinery and fertiliser. Furthermore, in the case of wood as a feedstock, regrowth can take decades.
While some biofuels offer significant emissions reductions, others, such as palm biodiesel, generate similar or sometimes higher emissions as fossil fuels when burned. However, ancillary emissions for biofuels are much smaller than for oil and gas operations.
One of the main cited benefits of biofuels is that plants capture CO2 from the atmosphere as they grow, potentially serving to mitigate emissions. However, several lifecycle-assessment studies have questioned just how much plants can offset emissions. These studies come up with varying estimates based on feedstock types, geography, production routes and methodology.
This divergence is echoed in the UN Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report (AR6), which points to “contrasting conclusions” even when similar bioenergy systems and conditions are analysed.
Per the report, there is “medium agreement” on the emissions-reduction potential of second-generation biofuels derived from wastes and residues by 2050.
At the same time, the IPCC adds that “technical land availability does not imply that dedicated biomass production for bioenergy…is the most effective use of this land for mitigation”.
It also warns that larger-scale biofuel use “generally translates into higher risk for negative outcomes for greenhouse gas emissions, biodiversity, food security and a range of other sustainability criteria”.
Along with the IPCC, many other groups and experts – including the UK’s Climate Change Commission – have called for a “biomass hierarchy”, pointing to a limited amount of sustainable bioenergy resources available and how best to prioritise their use.
Use in hard-to-abate sectors
In many countries, such as the US and UK, biofuels are part of a standard grade of diesel and petrol (gasoline) available at most fuel pumps.
Biofuels have also been the leading measure for decarbonising road transport in emerging economies, where electric vehicle systems were not as developed as in many western nations.
According to the International Energy Agency (IEA), most new biofuel demand is coming from these countries, including Brazil, India and Indonesia.
Biofuels are also one of the key options being explored to decarbonise the emissions-heavy, but “hard-to-abate”, sectors of aviation and shipping.
The AR6 report notes that the “faster-than-anticipated adoption of electromobility” has “partially shifted the debate” from using biofuels primarily in land transport towards using them in shipping and aviation.
At the same time, experts question how this can be done sustainably, given the limited availability of advanced biofuels and the rising demand for them.
Government reports – such as those released by the EU Commission – recognise that, in some circumstances, so-called sustainable aviation fuels (SAFs) could produce just as many emissions as fossil fuels when burned in order to power planes.
However, SAFs do generally – although not always – have a lower overall “lifecycle” carbon footprint than petroleum-based jet fuel. This is due to the CO2 absorbed when growing plants for biofuels, or emissions that are avoided by diverting waste products to be used as fuels.
Unlike the road sector, where “electrification is mature…aviation and shipping cannot be electrified so easily”, says Cian Delaney, fuels policy officer at the Brussels-based advocacy group Transport & Environment (T&E).
According to a 2025 T&E briefing, the 2030 demand for biofuels from global shipping alone could require an area the “size of Germany”. Delaney tells Carbon Brief:
“In aviation in particular, where you still need some space to transition, you still need a certain amount of biofuels. But these biofuels should be advanced and waste biofuels derived from true waste and residues, and they are available in truly limited amounts, which is why, in parallel, we need to upscale the production of e-fuels [synthetic fuels derived from green hydrogen] for aviation.”
In February this year, more than 65 environmental organisations from countries including the US, Indonesia and the Netherlands wrote to the International Maritime Organization, urging its 176 member states to “exclude biofuels from the industry’s energy mix”.
The organisations cited the “devastating impacts on climate, communities, forests and other ecosystems” from biofuels, cautioning that fuels such as virgin palm oil are often “fraud[ulently]” mislabelled as used cooking oil – a key feedstock for SAF.
Meanwhile, the AR6 report has “medium confidence” that heavy-duty trucks can be decarbonised through a combination of batteries and hydrogen or biofuels. And despite growing interest in the use of biofuels for aviation, it says, “demand and production volumes remain negligible compared to conventional fossil aviation fuels”.
Energy security and reducing import dependence
In many countries, such as India and Indonesia, biofuels are seen as a part of a suite of measures to increase energy security and lessen dependence on fossil-fuel imports from other countries. This imperative received increasing emphasis after the Covid-19 pandemic and Russia’s war on Ukraine.
In developing countries, the “main motivation” behind biofuel policy is to find an alternative to excessive dependence on imported fossil fuels that are a “major drain” on foreign exchanges and subject to volatility and price shocks, says Prof Nandula Raghuram, professor of biotechnology at the Guru Gobind Singh University in New Delhi.
Raghuram, who formerly chaired the International Nitrogen Initiative, tells Carbon Brief that, in order for developing countries to “earn those precious dollars to finance our petroleum imports”, they have to export “valuable primary commodities”, such as grain and vegetables, at the cost of nutritional self-reliance. He adds:
“And so we have to see the biofuel approach as not so much a proactive strategy, but as a sort of reactive strategy to use whatever domestic capacity we have to produce whatever domestic fuel, including biofuels, to reduce that much burden on the exchequer for imports.”
Boost to agriculture
Many governments also see biofuels as an alternative income stream for farmers and a means to revitalise rural economies.
An increasing demand for biofuels could, for example, offer farmers higher returns on their crops, attract industry and services to agrarian areas and help diversify farm incomes.
In 2023, a report by the International Labour Organization (ILO) and the International Renewable Energy Agency (IRENA) estimated that the liquid biofuel industry employed approximately 2.8 million people worldwide.
The bulk of these jobs were in Latin America and Asia, where farming is more labour-intensive and relies on informal and seasonal employment. Brazil’s biofuel sector alone employed nearly one million people in 2023, according to the report.
Meanwhile, North America and Europe accounted for only 12% and 6% of biofuel jobs in 2023, respectively, according to the report.
The chart below shows the number of jobs in the biofuel sector in the top 10 biofuel-producing countries.
Delaney points out that biofuel-related jobs account for less than 1% of all jobs in the EU, adding that the “most-consumed biofuel feedstocks” in the bloc are vegetable oils that are imported from countries such as Brazil and Indonesia. (See: How are countries using biofuels to meet their climate targets?)
He tells Carbon Brief:
“Despite strong biofuels mandates in the EU, the sector didn’t create as many jobs in the end for EU farmers, but, instead, benefited the big fuel suppliers and industry players.”
What are some of the main criticisms of biofuels?
Despite their widespread use and increasing adoption, experts recognise that biofuels “may also carry significant risks” and cause impacts that can undermine their sustainability, if not managed carefully.
Production emissions, land-use change and deforestation
The different chemical processes involved in making biofuels require varying amounts of energy and, therefore, the associated emissions depend on how “clean” a producer country’s energy mix is.
At the same time, growing biofuel crops often relies on emissions-intensive fertilisers and pesticides to keep yields high and consistent. (See Carbon Brief’s detailed explainer on what the world’s reliance on fertilisers means for climate change.)
Biofuel production processes, such as fermentation, also release CO2 and other greenhouse gases, including methane and nitrous oxide.
MIT’s Gurgel tells Carbon Brief that it is “relatively straightforward” to measure these direct emissions from biofuel production.
However, given how different countries account for deforestation, tracking direct land-use change emissions related to biofuel production is slightly more challenging – although still possible, Gurgel says. These emissions can come from clearing forests or converting other land specifically for growing energy crops.
