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Amid heightened concern last winter about the security of the electricity supply across the island of Great Britain, National Grid Electricity System Operator (ESO) brought in a first-of-its-kind demand-management system. 

The Demand Flexibility Service (DFS) relied on consumers reacting to notifications from the operator to help reduce their demand and keep the island’s grid secure during times of particular strain. (The island’s grid incorporates England, Scotland and Wales, but not Northern Ireland.)

Over the course of the winter of 2022/23, the system-level impact of DFS was significant, reducing demand by 2.92 gigawatt hours (GWh) from times of grid strain, according to a recent report from the Centre for Net Zero.

This is equivalent to the electricity needed for every person in Great Britain to make a large cup of tea, it claims.

This helped ensure, it adds, that the ”lights stayed on” and reduced the need for reliance on coal-fired power stations or exceptionally expensive alternatives. Additionally, 681 tonnes of carbon dioxide (tCO2) emissions were avoided through the use of DFS.

ESO has reintroduced the service for 2023/24, with the first session taking place on 16 November.

The Q&A below examines what the service has achieved – and whether it offers value for money.

What is the ‘demand flexibility service’? 

In 2022, ESO launched its new DFS to provide an additional mechanism to support energy security over the winter. 

There was heightened concern about the potential of blackouts over the winter of 2022/23, due to the volatility in the gas market, exacerbated substantially by the Russian invasion of Ukraine earlier that year. 

As such, in its Winter Outlook report, the operator added new tools in the form of securing contingency contracts with coal-fired power plants and launching DFS. 

From 1 November 2022, DFS started to incentivise users to reduce consumption during key times, to reduce the overall demand across the system.

Households with a smart meter or business sites with half-hourly metering were eligible to sign up to the scheme and could sign up through either their supplier or a technology provider. In total, there were 31 providers that registered by the end of the DFS period in March 2023.

This was made up of 14 “domestic only”, 10 “non-domestic only” and seven “both domestic and non-domestic”.

DFS was designed so that the ESO could notify providers about the times when capacity on the grid was expected to be tight, allowing them to reach out to their customers who had signed up to the scheme. They could then opt-in to the DFS sessions and work to reduce their demand during the specified periods. 

Over the winter of 2022/23, there were 20 test events – which were used to “onboard” providers – and two live uses of DFS, where it was used to ensure there was sufficient capacity to meet demand. These sessions had a duration of 60, 90 and 120 minutes.

Across the test events, ESO established a guaranteed “acceptance price” of £3,000 per megawatt hour (/MWh) for all bids submitted by DFS providers. This was designed to offer assurance to providers.

During the live events, DFS providers presented bids at higher prices than the guaranteed acceptance price, allowing them to incentivise participants further and, therefore, provide more substantial demand reductions during times when balancing the grid was particularly challenging.

The two live events – which took place on 23 and 24 January 2023 – saw providers submit bids within the range of £3,300/MWh and £6,500/MWh, according to data from LCP Delta

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Who took part in last year’s trial of the service?

Between November and March, 1.6m households and businesses participated in DFS, according to the ESO.

Collectively, they provided ~350MW of flexibility during events, helping to avoid blackouts during periods of particular constraint on the grid.

According to a survey conducted by the system operator, a wide range of households took part in DFS. Of those surveyed, 30% had a health condition or long-term illness, 18% were tenants and 30% lived in households with three or more people. This highlighted the low barriers to participation of DFS, according to ESO. 

There were still groups that were underrepresented, including younger age groups, lower income households, renters and city residents.

According to ESO’s survey, those under the age of 45 were underrepresented in DFS participation in comparison with the British population. (Britain’s electricity system covers England, Wales and Scotland, therefore, the population of Northern Ireland was not eligible to take part in DFS.) The most pronounced underrepresentation was seen in those aged 18-19 and 20-24 years old. The most overrepresented age groups were 55-64 and 65-74.

Within the under-45 age group, women made up the majority of participants, whereas in the over-45 group men made up the majority. Overall, 54.9% of those surveyed identified as female, in comparison with 51.7% of the British population, the survey continues.

The white ethnic group was overrepresented, with 95.7% of respondents falling within the category, notes the ESO, compared to 82.7% of the British population (a 13% difference).

