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At COP28 in Dubai, Carbon Brief’s Anika Patel spoke with Prof Pan Jiahua, vice-chair of the national expert panel on climate change of China, about his ideas for how to move to a zero-carbon future.

This interview covers a wide range of topics, including China’s stance on fossil fuels, the concept of an “ecological civilisation”, the usefulness of a global “loss-and-damage fund”, and prospects for distributed solar and power market reform in China. It is transcribed in full below, following a summary of key quotes.

China’s national expert committee on climate change, of which Prof Pan is vice-chair, is an advisory body under the national leaders group on climate change, energy-saving and emissions reduction.

He is also a member of the Chinese Academy of Social Sciences and director of its Research Center for Sustainable Development, as well as director of Beijing University of Technology’s Institute of Eco-Civilization Studies and a member of the China Carbon Neutral Fifty Forum.

  • On the philosophy ofecological civilisation’: “Human beings, for their own benefit – they ignored the benefit of nature. The welfare of nature. We expose nature, we deplete our natural resources…[Under ecological civilisation] the basic idea [is] that [if we can achieve] harmony with nature [and] harmony among our nations, then we can go long into the future.”
  • On the success of UN climate summits: “COP is the only thing that [has lasted] over 30 years…We have different views, different arguments, different interests but, all in all, we’ve come a long way…we agreed the Paris targets – in 1990 nobody would believe that [was possible].”
  • On the ‘loss-and-damage fund’: “Losses and damages should be compensated, but not in a way that we divert our energy and resources for [the sake of] compensation. We should use all our energy, resources, spirits – everything – for the zero-carbon transition.”
  • On the ‘climate paradox’: “If you divert the limited resources for compensating losses and damages, then the zero-carbon transition would be delayed. And if you delay such a transition, there will be more and more losses and damages. I call this the climate paradox.”
  • On tripling renewable energy: “Tripling renewable energy is not enough. Why are we only tripling? Why not more and more, the more the better. Because look at China – [we] doubled and doubled and doubled [our renewable energy] all the time. This year we doubled installed capacity over the last year. Why shouldn’t we do more than just tripling?”
  • On replacing energy infrastructure: “Renewables would not require a huge amount of investment in infrastructure. Fossil fuels, coal electricity generation – the investment is very capital intensive…right? Waste of money.”
  • On subsidies and industrial policy: “Like a plant – in the very beginning when it’s a seed then you need to take care of it. But when it grows and becomes mature, then it can stand on its own and be competitive.”
  • On an alternative to a centralised electricity grid: “I use the term ‘prosumerism’. Production, consumption and storage all in one, right? You do not require a very capital intensive power grid.…And also, this is consumer sovereignty – when you have your own system, you have a say and then…you are not totally reliant on the power grid.”
  • On western suspicion: “Why did China suddenly become number one in zero-carbon renewables? It’s simply because the United States and Europe used anti-dumping subsidies and section 301 investigations in 2010. Then the Chinese competitive products, solar panels, were not able to go to the world market, so we thought we should…install everything inside of China and immediately China became number one in the world. Now you see the United States and Europe again say ‘no, it’s [a question of] supply chain security’. Right? This is really self-conflicting. On one hand they say ‘climate security’, on the other they say their ‘own security’.”
  • On phasing out fossil fuels: “We want to have everything competitive enough to phase out fossil fuels, through the market process. Not command and control.”
  • On abating fossil fuels: “I think that abated fossil fuels is a false statement. Because abated is not compatible, they have no competitiveness. When you abate it, it is more expensive. You think the consumers are silly? They will simply vote for competitive[ly priced] electricity.”
  • On the future of fossil fuels: “Fossil fuels are fossils. They are a thing of the past.”
  • On the ‘global stocktake’ negotiations: “[We talk about] responsibility sharing, carbon emissions reduction. But everybody will say ‘No, I will not [accept] any limits. You want to limit me, I want to do more.’ This is human psychology, right?”
  • On the challenges of power market reform: “Only the monopoly people will [call for] ‘reform’, and through reform they gain more power, they gain more monopoly. The prosumerism system will destroy such monopolies.”
  • On the urgency of ‘global boiling’: “Global warming is not global warming, it’s global boiling…Renewables are good for welfare, for wellbeing, for growing the economy, for a better environment. It’s for everybody and for the future. Fossil fuels are not for the future.”
Prof. Pan Jiahua and Anika Patel at COP28 in Dubai, UAE.
Prof Pan Jiahua and Anika Patel at COP28 in Dubai, UAE. Credit: Liang Rui