For example, in many tropical forest countries, native rainforests and peatland have been cleared to grow oil palm for biodiesel or sugarcane for bioethanol.
According to one 2011 study by the Centre for International Forestry Research and World Agroforestry (CIFOR-ICRAF), it could take more than 200 years to reverse the carbon emissions caused by clearing peatland to grow palm oil.
Gurgel tells Carbon Brief:
“What is really very hard – I would say impossible – to measure are the indirect impacts of biofuels on land.”
Indirect land-use change occurs when a piece of land used to grow food crops is used instead for biofuels. This can, in turn, require deforestation somewhere else to produce the same amount of crops for food as the original piece of land.
Indirect land-use change can mean a loss of natural ecosystems, with “significant implications for greenhouse gas emissions and land degradation”, according to a 2024 review paper.
Gurgel explains:
“If you provoke a chain of reactions in the market, that can lead to expansion of cropland in another region of the world and then this can push the agricultural frontier further and cause some deforestation…It’s quite hard to know exactly what’s going to happen and those things are interactions in the market that are impossible to measure.”
The “best that scientists can do” to determine if such a “biofuel shock” could indeed cause land-use change in a forest or grassland elsewhere “is try to project those emissions using models, or do very careful statistical work that will never be complete”, he adds.
Delaney, from Transport and Environment, contends that there is enough scientific research to “show that indirect land-use change is real” and to quantify the expansion of “certain food and feedstocks into high-carbon stock” areas, such as forests.
While this is “not easy” to do, he points to the European Commission’s indirect land-use change directive, the accompanying methodology and its scientific teams who study agricultural expansion rates. Delaney continues:
“What we all agree with at this point is that indirect land-use change exists, that it’s a problem, that certain feedstocks like palm and soya are particularly problematic from this perspective and that it is an issue that we need to tackle and capture in the best possible way.
“You cannot just be vague and descriptive without having proper figures behind it – and I think that’s something that at least the EU have tried and that they continue trying to implement. And I hope that, at the global level as well, this will be more recognised.”
Impacts on food, biodiversity and water security
Biofuel-boosting policies have been subjected to intense scrutiny during periods of global food-price spikes in 2008, 2011 and 2013.
Following the spikes, critics attributed increasing biofuel production as a major factor in the near-doubling of cereal prices. Studies have shown that they played a more “modest” role in some of these spikes and a more substantial one in others.
Severalexperts have linked food-price spikes to protests in north Africa and the Middle-East, including the Arab Spring.
In more recent years, the “food vs fuel debate” has come back to the fore since the start of the war in Ukraine in 2022.
This was in part due to the world’s reliance on Ukraine and Russia’s food and energy systems – particularly some of the most food-insecure countries, who had to contend with record-high food prices that peaked in March 2022, but still persist. The war also saw heightened calls for the US and EU to overturn biofuel-boosting policies to free up land to increase domestic food production and bring down food prices.
In developing countries, such as India, the use of cereals and oils to make biofuels while large sections of the population still lack access to adequate nutrition has attracted criticism from experts.
While first-generation biofuels rely on fertilisers to guarantee consistently high yields, second-generation biofuels could directly compete with feed for livestock or their return to soil as nutrients.
According to a 2013 report by the panel of scientists that advises the UN Committee on World Food Security (CFS):
“All crops compete for the same land or water, labour, capital, inputs and investment, and there are no current magic non-food crops that can ensure more harmonious biofuel production on marginal lands.”
This competition, along with clearing forests and other ecosystems for cropland, has consequences not just for emissions, but also for biodiversity, water and nutrients.
According to one 2021 review paper, local species richness and abundance were 37% and 49% lower, respectively, in places where first-generation biofuel crops were being grown than in places with primary vegetation. Additionally, it found that soya, wheat, maize and palm oil had the “worst effects” on local biodiversity, with Asia and central and South America being the most-impacted regions.
Biofuels’ impact on water resources, similarly, is highly crop- and location-specific.
For instance, growing a “thirsty” crop such as sugarcane in Brazil could have minimal impacts on local water resources, due to the region’s abundant rainfall. But in drought-prone India, experts have estimated that a litre of sugarcane ethanol requires more than 2,500 litres of water to produce and relies entirely on irrigation. Research has also found that nearly half of China’s maize crop requires irrigation to grow.
According to agricultural economist Dr Shweta Saini, meeting India’s 2025-26 biofuels target will require 275m tonnes of sugarcane, 6m tonnes of maize and 5.5m tonnes of rice. According to one 2020 study cited by Bloomberg columnist David Fickling, increasing sugarcane production to meet India’s biofuel targets “could consume an additional 348bn cubic metres of water…around twice what is used by every city” in the country.
Prof Raghuram tells Carbon Brief:
“Water resources are drying up everywhere in the country and by incentivising, through policy, a water-guzzling industry like this, we are inviting a sustainability crisis.”
‘Feedstock crunch’
Another concern surrounding biofuels is that there may not be enough supply to go around to meet rising demand. The IEA described the potential shortfall as a “feedstock supply crunch” in a 2022 report.
Fuels derived from the most commonly used waste and residues, in particular, could be approaching supply limits, the IEA warns, as these fuels satisfy both sustainability and feedstock policy objectives in the US and EU.
Consumption of vegetable oil for biofuel production is expected to soar by 46% over 2022-27, the report says. Meanwhile, the world is estimated to “nearly exhaust 100% of supplies” of used cooking oil and animal fats within the decade.
For the world to stay on a net-zero trajectory, “a more than three times production increase” would be required, the report adds. It warns that if the limited availability of second-generation feedstocks continues unchanged, “the potential for biofuels to contribute to global decarbonisation efforts could be undermined”.
The chart below shows the biofuel demand share of global crop production from 2022-27.
How are countries using biofuels to meet their climate targets?
Broadly, biofuel policies are divided into two categories.
Technology “push” policies focus on the research and development of new technologies and include measures such as research funding, pilot plants and government support for commercialising nascent technologies.
Meanwhile, market “pull” policies drive demand for existing and emerging biofuels through measures such as “biofuel blending mandates” – where countries prescribe a certain percentage of biofuel with fossil fuels – and tax breaks for producers and vehicle owners.
US
The US Renewable Fuel Standard (RFS) is the world’s largest existing biofuel programme. Its mandates are keenly watched and contested by the country’s farm and petroleum lobbies.
Under RFS, the US Environmental Protection Agency sets out minimum levels of biofuels that must be blended into the US’s transport, heating and jet fuel supplies.
Under the policy, oil refiners can either blend mandated volumes of biofuels into the nation’s fuel supply or buy credits – called Renewable Identification Numbers (RINS) – from those that do.
While the programme sets out emissions reduction targets, the environmental impacts of cropland expansion and monoculture driven by the policy have been cause for concern by experts.
According to one 2022 study, the RFS programme increased US fertiliser use by 3-8% each year between 2008-16 and caused enough domestic emissions from land-use change that the carbon intensity of corn ethanol was “no less than that of gasoline and likely at least 24% higher”. Additionally, the programme’s impacts on biodiversity have not yet been fully assessed.
In June 2025, the Trump administration announced plans to expand the biofuel mandate to a “record 24.02bn gallons” next year – an 8% increase from its 2025 target – while seeking to discourage imported biofuels.