All other groups were underrepresented, with Asian or Aisan British the most severely so, with only 2.4% of respondents compared to 8.7% of the British population (6.3% difference).

The majority of participants took part for the financial benefits, be they savings or rewards. Of those surveyed by ESO, 76% selected this as their main motivation. 

Beyond this, 41% of households were motivated by the challenge of responding and 37% by balancing the grid. 

ESO surveyed 23,717 people (orange), as well as getting 134 to keep diaries (yellow) explaining their experience of DFS, plus interviewing 329 people (red) about their experience.
ESO surveyed 23,717 people (orange), as well as getting 134 to keep diaries (yellow) explaining their experience of DFS, plus interviewing 329 people (red) about their experience. The three groups were asked to select the reasons why they decided to sign up to DFS. Source: National Grid ESO.

The actions taken by participants to reduce demand varied, with the majority (three-in-four) shifting demand, according to the Centre for Net Zero’s research. For example, shifting the times they used high-load appliances, such as heating or ovens, by an hour, to avoid the DFS session. 

Around one-in-two participants reported “demand destruction” in at least one event, according to the research. This is where the demand is completely removed – for example, households who chose to go for a walk instead of putting on the television and did not subsequently watch an extra hour of television later to make up for it.

The Centre for Net Zero’s research found that 17% of participants manually switched off appliances, while the rest scheduled them to either come on before or after the event.

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What did the demand flexibility service achieve?

Overall, DFS was considered a success, delivering a total of 3,300MWh of electricity reduction across the 22 events, according to ESO. This is nearly enough to power 10m homes for an hour during peak times across the island of Great Britain. 

Through demand reduction, DFS is considered to have avoided a total of 681tCO2.

Great Britain was spared blackouts over the winter of 2023/24 – while services such as DFS played a role in helping to keep the grid balanced and secure during this time. Favourably warm weather, among other factors, also played a role.

Additionally, DFS provided financial benefits to participants. For example, CUB, a family-run commercial energy and utilities consultants business, introduced the CUB Reduction Reward Scheme, allowing its customers to participate in DFS. 

In a case study released by ESO, it highlighted that throughout six events, there was an average of 86 businesses taking part in each through the CUB Reduction Reward Scheme. Participants ranged from using 14,000 kilowatt hours (kwh) to 14,000,000kwh per annum. 

As of 30 January, participants had earned £34,025, with one business earning £1,726 in one event. Over these events, CUB delivered 12MWh of energy reduction, and avoided 945kg of carbon emissions.

With regard to the domestic market, 13 sessions were offered to 1.4m Octopus Energy customers over the course of last winter, via financial incentives. Overall, the company’s “Saving Sessions” resulted in a reduction in energy demand of 12-25%.

Octopus Energy’s Saving Sessions from November 2022 through to March 2023.
Octopus Energy’s Saving Sessions from November 2022 through to March 2023, showing whether it was a test or live event, the duration, incentive offered, the number of participants and the percentage of those who signed in that then opted in. Source: Centre for Net Zero.

The trial also managed to answer several questions around the potential of demand schemes and the challenges they may face.

For example, the impact of cold weather on the willingness of participants to reduce their demand was an area in need of data, with heating being one of the easier and more common energy uses to turn down during DFS sessions. 

Those who opted into Octopus’s Saving Sessions on cold winter days provided a “mean average turndown” of 0.2kW, a similar level to mild or warm days. If this was scaled to the UK’s 30m households at the same rate of participation (one-in-three), the company estimates that would equate to around 2GW of consumer flexibility on cold winter days. 

This is roughly equivalent to the entire capacity of Britain’s contingency coal power plants.

Electricity consumption by Octopus Energy customers in kWh in half-hour increments
Electricity consumption by Octopus Energy customers in kWh in half-hour increments, shown across the hours before and after the Saving Session stated, with the period in which it was active highlighted in grey. Source: Centre for Net Zero.

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Did the demand flexibility service offer value for money?

Overall, ESO paid households and businesses nearly £11m to reduce their power use during the DFS period of 2022/23. 

As such, the average cost per megawatt hour of reduced electricity was around £3,330/MWh across the 22 sessions. While this is relatively high, it is also reflective of the scarcity of the use of the service. This is not a cost paid out consistently, but only in the tightest of periods where the alternative options were expensive fossil-fuel generators.