Carbon Brief: If you don’t mind, I’d like to jump straight in. I read a lot about your work on defining the concept of an ecological civilisation, which is a concept that’s not very well understood outside China. In your previous work, you’ve described it as realising harmony between humans and nature in contrast to industrial civilisation. Could you give an overview of what an ecological civilisation is and how this concept has evolved?

Pan Jiahua: Well, from [the beginning of] human civilisation, from primitive agrarian society, human beings have relied somewhat completely on nature. The ability to live more comfortably was very limited and then, with technological innovation and the industrial revolution, we have entered the new era: the industrial stage. A sort of industrial civilisation.

Under industrial civilisation, we have an ethical principle, which is utilitarian. Measurement of happiness in human beings – we would like to be happy – and how to measure happiness? Then the British philosophers, they invented the idea of utilitarianism, which means that, once you have some sort of self-interest, self-achievement or self-realisation, then you are happy. And then happy, you need some sort of measurement. That is utilitarianism, everything is useful, everything brings you benefits, then you would be happier, right? This is utilitarian. And then the measurement in economic terminology, that is utility right? Everything has a utility and then that brings happiness to human beings. So that is utilitarianism, and then when there is no utility, then there is nothing to bring you happiness.

So this is the philosophy, the ethical foundation or ethical principle. And let’s put it another way: because of this ethical principle, that means that everybody tries to optimise his own utility. At the same time, when he maximises his own utility, he tries to provide services to other people and then the social welfare, social wellbeing in total is further improved, right? So this is the whole idea of the industrial revolution and industrialisation, that everybody would benefit.

But now, because human beings, for their own benefit – they ignored the benefit of nature. The welfare of nature. We expose nature, we deplete our natural resources, you know? And then nature is depleted and nature is destroyed, damaged, lost. And then we found that: “Oh my god, this is not sustainable.” We need to change back our principle, and not be utilitarian. We need to have something in harmony with nature, right?

Now, when we talk about security, right? Under an industrial utilitarian principle, security just [means] your own security – like the United States, like Donald Trump saying “America first”. The others, they are nobody, just America first. Others are secondary or tertiary or not important at all, only the United States is the most important. Right? Let’s get a slogan ‘America First’, so the others are not important and now it is the same. They talk about national security, their own security. The others, they don’t care. Like Russia’s own security. The others’ security is not on their agenda, right? So this is utilitarianism, this is self-interest. [Under the concept of ecological civilisation], security is not only for one but for all, for everybody, for man and nature.

CB: And does this include energy security?

PJH: Of course, energy security is one of many securities. So we need to understand security through a new mentality. This mentality has security for all. All the securities are important and should be treated equally, not that one security is superior to the others, all securities are important, should be treated equally, right? So this is harmony between man and nature. That means that not only in the United States, Russia, China, other developing countries – they should be treated equally. Your security, Russian security, Chinese security, all the securities should be treated at a similar level, as equally important. So this is a harmonious society, a harmonious world, harmonious human beings. Otherwise just your own security, the others’ security, they are not secure, and then how can they be guaranteed?

So this is the logic, and then, human beings are part of society, we are part of [the community of life on] Earth. Human beings are all one race. We have so many other species. Other species should also be treated equally. Their security, the plants, the animals and all the other forms of life. They should be treated equally, their security, not only human beings’ security, the security of nature, security of better diversity. So, this is all the securities, man and nature in harmony, living in harmony with nature. This is the principle. This principle is different from utilitarianism. That means on Earth we all are one community, an Earth community, a life community, we share our own planet, we share our future, not only one nation, one race, but everybody – not only [the] current generation, but future generations as well. So this is the basic idea that [if we can achieve] harmony with nature [and] harmony among our nations, then we can go long into the future. Otherwise, there’s conflicts among our nations, conflicts among culture, and then conflicts between man and nature. And then we will not have a future.