EU
In the EU, policymakers have promoted biofuels since 2003 to reduce emissions in the transport system. As part of the EU’s Renewable Energy Directive (RED), biofuels have been explicitly linked to emissions targets.
Under the current iteration of RED (REDIII) – revised as part of the EU’s Fit for 55 package – EU countries are required to either achieve a share of 29% of renewable energy in transport or to reduce the emissions intensity of transport fuels by 14.5%. Additionally, it sets out a sub-target for “advanced biofuels” of 5.5% and excludes the use of food and feed-based biofuels in aviation and shipping.
In 2015, the European Commission acknowledged that the indirect land-use change emissions of first-generation biofuels could “fully negate” any emission savings by biofuels. The commission capped the use of first-generation biofuels in each member country at 7% of all energy used in transport by 2020, but did not announce plans to phase them out.
As of 2021, nearly 60% of all biofuels used in the EU were still made from food and feed crops, according to analysis by Oxfam. While the latest RED legislation continues to push for the use of advanced and waste biofuels, campaigners warn that a lack of clear definitions could increase the risk of “loopholes” and fraud, exacerbated by increased demand.
T&E’s Delaney tells Carbon Brief:
“You’re putting a lot of pressure on the land – you might require a lot of pesticides and irrigation – and there is not even enough land in Europe for this. How can you make sure true sustainability safeguards are in place so that you’re not actually driving additional demand for land in [biodiverse countries such as] Brazil?”
Brazil
Brazil has the world’s oldest biofuels mandate, dating back to the 1970s, established in a bid to insulate the country from expensive oil imports.
In 2017, Brazil announced a state policy called RenovaBio that set out national carbon intensity reduction targets for transport, decided biofuel mandates and created an open market for biofuel decarbonisation carbon reduction credits called CBIO.
In October 2024, Brazil enacted a “Fuels of the Future” law that replaced RenovaBio, with president Lula declaring that “Brazil will lead the world’s largest energy revolution”. The law aims to boost biofuel and sustainable aviation fuel (SAF) use, increasing biodiesel blending mandates by 1% every year starting in 2025 until it reaches 20% by March 2030.
Biofuels now account for 22% of the energy that fuels transport in Brazil and its ethanol market is “second in size only” to the US.
In June this year, Brazil announced that the country was increasing its biofuel blending mandates from 1 August in a bid to make the country “gasoline self-sufficient for the first time in 15 years”, reported Reuters.
Indonesia
As the world’s biggest palm oil producer, Indonesia has continued to raise its biodiesel blending mandates to meet its domestic energy needs.
The country first introduced mandatory biodiesel blending in 2008, at 2.5%. The mandate is currently at 40% in 2025 and, starting next year, could go up to 50% with an eventual goal of 100%.
While Indonesia’s president Prabowo Subianto has stated that implementing 50% blending could save the country $20bn in reduced diesel imports, the move would need an estimated 2.3m hectares of land, including protected forests, resulting in the “country’s largest-ever deforestation project”, according to Mongabay.
It could also compete with palm oil meant for domestic and international food markets, impacting already soaring prices and signalling the “end of cheap palm oil”.
India
India has quickly joined the ranks of major biofuel producers, due to high-level political support, policies and a diversity of feedstocks. In 2023, India launched the Global Biofuels Alliance as one of its key priorities of its G20 presidency.
Biofuel mandates are outlined in the country’s National Policy on Biofuels, first published in 2009 and subsequently amended in 2018 and 2022. In 2022, India achieved its 10% ethanol blending target ahead of schedule and is pursuing a 20% blending target by 2025, as well as a 5% biodiesel blending target by 2030.
India’s rapid biofuel push, however, has been criticised by food security experts as hunger levels rise, for its impact on endemic rainforests and, most recently, by vehicle owners for the impact of blended fuel on car engines.
Prof Raghuram says:
“From a sheer governance angle and sustainability angle, there are a lot of compromises being made to somehow push this whole thing. Even the land available in India is shrinking, as various reforms and dilution of environmental safeguards in the last 10 years have made it relatively easier to convert farm and forest land for non-agricultural purposes.”
China
China developed its first biofuel policies over 20 years ago and is one of the world’s biggest biofuel producers.
In 2017, China announced a new mandate expanding the use of fuel including bioethanol from 11 trial provinces to the entire country by 2020. However, Reuters and South China Morning Post reported that this was suspended in 2020. Only 15 provinces still maintain biofuel mandates, according to the US Department of Agriculture, which notes that a “lack of meaningful support for domestic biofuel consumption while aggressively promoting electric vehicles indicates a strategic choice to pursue transportation decarbonisation through electrification rather than liquid biofuels”.
At the same time, biofuel production in China grew by 30% in 2024, according to the Energy Institute’s Statistical Review.
While most of China’s biofuel production is grain-based, tax incentives for ethanol production have been gradually phased out and alternative biofuels have been incentivised, according to the IEA. China is currently piloting a scheme to increase biodiesel consumption at home, even as it exports biodiesel and used cooking oil to the EU and US.
How could climate change impact biofuel production?
Despite the well-documented impacts of climate change-induced extreme weather on land, agriculture and forests, there is currently little scientific literature examining how continued warming will impact global biofuel production.
One 2020 study found that bioethanol availability globally could drop – by 23% under a “very high emissions scenario” and by 4.3% under a “low emissions” scenario by 2060 – “if climate change risk is not adequately mitigated” and corn continues to be the dominant feedstock.
The study “encourages” changing out corn for switchgrass as a key source of bioethanol.
Another 2021 study examining the viability of China’s planned biofuel targets estimated that energy crop yields in China in the 2050s will decrease significantly compared to the 2010s, due to the impacts of climate change.
It found that climate change is expected to have a “substantial impact” on the land available for biofuel production in the 2050s, under both scenarios used in the study.
Gurgel, from MIT, tells Carbon Brief that it is “very hard to take into account how much climate change will damage bio-energy production” at this point, given the uncertainty of what emissions pathway the world will follow.
While most climate models “do a very good job” at forecasting average temperature change in the future, they do an “average job” at projecting rainfall change, or how many extreme weather events countries will see in the future, he says.
This is important because many biofuel crops, such as sugarcane and palm oil, are water-intensive and thrive in regions with abundant rainfall, but yields may fail in drier parts of the world that could see more drought.
Given this “cascade of uncertainties”, he continues, “we don’t have a clear picture of how bad the future [of agriculture] will be – we just know it will be more challenging than today”.
Delaney, meanwhile, asks whether investing in biofuels, which will be impacted by climate change, is a “good investment” for the long term. He tells Carbon Brief:
“I think these are the questions that we need to ask ourselves when we see – not just in India, but Indonesia, Brazil, everywhere around the world right now – this growing appetite for biofuels. Can we really keep the promises that we made at the end of the day?”
The post Q&A: How countries are using biofuels to meet their climate targets appeared first on Carbon Brief.
Q&A: How countries are using biofuels to meet their climate targets
Drought and heatwaves occurring together – known as “compound” events – have “surged” across the world since the early 2000s, a new study shows.
Compound drought and heat events (CDHEs) can have devastating effects, creating the ideal conditions for intense wildfires, such as Australia’s “Black Summer” of 2019-20 where bushfires burned 24m hectares and killed 33 people.