During the same winter, some gas-fired power plants cost up to £6,000/MWh, for example.

Across the two live events, ESO paid more than £3m to suppliers, split between around £850,000 during the shorter event on Monday 23 January and £2.1m for the longer session on Tuesday 24 January.

These arguably provide a clearer picture of what this service could cost in the future, given they allow suppliers to bid what they are happy to pay as opposed to the guaranteed price offered during the test sessions.

For example, during the first live session on Monday 23 January, 400,000 customers participated and were given £3.37/kWh of electricity demand they reduced. Customers were offered £4/kWh on Tuesday 24 January, as ESO accepted a higher bid. 

By contrast, ESO’s other additional measure for the winter of 2022/23 was to contract five coal units to stay online under contingency contracts. This was estimated to cost between £340m and £395m, subject to the procurement and use of the coal.

While the coal units were “warmed” six times, according to the Centre for Net Zero’s research, they were not ultimately used. ESO paid approximately £6,000/h to the plants that were warmed, in order to synchronise them with the grid frequency.

ESO has not contracted them for the coming winter.

DFS cost approximately £10.5m in total meaning 2.7% of the capacity payments were spent on the contingency coal contracts. 

The Centre for Net Zero’s research, completed a welfare analysis to explore what the marginal social benefits of the policy were with regards to the net cost to the government. 

In doing so, it found Octopus’ Saving Sessions demonstrated a marginal value of public funds (MVPF) – which is calculated by dividing the beneficiaries’ willingness to pay by the net costs of the policy – of between 1.05 and 2.6.

This metric shows that the welfare impacts of DFS are sensitive to the extent to which demand response reduces the likelihood of “lost load”, namely, the security of the electricity supply. If it is considered to have reduced the likelihood of a blackout, the MVPF is high, with 2.6 larger than many other popular policy programs, such as housing vouchers, job training, cash transfers, and adult-health subsidies, according to the Centre for Net Zero.

The report notes that during DFS events – when the grid was particularly strained – a marginal unit of electricity would have been sourced from a carbon-intensive gas or coal-fired power plant. These would incur a “marginal private cost” of £835/MWh on average for the ESO, with a maximum of £5,500/MWh, plus the social cost of continued fossil fuel reliance.

It is a difficult balance for the operator to ensure the service offers value for money, while paying consumers enough to make participation attractive.

Lucy Yu, the Centre for Net Zero’s CEO, tells Carbon Brief:

“The DFS is one of the biggest innovations the grid has seen in years. Our analysis shows consumers can offer gigawatt-scale flexibility, at good value for public money. This value exceeds policy spending in areas such as adult education, healthcare and housing.”

According to figures from Octopus in January, the average saving for a household was 23p for each test event. Some participants saved up to £4.35 for each session. 

During the first live test, the largest savings seen by domestic users were about £8.75 for the hour.

The supplier estimates that a customer that reduced its demand by 1kWh during 25 events at an average of £4/kWh – as seen in the second live event – could save £100 over a winter.

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What will the service look like in winter 2023-24?

DFS has been reintroduced for winter 2023/24. It began on 1 November, with the first test event taking place on 16 November. The first live event has now been announced for 29 November

As with last year, ESO will run 12 incentivised test events that consumers and businesses can participate in. A guaranteed acceptance price of £3/kWh will be on offer to  suppliers, aggregators and businesses for at least six of the test events. 

According to the surveys conducted by the Centre for Net Zero, 92% of customers were “very interested” in continuing to participate in future sessions year-round.

DFS remains in a trial stage, with lessons yet to be learnt before it could be truly integrated into the ESO’s system stability services. As such, there are a number of changes made to this year’s service, including the lead time given by the ESO, changes to metering requirements and the ability for providers to make the service “opt-out” rather than “opt-in”. 

While the DFS is currently only used to reduce demand, there is also the potential that such a system could be used in the future to manage periods of high generation on the system.

For example, during a period of low demand, such as in the middle of the night, when there is high wind generation. Currently, wind generation has to be “curtailed” to protect the system if there is more generation than demand. DFS could be used to increase demand to take advantage of such periods.

Of those surveyed by the Centre for Net Zero, 81% said they were interested in using more energy to avoid curtailment.