CB: You’ve actually teed up my next question really well. Given these hopes for harmony between different countries and harmony between man and nature, do you see the seeds of harmony at COP28?

PJH: I think that COP is the only thing that [has lasted] over 30 years. In 1990, when the United Nations created the intergovernmental negotiation committee, which resulted in the UNFCCC –  this was agreed in 1992, and then in 1994 it came into force. This is the only one that lasts so long. And we have different views, different arguments, different interests but, all in all, we’ve come a long way, and now we come together and we agreed the Paris targets – in 1990 nobody would believe that [was possible]. “Oh no, global warming, that’s not my business, that’s something the rich guys should do, not us poor guys.” Right? And then at Copenhagen, when the 2C target was included in the Copenhagen Accord, that was no success at all. 

And then, only five or six years later in 2015, we successfully completed the Paris Agreement. Not only 2C but 1.5C as well. And now step by step we come to a consensus. 1.5C should be the target and all our efforts should be focused on complying with 1.5C, and that’s the target. I think that’s why, in the UK for COP26 in Glasgow, [we had] 1.5C and then last year, at COP27, 1.5C was reiterated and reaffirmed, and this year [2023] I think that we should have no dissenting voices, right? So this is a great achievement and that means that all human beings can reach a consensus and can go further and further continuously. In the past, we would take a step forward and then go backward. And now at the climate conferences, we always go forward and make progress all the time. So this is really great.

But now I do have a different view. That is the global stocktake. I think that this is necessary, but [within the] global stocktake there are quite a few that are on a set track – [will they] derail or progress?

One is the “loss-and-damage fund”. Some people say that, okay, the climate morale requires the most vulnerable nations to be compensated for climate damages and climate losses. When on the first sight, it is reasonable, it is based on climate morale because they are not at any fault [for climate change] and they are suffering, so they should be compensated. I have a different view. Losses and damages should be compensated, but not in a way that we divert our energy and resources for [the sake of] compensation. We should use all our energy, resources, spirits – everything – for the zero-carbon transition. Because if you divert the limited resources for compensating losses and damages, then the zero-carbon transition would be delayed. And if you delay such a transition, there will be more and more losses and damages. I call this the climate paradox. The paradox of climate and morale.

CB: So is it a battle between short-term and long-term thinking?

PJH: No, it’s not short-term and long-term. You know, the mentality is not right. The mentality is that the focus should be zero-carbon transition. Because if you spend your time, resources, energy, negotiating the losses and damages fund – who suffers and who should pay and how the resources should be allocated – this is a waste of resources and a waste of time. Instead, we should focus our attention on zero-carbon transformation. Everything should be zero-carbon. All the people, all the countries, all the parties, all the resources: zero-carbon. And then, in the future, we would minimise our losses and damages. Otherwise, we will divert limited resources and then we will not be able to concentrate our efforts on zero-carbon transformation. So this is the mentality. I think that [the purpose of the] loss and damages [should] not be for compensation but for zero-carbon transition, zero-carbon transformation, zero carbon development.

Now if we see zero-carbon development, it is high quality. For instance, solar energy. Instead of compensation for losses and damages, you install solar panels and then you have energy. That is well-being, that is income, that is ability to develop, instead of some sort of imaginary losses and damages. Right?

CB: A critic might say, firstly countries are pledging to triple global renewables – so there is still focus on mitigation – but they might also say that countries that are seeing their infrastructure destroyed, for example through conflict, have the opportunity to develop new low-carbon infrastructure.

PJH: This is wrong. For one thing, tripling renewable energy is not enough. Why are we only tripling? Why not more and more, the more the better. Because look at China – [we] doubled and doubled and doubled [our renewable energy] all the time. This year we doubled installed capacity over the last year. Why shouldn’t we do more than just tripling? Insufficient, not enough, we should do more and more and more and more, not only tripling, it is not enough.