The research, published in Science Advances, finds that the increase in CDHEs is predominantly being driven by events that start with a heatwave.
The global area affected by such “heatwave-led” compound events has more than doubled between 1980-2001 and 2002-23, the study says.
The rapid increase in these events over the last 23 years cannot be explained solely by global warming, the authors note.
Since the late 1990s, feedbacks between the land and the atmosphere have become stronger, making heatwaves more likely to trigger drought conditions, they explain.
One of the study authors tells Carbon Brief that societies must pay greater attention to compound events, which can “cause severe impacts on ecosystems, agriculture and society”.
Compound events
CDHEs are extreme weather events where drought and heatwave conditions occur simultaneously – or shortly after each other – in the same region.
These events are often triggered by large-scale weather patterns, such as “blocking” highs, which can produce “prolonged” hot and dry conditions, according to the study.
Prof Sang-Wook Yeh is one of the study authors and a professor at the Ewha Womans University in South Korea. He tells Carbon Brief:
“When heatwaves and droughts occur together, the two hazards reinforce each other through land-atmosphere interactions. This amplifies surface heating and soil moisture deficits, making compound events more intense and damaging than single hazards.”
CDHEs can begin with either a heatwave or a drought.
The sequence of these extremes is important, the study says, as they have different drivers and impacts.
For example, in a CDHE where the heatwave was the precursor, increased direct sunshine causes more moisture loss from soils and plants, leading to a drought.
Conversely, in an event where the drought was the precursor, the lack of soil moisture means that less of the sun’s energy goes into evaporation and more goes into warming the Earth’s surface. This produces favourable conditions for heatwaves.
The study shows that the majority of CDHEs globally start out as a drought.
In recent years, there has been increasing focus on these events due to the devastating impact they have on agriculture, ecosystems and public health.
In Russia in the summer of 2010, a compound drought-heatwave event – and the associated wildfires – caused the death of nearly 55,000 people, the study notes.
The record-breaking Pacific north-west “heat dome” in 2021 triggered extreme drought conditions that caused “significant declines” in wheat yields, as well as in barley, canola and fruit production in British Columbia and Alberta, Canada, says the study.
Increasing events
To assess how CDHEs are changing, the researchers use daily reanalysis data to identify droughts and heatwaves events. (Reanalysis data combines past observations with climate models to create a historical climate record.) Then, using an algorithm, they analyse how these events overlap in both time and space.
The study covers the period from 1980 to 2023 and the world’s land surface, excluding polar regions where CDHEs are rare.
The research finds that the area of land affected by CDHEs has “increased substantially” since the early 2000s.
Heatwave-led events have been the main contributor to this increase, the study says, with their spatial extent rising 110% between 1980-2001 and 2002-23, compared to a 59% increase for drought-led events.
The map below shows the global distribution of CDHEs over 1980-2023. The charts show the percentage of the land surface affected by a heatwave-led CDHE (red) or a drought-led CDHE (yellow) in a given year (left) and relative increase in each CDHE type (right).
The study finds that CDHEs have occurred most frequently in northern South America, the southern US, eastern Europe, central Africa and south Asia.
Threshold passed
The authors explain that the increase in heatwave-led CDHEs is related to rising global temperatures, but that this does not tell the whole story.
In the earlier 22-year period of 1980-2001, the study finds that the spatial extent of heatwave-led CDHEs rises by 1.6% per 1C of global temperature rise. For the more-recent period of 2022-23, this increases “nearly eightfold” to 13.1%.
The change suggests that the rapid increase in the heatwave-led CDHEs occurred after the global average temperature “surpasse[d] a certain temperature threshold”, the paper says.
This threshold is an absolute global average temperature of 14.3C, the authors estimate (based on an 11-year average), which the world passed around the year 2000.
Investigating the recent surge in heatwave-leading CDHEs further, the researchers find a “regime shift” in land-atmosphere dynamics “toward a persistently intensified state after the late 1990s”.
In other words, the way that drier soils drive higher surface temperatures, and vice versa, is becoming stronger, resulting in more heatwave-led compound events.
Daily data
The research has some advantages over other previous studies, Yeh says. For instance, the new work uses daily estimations of CDHEs, compared to monthly data used in past research. This is “important for capturing the detailed occurrence” of these events, says Yeh.
He adds that another advantage of their study is that it distinguishes the sequence of droughts and heatwaves, which allows them to “better understand the differences” in the characteristics of CDHEs.
Dr Meryem Tanarhte is a climate scientist at the University Hassan II in Morocco, and Dr Ruth Cerezo Mota is a climatologist and a researcher at the National Autonomous University of Mexico. Both scientists, who were not involved in the study, agree that the daily estimations give a clearer picture of how CDHEs are changing.
Cerezo-Mota adds that another major contribution of the study is its global focus. She tells Carbon Brief that in some regions, such as Mexico and Africa, there is a lack of studies on CDHEs:
“Not because the events do not occur, but perhaps because [these regions] do not have all the data or the expertise to do so.”
However, she notes that the reanalysis data used by the study does have limitations with how it represents rainfall in some parts of the world.
Compound impacts
The study notes that if CDHEs continue to intensify – particularly events where heatwaves are the precursors – they could drive declining crop productivity, increased wildfire frequency and severe public health crises.
These impacts could be “much more rapid and severe as global warming continues”, Yeh tells Carbon Brief.
Tanarhte notes that these events can be forecasted up to 10 days ahead in many regions. Furthermore, she says, the strongest impacts can be prevented “through preparedness and adaptation”, including through “water management for agriculture, heatwave mitigation measures and wildfire mitigation”.
The study recommends reassessing current risk management strategies for these compound events. It also suggests incorporating the sequences of drought and heatwaves into compound event analysis frameworks “to enhance climate risk management”.
Cerezo-Mota says that it is clear that the world needs to be prepared for the increased occurrence of these events. She tells Carbon Brief:
“These [risk assessments and strategies] need to be carried out at the local level to understand the complexities of each region.”
The post Heatwaves driving recent ‘surge’ in compound drought and heat extremes appeared first on Carbon Brief.
Heatwaves driving recent ‘surge’ in compound drought and heat extremes
Greenhouse Gases
DeBriefed 6 March 2026: Iran energy crisis | China climate plan | Bristol’s ‘pioneering’ wind turbine
Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.
This week
Energy crisis
ENERGY SPIKE: US-Israeli attacks on Iran and subsequent counterattacks across the Middle East have sent energy prices “soaring”, according to Reuters. The newswire reported that the region “accounts for just under a third of global oil production and almost a fifth of gas”. The Guardian noted that shipping traffic through the strait of Hormuz, which normally ferries 20% of the world’s oil, “all but ground to a halt”. The Financial Times reported that attacks by Iran on Middle East energy facilities – notably in Qatar – triggered the “biggest rise in gas prices since Russia’s full-scale invasion of Ukraine”.
‘RISK’ AND ‘BENEFITS’: Bloomberg reported on increases in diesel prices in Europe and the US, speculating that rising fuel costs could be “a risk for president Donald Trump”. US gas producers are “poised to benefit from the big disruption in global supply”, according to CNBC. Indian government sources told the Economic Times that Russia is prepared to “fulfil India’s energy demands”. China Daily quoted experts who said “China’s energy security remains fundamentally unshaken”, thanks to “emergency stockpiles and a wide array of import channels”.