Yu tells Carbon Brief:

“As the energy system evolves to optimise demand closer to real-time, it is important to understand the role schemes such as the DFS might play – including as an important contingency resource targeted at times and locations where it is needed most.

“In the near term, it is a critical tool that allows us to raise consumer awareness of demand response, scale flexibility behaviours and deliver meaningful value to both the grid and households, transforming the relationship between the two.”

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Analysis: Wind and solar power overtake fossil fuels in Germany for first time ever

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More of Germany’s electricity came from wind and solar power than fossil fuels for the first time ever in 2025.

Together, wind and solar power generated 225 terawatt hours (TWh) of electricity – accounting for 44% of the total in 2025 – with just 217TWh (43%) coming from fossil fuels.

Solar and onshore wind have grown rapidly under Germany’s “Energiewende” strategy over the past two decades, as the nation transitions away from both coal and nuclear power.

Renewables have recently faced mounting opposition from the far-right Alternative for Germany (AfD) party and the current coalition government has been trying to develop new gas-power plants.

Nevertheless, Carbon Brief analysis of Energy Institute data – shown in the chart below – illustrates how wind and solar have continued growing, emerging as the nation’s largest power source.

The success of renewables in Germany mirrors the EU as a whole, which also saw wind and solar overtake fossil-fuel power generation in 2025 for the first time.

“Other renewables” includes hydropower, bioenergy, geothermal and other renewable sources not otherwise stated. Source: Energy Institute Statistical Review of World Energy, 2026.

Germany has various targets in place that require a rapid expansion of wind and solar power, including cutting economy-wide emissions to net-zero by 2045.

The nation is also aiming to increase renewables’ share of electricity consumption to 80% by 2030 to achieve a “largely climate neutral” power system by 2035. It aims to decarbonise its electricity entirely once coal power has been phased out, which has a deadline of “no later than” 2038.

(The renewables targets also include electricity generated from hydropower and bioenergy. The latter produces a relatively large share of Germany’s power – roughly a tenth in 2025.)

Germany has to rely on renewables more than neighbours, such as France and the UK, to achieve its climate goals. This is due to its phaseout of nuclear power, which is a key part of the “Energiewende” strategy.

Nuclear power has long faced widespread public opposition in Germany. This year, the centre-right chancellor Friedrich Merz described the nuclear phaseout as a “strategic mistake”, but the government has ruled out a return to conventional nuclear power.

The country has an official coal phaseout date of 2038, but experts say the country is on track to eliminate coal from its power supply years earlier. This is despite some pressure to temporarily slow the transition away from coal during the recent energy crisis.

(Very few outside the AfD are calling to scrap the coal phaseout altogether, but the government will publish a review of the timelines in August.)

While coal generation has fallen quickly, even as nuclear was being phased out, some argue that coal could have been cut more quickly if nuclear had remained.

Gas-power expansion has also been framed by the government in recent years as an essential component of Germany’s transition away from coal and nuclear power, to support a renewables-heavy grid.

The current government under Merz has tried to boost gas and recently adopted a law to provide state support for new gas-fired power plants. The plan is for these plants to be converted to run on “green hydrogen” by 2045, in order to meet the climate-neutrality goal.

Germany aims to install 115 gigawatts (GW) of onshore wind by 2030 and approved a record 20.8GW of new capacity in 2025. 

Meanwhile, solar generation has reached unprecedented levels during the hot summer of 2026.

However, the government’s planned grid reforms have been criticised by the renewables industry for risking slowing down the energy transition. Under the proposals, renewables developers would only be granted automatic grid connections in areas with limited grid capacity if they waive compensation for future curtailed generation.

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Analysis: 84% of nations miss deadline to identify ‘nature-harming’ subsidies by 2025 

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Most countries failed to meet a 2025 target to identify all of their subsidies that could be “harmful” to biodiversity, according to Carbon Brief analysis.

The findings also reveal that 32 countries spend an estimated $270bn on biodiversity-harming subsidies and other incentives each year.

This is the “tip of the iceberg”, one expert notes, with “trillions” spent globally.

In 2022, almost every country in the world agreed on a set of “goals” and “targets” aiming to halt and reverse biodiversity loss by 2030.