And the second thing: when you talk about replacing energy infrastructure. Renewables would not require a huge amount of investment in infrastructure. Fossil fuels, coal electricity generation – the investment is very capital intensive. It would require investment of a huge amount of money for construction of the thermal power plants, it would require a huge amount of investment into the power grid and distribution. Right? Waste of money.

If you go to zero-carbon solar panels on top of your roof, you have your electricity. And then when it’s intermittent, you see [we have] power batteries, which are so cheap. You should go to China to have a look at power batteries – 20 years ago, who would have imagined that electric vehicles would be competitive. Even three years ago nobody [would have thought so]. And now you see, [they are] so competitive.

CB: That’s so true, in my Beijing apartment, we didn’t have solar panels, but we did have EV charging points.

PJH: Right? So that means the infrastructure, everything is under your own control, you will not be reliant on capitalists. So that is the difference, right? Infrastructure. That’s why I say the “loss-and-damages fund” does nothing. Just zero-carbon transition, zero-carbon energy, zero-carbon development, zero-carbon welfare, zero-carbon well-being.

CB: To take China as an example, do you think that there’s more public consciousness around zero-carbon development? EVs makes sense because they were subsidised until recently –

PJH: They’re not subsidised any more. But you’re right, in the past it was. Everything, at the very beginning, was. Just like how when new babies are born, you should take care of them. That’s true for everything new. That’s natural, like a plant – in the very beginning when it’s a seed then you need to take care of it. But when it grows and becomes mature, then it can stand on its own and be competitive.

CB: So then, from the consumer’s point of view, are people interested in solar panels on their rooftops, recycling, things like that?

I think that this [consumer-based approach] is comprehensive and is inclusive. Everybody can contribute, to zero-carbon, to plastics, to energy, right? If you reuse materials, then you will reduce emissions. You would delay the depletion of fossil fuels. Right? So this is one of the approaches. All approaches combined leads to consensus, which is a Chinese value.

Renewables are competitive, electrical vehicles are competitive and batteries have huge potential, and everybody has high expectations that these batteries would become more and more competitive, and then every household, every school can be an independent unit. I call it “prosumerism”. Production of solar and [wind] turbines fuels generation of electricity, that’s production right? And consumption is kitchen utensils, heat pumps, air conditioning, light, everything – consumption. And then you have your storage – power batteries, right? Because of the intermittency of solar, the challenges can be resolved through power battery storage.

So I use the term “prosumerism”. Production, consumption and storage all in one, right? You do not require a very capital intensive power grid. That’s very impressive. And also, this is consumer sovereignty – when you have your own system, you have a say and then…you are not totally reliant on the power grid. If [the grid operators] say something is wrong, then you have no control, if they increase the price, then you have to accept it, you have no argument, everything is under their control. With prosumerism, everything is under your own control. I call it consumer sovereignty.

So why should developing countries spend money and waste money on the power grid? Just [adopt] an independent prosumerist system.

CB: I think the EU and the US now recognise they need to catch up with China’s solar industry, and we see them recognising the benefits of nurturing their “baby” industries –

PJH: Let me tell you, the EU and the United States, they always say one thing and do another, they’re very contradictory. Why did China suddenly become number one in zero-carbon renewables? It’s simply because the United States and Europe used anti-dumping subsidies and section 301 investigations in 2010. Then the Chinese competitive products, solar panels, were not able to go to the world market, so we thought we should do everything ourselves – then suddenly we should install everything inside of China and immediately China became number one in the world. Now you see the United States and Europe again say “no, it’s [a question of] supply chain security”. Right? This is really self-conflicting. On one hand they say “climate security”, on the other they say their “own security”. They don’t care about others, they don’t care about the climate. Because Chinese products are the most competitive in the world. If they are competitive, then everybody gains the lowest cost for installation of solar and wind.

CB: That’s very valid from a consumer point of view. I think everyone recognises that China is growing its renewable capacity at such a high rate, but can it sustain that indefinitely? Or will renewable energy eventually plateau? And at what point will it plateau?

PJH: I think that this is a good question. You know, for everything we have a process of very, very slow progress and then, suddenly, we have acceleration and we go to maturity. Once you get to maturity, you do not [need as much support], because, [like] human beings…once you are big enough, you do not require too much to eat, you do not require more food, right?