‘ESSENTIAL’ RENEWABLES: Energy analysts said governments should cut their fossil-fuel reliance by investing in renewables, “rather than just seeking non-Gulf oil and gas suppliers”, reported Climate Home News. This message was echoed by UK business secretary Peter Kyle, who said “doubling down on renewables” was “essential” amid “regional instability”, according to the Daily Telegraph.
China’s climate plan
PEAK COAL?: China has set out its next “five-year plan” at the annual “two sessions” meeting of the National People’s Congress, including its climate strategy out to 2030, according to the Hong Kong-based South China Morning Post. The plan called for China to cut its carbon emissions per unit of gross domestic product (GDP) by 17% from 2026 to 2030, which “may allow for continued increase in emissions given the rate of GDP growth”, reported Reuters. The newswire added that the plan also had targets to reach peak coal in the next five years and replace 30m tonnes per year of coal with renewables.
ACTIVE YET PRUDENT: Bloomberg described the new plan as “cautious”, stating that it “frustrat[es] hopes for tighter policy that would drive the nation to peak carbon emissions well before president Xi Jinping’s 2030 deadline”. Carbon Brief has just published an in-depth analysis of the plan. China Daily reported that the strategy “highlights measures to promote the climate targets of peaking carbon dioxide emissions before 2030”, which China said it would work towards “actively yet prudently”.
Around the world
- EU RULES: The European Commission has proposed new “made in Europe” rules to support domestic low-carbon industries, “against fierce competition from China”, reported Agence France-Presse. Carbon Brief examined what it means for climate efforts.
- RECORD HEAT: The US National Oceanic and Atmospheric Administration has said there is a 50-60% chance that the El Niño weather pattern could return this year, amplifying the effect of global warming and potentially driving temperatures to “record highs”, according to Euronews.
- FLAGSHIP FUND: The African Development Bank’s “flagship clean energy fund” plans to more than double its financing to $2.5bn for African renewables over the next two years, reported the Associated Press.
- NO WITHDRAWAL: Vanuatu has defied US efforts to force the Pacific-island nation to drop a UN draft resolution calling on the world to implement a landmark International Court of Justice (ICJ) ruling on climate, according to the Guardian.
98
The number of nations that submitted their national reports on tackling nature loss to the UN on time – just half of the 196 countries that are part of the UN biodiversity treaty – according to analysis by Carbon Brief.
Latest climate research
- Sea levels are already “much higher than assumed” in most assessments of the threat posed by sea-level rise, due to “inadequate” modelling assumptions | Nature
- Accelerating human-caused global warming could see the Paris Agreement’s 1.5C limit crossed before 2030 | Geophysical Research Letters covered by Carbon Brief
- Future “super El Niño events” could “significantly lower” solar power generation due to a reduction in solar irradiance in key regions, such as California and east China | Communications Earth & Environment
(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Monday, Tuesday, Wednesday, Thursday and Friday.)
Captured
UK greenhouse gas emissions in 2025 fell to 54% below 1990 levels, the baseline year for its legally binding climate goals, according to new Carbon Brief analysis. Over the same period, data from the World Bank shows that the UK’s economy has expanded by 95%, meaning that emissions have been decoupling from growth.
Spotlight
Bristol’s ‘pioneering’ community wind turbine
Following the recent launch of the UK government’s local power plan, Carbon Brief visits one of the country’s community-energy success stories.
The Lawrence Weston housing estate is set apart from the main city of Bristol, wedged between the tree-lined grounds of a stately home and a sprawl of warehouses and waste incinerators. It is one of the most deprived areas in the city.
Yet, just across the M5 motorway stands a structure that has brought the spoils of the energy transition directly to this historically forgotten estate – a 4.2 megawatt (MW) wind turbine.
The turbine is owned by local charity Ambition Lawrence Weston and all the profits from its electricity sales – around £100,000 a year – go to the community. In the UK’s local power plan, it was singled out by energy secretary Ed Miliband as a “pioneering” project.
‘Sustainable income’
On a recent visit to the estate by Carbon Brief, Ambition Lawrence Weston’s development manager, Mark Pepper, rattled off the story behind the wind turbine.
In 2012, Pepper and his team were approached by the Bristol Energy Cooperative with a chance to get a slice of the income from a new solar farm. They jumped at the opportunity.
“Austerity measures were kicking in at the time,” Pepper told Carbon Brief. “We needed to generate an income. Our own, sustainable income.”
With the solar farm proving to be a success, the team started to explore other opportunities. This began a decade-long process that saw them navigate the Conservative government’s “ban” on onshore wind, raise £5.5m in funding and, ultimately, erect the turbine in 2023.
Today, the turbine generates electricity equivalent to Lawrence Weston’s 3,000 households and will save 87,600 tonnes of carbon dioxide (CO2) over its lifetime.
‘Climate by stealth’
Ambition Lawrence Weston’s hub is at the heart of the estate and the list of activities on offer is seemingly endless: birthday parties, kickboxing, a library, woodworking, help with employment and even a pop-up veterinary clinic. All supported, Pepper said, with the help of a steady income from community-owned energy.
The centre itself is kitted out with solar panels, heat pumps and electric-vehicle charging points, making it a living advertisement for the net-zero transition. Pepper noted that the organisation has also helped people with energy costs amid surging global gas prices.
Gesturing to the England flags dangling limply on lamp posts visible from the kitchen window, he said:
“There’s a bit of resentment around immigration and scarcity of materials and provision, so we’re trying to do our bit around community cohesion.”
This includes supper clubs and an interfaith grand iftar during the Muslim holy month of Ramadan.
Anti-immigration sentiment in the UK has often gone hand-in-hand with opposition to climate action. Right-wing politicians and media outlets promote the idea that net-zero policies will cost people a lot of money – and these ideas have cut through with the public.
Pepper told Carbon Brief he is sympathetic to people’s worries about costs and stressed that community energy is the perfect way to win people over:
“I think the only way you can change that is if, instead of being passive consumers…communities are like us and they’re generating an income to offset that.”
From the outset, Pepper stressed that “we weren’t that concerned about climate because we had other, bigger pressures”, adding:
“But, in time, we’ve delivered climate by stealth.”
Watch, read, listen
OIL WATCH: The Guardian has published a “visual guide” with charts and videos showing how the “escalating Iran conflict is driving up oil and gas prices”.
MURDER IN HONDURAS: Ten years on from the murder of Indigenous environmental justice advocate Berta Cáceres, Drilled asked why Honduras is still so dangerous for environmental activists.
TALKING WEATHER: A new film, narrated by actor Michael Sheen and titled You Told Us To Talk About the Weather, aimed to promote conversation about climate change with a blend of “poetry, folk horror and climate storytelling”.
Coming up
- 8 March: Colombia parliamentary election
- 9-19 March: 31st Annual Session of the International Seabed Authority, Kingston, Jamaica
- 11 March: UN Environment Programme state of finance for nature 2026 report launch
Pick of the jobs
- London School of Economics and Political Science, fellow in the social science of sustainability | Salary: £43,277-£51,714. Location: London
- NORCAP, innovative climate finance expert | Salary: Unknown. Location: Kyiv, Ukraine
- WBHM, environmental reporter | Salary: $50,050-$81,330. Location: Birmingham, Alabama, US
- Climate Cabinet, data engineer | Salary: hourly rate of $60-$120 per hour. Location: Remote anywhere in the US
DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.