One of these targets asked countries to identify all subsidies that damage biodiversity by 2025, before phasing out or reforming at least $500bn of these incentives by 2030.

The subsidies can be found in a range of sectors, including fossil fuels, agriculture, forestry, mining and fishing.

Just 21 countries appear to have met the 2025 goal, Carbon Brief finds, based on analysis of 134 national reports submitted to the UN Convention on Biological Diversity (CBD) by 1 July 2026.

Five of the world’s 17 megadiverse countries were among those that met the deadline.

Country progress

Carbon Brief’s analysis looks at the number of countries that have met the 2025 target to identify their use of nature-harming subsidies.

However, the metrics to determine which countries have “met” this target are not explicitly defined.

Carbon Brief included any country that says it has completed the process of identifying its subsidies. In almost every case, these countries also included a total figure for the value of those subsidies.

The analysis finds that 21 countries say they have identified their harmful subsidies, as shown in the map below (yellow). This amounts to 16% of the countries that have submitted national reports so far.

A further 11 countries, plus the EU, have provided figures for some of their subsidies, such as only those in a specific sector (dark blue).

Of the 134 national reports submitted to the CBD, 66 make reference to beginning the process (medium blue), while the remaining 68 do not (light blue). The final 62 countries party to the CBD have yet to submit a national report (light grey).

(Every country in the world participates in the CBD, except for the US and the Holy See – the governing body of the Catholic church, which is seated in Vatican City.)

Map of the world showing that 21 countries have identified all of their nature-harming subsidies
Countries that have identified all of their harmful subsidies (yellow); provided figures for some sectors (dark blue); begun the process, but not provided any numbers (medium blue); not begun the process (light blue); and not submitted a national report to the CBD (light grey). Credit: Carbon Brief analysis

The 32 countries that have identified some or all subsidies spend almost $270bn on nature-harming incentives annually, according to Carbon Brief’s analysis.

This is based on a tally of the figures for the most recent available year listed in countries’ national reports, in US dollars using conversion rates at the end of the given year and adjusted for inflation. The analysis also includes figures from other reports cited in the country submissions.

The $270bn reported in country submissions to date is “just the tip of the iceberg”, notes Eva Zabey, the chief executive of Business for Nature. The global figure could be as high as $1.8tn, according to a 2022 estimate from non-profit group, the B Team.

The figures identified by Carbon Brief are a “warning” that the “world is not moving fast enough” to tackle harmful subsidies, Zabey says, adding:

“The positive news is that some countries have shown it can be done and this should embolden others to follow suit…Subsidy reform should be treated as an economic necessity, not an environmental checklist.”

Harmful subsidies are expected to be among the key priorities at the upcoming COP17 UN nature summit, being held in Armenia in October 2026.

Subsidy target

There is no single definition of a “harmful” subsidy. (See: ‘Harmful’ subsidies.) 

The aim to identify these subsidies stems from target 18 of the Kunming-Montreal Global Biodiversity Framework (GBF) – the global agreement containing a series of goals and targets for nature.

Target 18.
Target 18 of the Kunming-Montreal Global Biodiversity Framework. Credit: UN CBD (2022)

Target 18 calls on countries to identify subsidies and other incentives that are harmful for biodiversity by 2025.

It also says that nations should “eliminate, phase out or reform” these subsidies in a “proportionate” way, reducing them by at least $500bn per year by 2030.

It says countries should first target the “most harmful” incentives, while simultaneously scaling up positive incentives for nature.

All 2030 targets in the GBF are global – with countries each expected to outline how they will contribute nationally. So far, 169 countries have submitted these national targets.

Only 38% of countries addressed the 2025 aim to identify harmful subsidies in their national targets “to some extent”, according to a draft version of an upcoming progress report.

Countries’ national reports do not “provide a sufficient basis to determine” whether the 2025 milestone was met, says the report, but available evidence “suggests” that it was not.  

‘Harmful’ subsidies  

There is no universally agreed-upon definition of a “biodiversity-harmful subsidy” – or how it differs from an environmentally harmful subsidy.