It’s the same, when zero-carbon energy is sufficient to meet your demand, that is enough. You do not need to produce more for nothing, for wasting, right? So that answers your question, that is when we have sufficient capacity, then there’s no need to produce more for China. But we do have [to have] such capacity, [because] we need renewables. We do have to have new technologies, right? It’s progress for China.

Now I think that we are developing very fast, we want to have everything competitive enough to phase out fossil fuels, through the market process. Not command and control. Use market forces to phase out fossil fuels because now, you see solar electricity, wind electricity, it’s only a fraction of coal-fired electricity, that’s still competitive. And now the intermittency challenge is resolved through storage, because what we need is energy services. We do not require carbon dioxide. Carbon dioxide is nothing.

CB: To clarify, you’re not talking about phasing out unabated fossil fuels, you’re talking about phasing out all fossil fuels?

PJH: I think that abated fossil fuels is a false statement. Because abated is not compatible, they have no competitiveness. When you abate it, it is more expensive. You think the consumers are silly? They will simply vote for competitive[ly priced] electricity. Right? So, I think that abated fossil fuels is a false statement. It does not stand. You know what I mean?

It is really a silly statement. I’ll give you an example – gasoline automobiles. Nowadays in China, you see the young people, who cares to buy [gasoline vehicles]? You have no market at all, nobody cares, nobody buys. Purely electric vehicles – that’s the market. Gasoline vehicles, no matter if they are ‘abated’ or ‘unabated’ – nobody cares. This is one illustrative example. So, the [idea of] abated fossil fuels really is nonsense. Nonsense.

CB: You mean that both the idea of unabated and abated fossil fuels are nonsense?

PJH: Both. Zero-carbon renewables are so competitive. They simply bring more employment, more revenue, better health and wellbeing. Right? And they give zero-carbon emissions. There are multiple wins.

CB: We’ve seen reports of particularly local governments building more coal capacity, perhaps to boost local economic growth. What do you think it would take –

PJH: You are right. In all societies, different people and different groups have different interests. For fossil fuels, in the past they were so powerful. They want to keep their power, they want to keep their influence, they want to keep their monopoly. It’s understandable. I don’t care at all – “okay, you do it”. But the next day, you guys realised it was wrong.

So I don’t care at all, [even though] so many people say in China local governments and state power companies are investing a huge amount in coal power. Never mind. They will be phased out automatically through the market. As I said, it is not command and control [that will drive the energy transition]. It’s market forces. It’s market power. Believe in market power.

CB: I heard someone make the argument that, as China tried to control the impact that the Covid-19 outbreak had on the economy, that coal interest groups may have lost some of their power and ‘new energy’ interest groups may have gained some power. Would you agree?

PJH: Well, we really don’t need to worry about this. The coal and fossil fuels industries are very powerful – state-owned and state-dominated. Very powerful. But I think “Okay, you are powerful. But, the sooner solar is [widely adopted], everybody can do it themselves, then we do not have to rely on them. We can let them be.” No matter how powerful they are today, I have no confidence that they will continue to hold a monopoly in the future, like the automobile sector. You know, in China automobile companies were state-owned companies, and so powerful in the past.

Now the evidence shows that fossil fuels are fossils. They are a thing of the past, they have no future. That’s why I think the global stocktake at COP28, the direction is wrong. We say “Oh the emissions reduction gap.” The gap is nothing.

CB: So what language do you expect to see out of the global stocktake?

PJH: The current language is wrong. [We talk about] responsibility sharing, carbon emissions reduction. But everybody will say “No, I will not [accept] any limits. You want to limit me, I want to do more.” This is human psychology, right? And so you say “No limits, you just do what you can.”

Zero-carbon renewable energy will bring employment, growth of the economy, wellbeing and a better environment. One example is electric vehicles: 100 kilometres (km) of drive, in China’s case, requires 12 kilowatt-hours (kWh) of electricity. 1 kWh of electricity, if you use solar together with power storage, would cost four, or at most five, US cents. Only five cents. That means that, less than one dollar – maybe 60 cents – will give you 100km distance, right? Using gasoline costs 10 times more. Consumers have the choice, it’s as simple as that.