This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.
The post DeBriefed 6 March 2026: Iran energy crisis | China climate plan | Bristol’s ‘pioneering’ wind turbine appeared first on Carbon Brief.
China’s leadership has published a draft of its 15th five-year plan setting the strategic direction for the nation out to 2030, including support for clean energy and energy security.
The plan sets a target to cut China’s “carbon intensity” by 17% over the five years from 2026-30, but also changes the basis for calculating this key climate metric.
The plan continues to signal support for China’s clean-energy buildout and, in general, contains no major departures from the country’s current approach to the energy transition.
The government reaffirms support for several clean-energy industries, ranging from solar and electric vehicles (EVs) through to hydrogen and “new-energy” storage.
The plan also emphasises China’s willingness to steer climate governance and be seen as a provider of “global public goods”, in the form of affordable clean-energy technologies.
However, while the document says it will “promote the peaking” of coal and oil use, it does not set out a timeline and continues to call for the “clean and efficient” use of coal.
This shows that tensions remain between China’s climate goals and its focus on energy security, leading some analysts to raise concerns about its carbon-cutting ambition.
Below, Carbon Brief outlines the key climate change and energy aspects of the plan, including targets for carbon intensity, non-fossil energy and forestry.
Note: this article is based on a draft published on 5 March and will be updated if any significant changes are made in the final version of the plan, due to be released at the close next week of the “two sessions” meeting taking place in Beijing.
- What is China’s 15th five-year plan?
- What does the plan say about China’s climate action?
- What is China’s new CO2 intensity target?
- Does the plan encourage further clean-energy additions?
- What does the plan signal about coal?
- How will China approach global climate governance in the next five years?
- What else does the plan cover?
What is China’s 15th five-year plan?
Five-year plans are one of the most important documents in China’s political system.
Addressing everything from economic strategy to climate policy, they outline the planned direction for China’s socio-economic development in a five-year period. The 15th five-year plan covers 2026-30.
These plans include several “main goals”. These are largely quantitative indicators that are seen as particularly important to achieve and which provide a foundation for subsequent policies during the five-year period.
The table below outlines some of the key “main goals” from the draft 15th five-year plan.
| Category | Indicator | Indicator in 2025 | Target by 2030 | Cumulative target over 2026-2030 | Characteristic |
|---|---|---|---|---|---|
| Economic development | Gross domestic product (GDP) growth (%) | 5 | Maintained within a reasonable range and proposed annually as appropriate. | Anticipatory | |
| ‘Green and low-carbon | Reduction in CO2 emissions per unit of GDP (%) | 17.7 | 17 | Binding | |
| Share of non-fossil energy in total energy consumption (%) | 21.7 | 25 | Binding | ||
| Security guarantee | Comprehensive energy production capacity (100m tonnes of standard coal equivalent) |
51.3 | 58 | Binding |
Select list of targets highlighted in the “main goals” section of the draft 15th five-year plan. Source: Draft 15th five-year plan.
Since the 12th five-year plan, covering 2011-2015, these “main goals” have included energy intensity and carbon intensity as two of five key indicators for “green ecology”.
The previous five-year plan, which ran from 2021-2025, introduced the idea of an absolute “cap” on carbon dioxide (CO2) emissions, although it did not provide an explicit figure in the document. This has been subsequently addressed by a policy on the “dual-control of carbon” issued in 2024.
The latest plan removes the energy-intensity goal and elevates the carbon-intensity goal, but does not set an absolute cap on emissions (see below).
It covers the years until 2030, before which China has pledged to peak its carbon emissions. (Analysis for Carbon Brief found that emissions have been “flat or falling” since March 2024.)
The plans are released at the two sessions, an annual gathering of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). This year, it runs from 4-12 March.
The plans are often relatively high-level, with subsequent topic-specific five-year plans providing more concrete policy guidance.
Policymakers at the National Energy Agency (NEA) have indicated that in the coming years they will release five sector-specific plans for 2026-2030, covering topics such as the “new energy system”, electricity and renewable energy.
There may also be specific five-year plans covering carbon emissions and environmental protection, as well as the coal and nuclear sectors, according to analysts.
Other documents published during the two sessions include an annual government work report, which outlines key targets and policies for the year ahead.
The gathering is attended by thousands of deputies – delegates from across central and local governments, as well as Chinese Communist party members, members of other political parties, academics, industry leaders and other prominent figures.
What does the plan say about China’s climate action?
Achieving China’s climate targets will remain a key driver of the country’s policies in the next five years, according to the draft 15th five-year plan.
It lists the “acceleration” of China’s energy transition as a “major achievement” in the 14th five-year plan period (2021-2025), noting especially how clean-power capacity had overtaken fossil fuels.
The draft says China will “actively and steadily advance and achieve carbon peaking”, with policymakers continuing to strike a balance between building a “green economy” and ensuring stability.
Climate and environment continues to receive its own chapter in the plan. However, the framing and content of this chapter has shifted subtly compared with previous editions, as shown in the table below. For example, unlike previous plans, the first section of this chapter focuses on China’s goal to peak emissions.
| 11th five-year plan (2006-2010) | 12th five-year plan (2011-2015) | 13th five-year plan (2016-2020) | 14th five-year plan (2021-2025) | 15th five-year plan (2026-2030) | |
|---|---|---|---|---|---|
| Chapter title | Part 6: Build a resource-efficient and environmentally-friendly society | Part 6: Green development, building a resource-efficient and environmentally friendly society | Part 10: Ecosystems and the environment | Part 11: Promote green development and facilitate the harmonious coexistence of people and nature | Part 13: Accelerating the comprehensive green transformation of economic and social development to build a beautiful China |
| Sections | Developing a circular economy | Actively respond to global climate change | Accelerate the development of functional zones | Improve the quality and stability of ecosystems | Actively and steadily advancing and achieving carbon peaking |
| Protecting and restoring natural ecosystems | Strengthen resource conservation and management | Promote economical and intensive resource use | Continue to improve environmental quality | Continuously improving environmental quality | |
| Strengthening environmental protection | Vigorously develop the circular economy | Step up comprehensive environmental governance | Accelerate the green transformation of the development model | Enhancing the diversity, stability, and sustainability of ecosystems | |
| Enhancing resource management | Strengthen environmental protection efforts | Intensify ecological conservation and restoration | Accelerating the formation of green production and lifestyles | ||
| Rational utilisation of marine and climate resources | Promoting ecological conservation and restoration | Respond to global climate change | |||
| Strengthen the development of water conservancy and disaster prevention and mitigation systems | Improve mechanisms for ensuring ecological security | ||||
| Develop green and environmentally-friendly industries |
Title and main sections of the climate and environment-focused chapters in the last five five-year plans. Source: China’s 11th, 12th, 13th, 14th and 15th five-year plans.
The climate and environment chapter in the latest plan calls for China to “balance [economic] development and emission reduction” and “ensure the timely achievement of carbon peak targets”.
Under the plan, China will “continue to pursue” its established direction and objectives on climate, Prof Li Zheng, dean of the Tsinghua University Institute of Climate Change and Sustainable Development (ICCSD), tells Carbon Brief.
What is China’s new CO2 intensity target?