In general, “harmful” environmental subsidies impact humans’ surroundings, whereas those harmful to biodiversity directly affect species and ecosystems. Paul Elton, a PhD candidate at the Australian National University, tells Carbon Brief:

“If you were to do a study that focused on biodiversity-harmful subsidies versus one that focused on environmentally-harmful subsidies, there’d be a Venn diagram where a large percentage would overlap.”

A 2022 working paper on identifying subsidies harmful to biodiversity published by the Organisation for Economic Co-operation and Development (OECD) depicted biodiversity as a subset of the environment, with climate and air falling outside the scope of “biodiversity”.

However, the report also noted that climate change is one of the five key drivers of biodiversity loss, adding:

“As such, subsidies that lead to larger greenhouse gas emissions, for example, will also indirectly impact on biodiversity.”

Distinction between the “environment” and “biodiversity”, according to an oft-cited working paper on identifying and assessing biodiversity-harming subsidies. Credit: OECD (2022)
Distinction between the “environment” and “biodiversity”, according to an oft-cited working paper on identifying and assessing biodiversity-harming subsidies. Credit: OECD (2022)

Prof Jessica Dempsey, a political ecologist at the University of British Columbia, tells Carbon Brief that she would “absolutely” consider fossil-fuel subsidies to be biodiversity-harming – not only as a driver of climate change, but also because the extraction of fossil fuels can cause localised harms to biodiversity. She adds:

“I do think probably it is true that all harmful subsidies are not necessarily biodiversity-related. Some care in that is important, but subsidies to the sectors that are known drivers of biodiversity loss feel very obvious to me.”

Biodiversity-harming subsidies can be either direct or indirect.

Direct subsidies refer to government expenditures that go towards a project that harms nature, such as construction of a new gas-fired power plant. Indirect subsidies could include tax exemptions that encourage a certain behaviour, such as lower tax rates on fuels for agricultural machinery.

Subsidies in agriculture, fishery and energy sectors are most commonly deemed “harmful”, but damage can also be caused by support for forestry, infrastructure, transport, construction, water and other sectors.

One recent estimate of the global total of biodiversity-harming subsidies put the figure at $1.7-3.2tn annually. An estimate of environmentally harmful subsidies put the figure at $2.6tn.

Elton tells Carbon Brief:

“It’s useful to contextualise the $500bn ambition of the GBF against those global estimates of how big [the total] actually could be, because that underscores the fact that so far, you’ve only got a subset of nations reporting about $250bn by your analysis, which is only half of the [phase-out target].

“It’s a significant lack of accountability.”

The chart below compares the $2.6bn estimated value of harmful subsidies to the $500bn phase-out target set in the GBF and the value of the subsidies identified so far in national reports.

Chart showing biodiversity harming subsidies
Comparison of the harmful subsidies identified by countries in their national reports (light blue), the phase-out target for subsidies outlined in the GBF (medium blue) and a global estimate of environmentally harmful subsidies (dark blue). Credit: Carbon Brief analysis

Sectoral breakdown

Many subsidies can have both negative and positive impacts on biodiversity, according to the 2022 OECD working paper.

A subsidy on constructing dams for new hydropower can harm local biodiversity by disrupting water flows and flooding certain areas, for example. But it also reduces fossil-fuel dependence, lowering emissions and leading to a decrease in global warming.

Ronald Steenblik, a subsidies expert and co-author of the report estimating $2.6bn of harmful subsidies, tells Carbon Brief:

“What’s harmful is somewhat in the eye of the beholder.”

Most experts agree that a few sectors receive the bulk of the world’s biodiversity-harming subsidies: fossil fuels, agriculture and infrastructure, with much smaller contributions from other sectors, such as forestry, mining and fisheries.

Of the subsidies reported to the CBD, almost half were for the fossil-fuel sector, and around one-quarter for agriculture and fishing.

Chart showing that almost half of nature-harming subsidies go towards fossil fuels
Sectoral breakdown of identified subsidies. “Multiple” means a country either did not distinguish between sectors or reported one number encompassing several sectors. “Other” refers to specific sectors not named in the chart. Credit: Carbon Brief analysis.

Dempsey says it is “surprising” that mining “didn’t show up” in these figures. (Of the 32 countries that provided subsidy data, only one mentioned mining as an industry that received harmful subsidies.)

Limitations

One limitation of Carbon Brief’s analysis is the lack of standardisation of subsidy data.