In the lead-up to the release of the plan, analysts were keenly watching for signals around China’s adoption of a system for the “dual-control of carbon”.
This would combine the existing targets for carbon intensity – the CO2 emissions per unit of GDP – with a new cap on China’s total carbon emissions. This would mark a dramatic step for the country, which has never before set itself a binding cap on total emissions.
Policymakers had said last year that this framework would come into effect during the 15th five-year plan period, replacing the previous system for the “dual-control of energy”.
However, the draft 15th five-year plan does not offer further details on when or how both parts of the dual-control of carbon system will be implemented. Instead, it continues to focus on carbon intensity targets alone.
Looking back at the previous five-year plan period, the latest document says China had achieved a carbon-intensity reduction of 17.7%, just shy of its 18% goal.
This is in contrast with calculations by Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air (CREA), which had suggested that China had only cut its carbon intensity by 12% over the past five years.
At the time it was set in 2021, the 18% target had been seen as achievable, with analysts telling Carbon Brief that they expected China to realise reductions of 20% or more.
However, the government had fallen behind on meeting the target.
Last year, ecology and environment minister Huang Runqiu attributed this to the Covid-19 pandemic, extreme weather and trade tensions. He said that China, nevertheless, remained “broadly” on track to meet its 2030 international climate pledge of reducing carbon intensity by more than 65% from 2005 levels.
Myllyvirta tells Carbon Brief that the newly reported figure showing a carbon-intensity reduction of 17.7% is likely due to an “opportunistic” methodological revision. The new methodology now includes industrial process emissions – such as cement and chemicals – as well as the energy sector.
(This is not the first time China has redefined a target, with regulators changing the methodology for energy intensity in 2023.)
For the next five years, the plan sets a target to reduce carbon intensity by 17%, slightly below the previous goal.
However, the change in methodology means that this leaves space for China’s overall emissions to rise by “3-6% over the next five years”, says Myllyvirta. In contrast, he adds that the original methodology would have required a 2% fall in absolute carbon emissions by 2030.
The dashed lines in the chart below show China’s targets for reducing carbon intensity during the 12th, 13th, 14th and 15th five-year periods, while the bars show what was achieved under the old (dark blue) and new (light blue) methodology.
The carbon-intensity target is the “clearest signal of Beijing’s climate ambition”, says Li Shuo, director at the Asia Society Policy Institute’s (ASPI) China climate hub.
It also links directly to China’s international pledge – made in 2021 – to cut its carbon intensity to more than 65% below 2005 levels by 2030.
To meet this pledge under the original carbon-intensity methodology, China would have needed to set a target of a 23% reduction within the 15th five-year plan period. However, the country’s more recent 2035 international climate pledge, released last year, did not include a carbon-intensity target.
As such, ASPI’s Li interprets the carbon-intensity target in the draft 15th five-year plan as a “quiet recalibration” that signals “how difficult the original 2030 goal has become”.
Furthermore, the 15th five-year plan does not set an absolute emissions cap.
This leaves “significant ambiguity” over China’s climate plans, says campaign group 350 in a press statement reacting to the draft plan. It explains:
“The plan was widely expected to mark a clearer transition from carbon-intensity targets toward absolute emissions reductions…[but instead] leaves significant ambiguity about how China will translate record renewable deployment into sustained emissions cuts.”
Myllyvirta tells Carbon Brief that this represents a “continuation” of the government’s focus on scaling up clean-energy supply while avoiding setting “strong measurable emission targets”.
He says that he would still expect to see absolute caps being set for power and industrial sectors covered by China’s emissions trading scheme (ETS). In addition, he thinks that an overall absolute emissions cap may still be published later in the five-year period.
Despite the fact that it has yet to be fully implemented, the switch from dual-control of energy to dual-control of carbon represents a “major policy evolution”, Ma Jun, director of the Institute of Public and Environmental Affairs (IPE), tells Carbon Brief. He says that it will allow China to “provide more flexibility for renewable energy expansion while tightening the net on fossil-fuel reliance”.
Does the plan encourage further clean-energy additions?
“How quickly carbon intensity is reduced largely depends on how much renewable energy can be supplied,” says Yao Zhe, global policy advisor at Greenpeace East Asia, in a statement.
The five-year plan continues to call for China’s development of a “new energy system that is clean, low-carbon, safe and efficient” by 2030, with continued additions of “wind, solar, hydro and nuclear power”.
In line with China’s international pledge, it sets a target for raising the share of non-fossil energy in total energy consumption to 25% by 2030, up from just under 21.7% in 2025.
The development of “green factories” and “zero-carbon [industrial] parks” has been central to many local governments’ strategies for meeting the non-fossil energy target, according to industry news outlet BJX News. A call to build more of these zero-carbon industrial parks is listed in the five-year plan.
Prof Pan Jiahua, dean of Beijing University of Technology’s Institute of Ecological Civilization, tells Carbon Brief that expanding demand for clean energy through mechanisms such as “green factories” represents an increasingly “bottom-up” and “market-oriented” approach to the energy transition, which will leave “no place for fossil fuels”.
He adds that he is “very much sure that China’s zero-carbon process is being accelerated and fossil fuels are being driven out of the market”, pointing to the rapid adoption of EVs.
The plan says that China will aim to double “non-fossil energy” in 10 years – although it does not clarify whether this means their installed capacity or electricity generation, or what the exact starting year would be.
Research has shown that doubling wind and solar capacity in China between 2025-2035 would be “consistent” with aims to limit global warming to 2C.
While the language “certainly” pushes for greater additions of renewable energy, Yao tells Carbon Brief, it is too “opaque” to be a “direct indication” of the government’s plans for renewable additions.
She adds that “grid stability and healthy, orderly competition” is a higher priority for policymakers than guaranteeing a certain level of capacity additions.
China continues to place emphasis on the need for large-scale clean-energy “bases” and cross-regional power transmission.
The plan says China must develop “clean-energy bases…in the three northern regions” and “integrated hydro-wind-solar complexes” in south-west China.
It specifically encourages construction of “large-scale wind and solar” power bases in desert regions “primarily” for cross-regional power transmission, as well as “major hydropower” projects, including the Yarlung Tsangpo dam in Tibet.
As such, the country should construct “power-transmission corridors” with the capacity to send 420 gigawatts (GW) of electricity from clean-energy bases in western provinces to energy-hungry eastern provinces by 2030, the plan says.
State Grid, China’s largest grid operator, plans to install “another 15 ultra-high voltage [UHV] transmission lines” by 2030, reports Reuters, up from the 45 UHV lines built by last year.
Below are two maps illustrating the interlinkages between clean-energy bases in China in the 15th (top) and 14th (bottom) five-year plan periods.
The yellow dotted areas represent clean energy bases, while the arrows represent cross-regional power transmission. The blue wind-turbine icons represent offshore windfarms and the red cooling tower icons represent coastal nuclear plants.
The 15th five-year plan map shows a consistent approach to the 2021-2025 period. As well as power being transmitted from west to east, China plans for more power to be sent to southern provinces from clean-energy bases in the north-west, while clean-energy bases in the north-east supply China’s eastern coast.
It also maps out “mutual assistance” schemes for power grids in neighbouring provinces.
Offshore wind power should reach 100GW by 2030, while nuclear power should rise to 110GW, according to the plan.