The methodology underlying the national reports lists several definitions of environmentally harmful subsidies, adding:

“[T]here is no standardised, globally agreed methodology for assessing the value of subsidies…nor is there a single global dataset providing this information.”

It adds that it is “important” for countries to identify harmful subsidies “within their national context”. Steenblik says:

“When you get down into the details, you can have lots of arguments of where you draw the line. And, so, the big question on this spreadsheet is where countries drew that line.”

For example, China’s national report says the country has already identified all biodiversity-harming subsidies and reformed them entirely.

In Australia, a 2026 study – led by Elton from Australian National University – identified biodiversity-harmful subsidies worth $26.3bn over 2022-23, a number that amounts to just over 1% of the country’s GDP.

However, in its national report, Australia identified $155m worth of subsidies, largely in the agricultural sector. (The national report says that the identified agricultural subsidies are those that are “potentially most harmful to the environment”.)

Elton tells Carbon Brief that this discrepancy underscores the necessity of an independent assessment of harmful subsidies, “rather than this just being seen as a tick-the-box reporting exercise by officials in the environment department”.

When it comes to actually phasing out harmful subsidies, Dempsey says, focusing on the quality of the subsidy – and who benefits from it – is just as important as focusing on the numbers. She adds:

“If we don’t take this lens of understanding the beneficiaries and we only focus on the [numbers], we really risk having policy changes that then lead to increased affordability problems for everyday working people, and backlash.”

Methodology

Carbon Brief analysed national reports submitted to the CBD by 134 parties – 133 countries and the EU – to assess which ones had identified all of their biodiversity-harmful subsidies and therefore met the 2025 deadline.

The reports were submitted in 2026, with the analysis including those submitted by 1 July 2026.

The figures for each country can be found in this spreadsheet. More than three-quarters of reports did not list any figures.

To get the full tally for the amount listed, Carbon Brief used the figures for 2025 (or the nearest available year) and converted the local currency into US dollars, based on conversion rates in the given year using the currency exchange rates calculator from the US Treasury.

These figures were then adjusted for inflation to the year 2025. Numbers were rounded to the nearest $1,000.

In total, this amounted to $269,856,769,000 in subsidies across 32 countries.

Many countries listed the sector that each subsidy is going towards. Carbon Brief standardised these inputs using the following categories:

  • Agriculture and fishing
  • Energy
  • Forestry  
  • Fossil fuels 
  • Infrastructure
  • Transport 
  • Other
  • Multiple sectors

“Multiple sectors” was assigned when a country provided only a partial sectoral breakdown of their subsidies or none at all.

“Other” was selected to encompass sectors that were named more infrequently, including water, mining, tourism and construction.

The designations employed and the presentation of the material on the map in this article do not imply the expression of any opinion whatsoever on the part of Carbon Brief concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

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Cook Government must recognise risks posed by Woodside’s Scott Reef drilling plans

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SYDNEY, Monday 27 July 2026 — In response to an announcement that Woodside’s Browse to North West Shelf (Browse) Project was declared a State Significant Project by the WA Government, the following comments can be attributed to Senior Campaigner at Greenpeace Australia Pacific, Hannah Schuch:

“The WA Government must not ignore the significant risks clearly associated with Woodside’s plans to drill for gas at the pristine Scott Reef — to endangered marine life, our oceans, and our climate — all of which are valued and relied upon by Western Australians.

“The WA Environmental Protection Authority has already found Woodside’s plans to drill at Scott Reef would have unacceptable impacts on the environment without considering the climate impacts of 1.6 billion tonnes of carbon pollution associated with this disastrous proposal.

“Woodside’s gas drilling plans, including seismic blasting and carbon dumping in the heart of a precious ecosystem, pose potentially fatal risks to pygmy blue whales and genetically unique green sea turtles, and could cause a catastrophic oil spill.

“If the WA and federal governments are concerned with the prosperity of WA, they must reject Woodside’s nature and climate-wrecking proposal to drill for gas at Scott Reef.”

—ENDS—

High res images and footage of Scott Reef can be found here.

For more information or to arrange an interview, please contact Emma Sangalli on 0431 513 465 or emma.sangalli@greenpeace.org

Cook Government must recognise risks posed by Woodside’s Scott Reef drilling plans

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