What does the plan signal about coal?
The increased emphasis on grid infrastructure in the draft 15th five-year plan reflects growing concerns from energy planning officials around ensuring China’s energy supply.
Ren Yuzhi, director of the NEA’s development and planning department, wrote ahead of the plan’s release that the “continuous expansion” of China’s energy system has “dramatically increased its complexity”.
He said the NEA felt there was an “urgent need” to enhance the “secure and reliable” replacement of fossil-fuel power with new energy sources, as well as to ensure the system’s “ability to absorb them”.
Meanwhile, broader concerns around energy security have heightened calls for coal capacity to remain in the system as a “ballast stone”.
The plan continues to support the “clean and efficient utilisation of fossil fuels” and does not mention either a cap or peaking timeline for coal consumption.
Xi had previously told fellow world leaders that China would “strictly control” coal-fired power and phase down coal consumption in the 15th five-year plan period.
The “geopolitical situation is increasing energy security concerns” at all levels of government, said the Institute for Global Decarbonization Progress in a note responding to the draft plan, adding that this was creating “uncertainty over coal reduction”.
Ahead of its publication, there were questions around whether the plan would set a peaking deadline for oil and coal. An article posted by state news agency Xinhua last month, examining recommendations for the plan from top policymakers, stated that coal consumption would plateau from “around 2027”, while oil would peak “around 2026”.
However, the plan does not lay out exact years by which the two fossil fuels should peak, only saying that China will “promote the peaking of coal and oil consumption”.
There are similarly no mentions of phasing out coal in general, in line with existing policy.
Nevertheless, there is a heavy emphasis on retrofitting coal-fired power plants. The plan calls for the establishment of “demonstration projects” for coal-plant retrofitting, such as through co-firing with biomass or “green ammonia”.
Such retrofitting could incentivise lower utilisation of coal plants – and thus lower emissions – if they are used to flexibly meet peaks in demand and to cover gaps in clean-energy output, instead of providing a steady and significant share of generation.
The plan also calls for officials to “fully implement low-carbon retrofitting projects for coal-chemical industries”, which have been a notable source of emissions growth in the past year.
However, the coal-chemicals sector will likely remain a key source of demand for China’s coal mining industry, with coal-to-oil and coal-to-gas bases listed as a “key area” for enhancing the country’s “security capabilities”.
Meanwhile, coal-fired boilers and industrial kilns in the paper industry, food processing and textiles should be replaced with “clean” alternatives to the equivalent of 30m tonnes of coal consumption per year, it says.
“China continues to scale up clean energy at an extraordinary pace, but the plan still avoids committing to strong measurable constraints on emissions or fossil fuel use”, says Joseph Dellatte, head of energy and climate studies at the Institut Montaigne. He adds:
“The logic remains supply-driven: deploy massive amounts of clean energy and assume emissions will eventually decline.”
How will China approach global climate governance in the next five years?
Meanwhile, clean-energy technologies continue to play a role in upgrading China’s economy, with several “new energy” sectors listed as key to its industrial policy.
Named sectors include smart EVs, “new solar cells”, new-energy storage, hydrogen and nuclear fusion energy.
“China’s clean-technology development – rather than traditional administrative climate controls – is increasingly becoming the primary driver of emissions reduction,” says ASPI’s Li. He adds that strengthening China’s clean-energy sectors means “more closely aligning Beijing’s economic ambitions with its climate objectives”.
Analysis for Carbon Brief shows that clean energy drove more than a third of China’s GDP growth in 2025, representing around 11% of China’s whole economy.
The continued support for these sectors in the draft five-year plan comes as the EU outlined its own measures intended to limit China’s hold on clean-energy industries, driven by accusations of “unfair competition” from Chinese firms.
China is unlikely to crack down on clean-tech production capacity, Dr Rebecca Nadin, director of the Centre for Geopolitics of Change at ODI Global, tells Carbon Brief. She says:
“Beijing is treating overcapacity in solar and smart EVs as a strategic choice, not a policy error…and is prepared to pour investment into these sectors to cement global market share, jobs and technological leverage.”
Dellatte echoes these comments, noting that it is “striking” that the plan “barely addresses the issue of industrial overcapacity in clean technologies”, with the focus firmly on “scaling production and deployment”.
At the same time, China is actively positioning itself to be a prominent voice in climate diplomacy and a champion of proactive climate action.
This is clear from the first line in a section on providing “global public goods”. It says:
“As a responsible major country, China will play a more active role in addressing global challenges such as climate change.”
The plan notes that China will “actively participate in and steer [引领] global climate governance”, in line with the principle of “common,but differentiated responsibilities”.
This echoes similar language from last year’s government work report, Yao tells Carbon Brief, demonstrating a “clear willingness” to guide global negotiations. But she notes that this “remains an aspiration that’s yet to be made concrete”. She adds:
“China has always favored collective leadership, so its vision of leadership is never a lone one.”
The country will “deepen south-south cooperation on climate change”, the plan says. In an earlier section on “opening up”, it also notes that China will explore “new avenues for collaboration in green development” with global partners as part of its “Belt and Road Initiative”.
China is “doubling down” on a narrative that it is a “responsible major power” and “champion of south-south climate cooperation”, Nadin says, such as by “presenting its clean‑tech exports and finance as global public goods”. She says:
“China will arrive at future COPs casting itself as the indispensable climate leader for the global south…even though its new five‑year plan still puts growth, energy security and coal ahead of faster emissions cuts at home.”
What else does the plan cover?
The impact of extreme weather – particularly floods – remains a key concern in the plan.
China must “refine” its climate adaptation framework and “enhance its resilience to climate change, particularly extreme-weather events”, it says.
China also aims to “strengthen construction of a national water network” over the next five years in order to help prevent floods and droughts.
An article published a few days before the plan in the state-run newspaper China Daily noted that, “as global warming intensifies, extreme weather events – including torrential rains, severe convective storms, and typhoons – have become more frequent, widespread and severe”.
The plan also touches on critical minerals used for low-carbon technologies. These will likely remain a geopolitical flashpoint, with China saying it will focus during the next five years on “intensifying” exploration and “establishing” a reserve for critical minerals. This reserve will focus on “scarce” energy minerals and critical minerals, as well as other “advantageous mineral resources”.
Dellatte says that this could mean the “competition in the energy transition will increasingly be about control over mineral supply chains”.
Other low-carbon policies listed in the five-year plan include expanding coverage of China’s mandatory carbon market and further developing its voluntary carbon market.
China will “strengthen monitoring and control” of non-CO2 greenhouse gases, the plan says, as well as implementing projects “targeting methane, nitrous oxide and hydrofluorocarbons” in sectors such as coal mining, agriculture and chemicals.
This will create “capacity” for reducing emissions by 30m tonnes of CO2 equivalent, it adds.
Meanwhile, China will develop rules for carbon footprint accounting and push for internationally recognised accounting standards.
It will enhance reform of power markets over the next five years and improve the trading mechanism for green electricity certificates.
It will also “promote” adoption of low-carbon lifestyles and decarbonisation of transport, as well as working to advance electrification of freight and shipping.
The post Q&A: What does China’s 15th ‘five-year plan’ mean for climate change? appeared first on Carbon Brief.
Q&A: What does China’s 15th ‘five-year plan’ mean for climate change?
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