If everybody knows that, who would say “Oh I want more fossil fuels, I want more emissions”? Emissions [would be] nothing, nobody [would need to] care about emissions. So I think that we should go in the right direction. Renewables, zero-carbon, that’s the right direction. Renewables, power batteries, electric vehicles, heat pumps. All of these are [good] for development, for quality of growth, for quality of living. That is the right direction, instead of [focusing on] “limit, limit, reduction, reduction”. Psychologically, nobody would accept limits. So that’s the logic – for growth, for the environment, for better wellbeing, that’s the logic.

CB: Will this be accelerated by expected reforms to the power spot market?

PJH: The power spot market, that’s also what the monopoly people will say. Right? And then if we [adopt the] prosumerism system, there’s no need to reform, right? We have millions and billions of [sources for] prosumerism. One household is a prosumerist unit. The market has nothing to do with the individual prosumerist system. Right?

So only the monopoly people will [call for] “reform”, and through reform they gain more power, they gain more monopoly. The prosumerism system will destroy such monopolies. I have my own system, I consume the electricity I generate, I can have everything stored in my own battery and I drive my electric vehicle. I have an independent, self-sufficient system. With monopolies – like the oil companies – the price is so volatile, because they want it to be volatile, so they can monopolise more and they can control the price. Now with electric vehicles, the oil companies are not able to control the drivers. Reform has nothing to do with it.

CB: Moving towards a zero-carbon society?

PJH: Exactly, that’s why [we are advocating for] the prosumerism system…we are going to do it inside China and then we’re going to introduce it to the world. We see a zero-carbon energy prosumerism system as a solution to a carbon neutral world. And then, in the prosumerist system, all the oil companies, all the fossil fuels – they are nobody, they are nothing. Consumers, households, they won’t care [about the fate of these companies]. That’s the solution, instead of price reform – that’s really the wrong direction. I am very confident that we have a solution, that’s the zero-carbon prosumerism system.

CB: Thank you professor. And, for my last question: do you talk to your friends and family about climate change?

PJH: Of course! Global warming is not global warming, it’s global boiling. We cannot stand, our biodiversity cannot stand, our future will not be able to sustain. So we have a solution – that’s renewables, and just renewables. Renewables are good for welfare, for wellbeing, for growing the economy, for a better environment. It’s for everybody and for the future. Fossil fuels are not for the future.

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The Carbon Brief Interview: Prof Pan Jiahua

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Climate Change

Will the EU finally make waste pay for its growing carbon footprint?

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Janek Vahk is a circular economy and sustainability expert working to accelerate Europe’s transition to a zero-waste society. He is the zero-pollution policy manager at Zero Waste Europe.

By the end of July, the European Commission must decide whether to include municipal waste incineration in the EU Emissions Trading System. It may sound technical, but the decision will test the credibility of Europe’s climate leadership.

At a time when carbon markets are expanding worldwide and governments are under pressure to close loopholes, refuse incineration has become a growing blind spot in European climate policy.

Since 1990, emissions from the sector have roughly doubled. Today, garbage incinerators release tens of millions of metric tons of carbon dioxide each year, much of it from fossil fuel-based plastics. Yet unlike power plants, cement kilns or steel mills, incinerators do not pay for those emissions under the EU’s flagship carbon-pricing system.

If Europe is serious about reaching climate neutrality by 2050, this anomaly must be tackled.

    Across several member states, waste-to-energy capacity is still expanding. These plants are built to operate for 30 to 40 years. At the same time, Europe has committed to reducing waste, increasing recycling and building a circular economy. The contradiction is obvious.

    Incinerators require a steady stream of residual waste to remain financially viable. That creates structural tension with prevention and recycling targets. When infrastructure depends on waste, waste becomes something to secure rather than to reduce.

    Excluding incineration from carbon pricing deepens that distortion. It makes burning comparatively cheaper than recycling, despite the climate cost of combusting fossil-based materials.

    Including the sector in the EU Emissions Trading System (EU ETS) would restore a basic principle: the polluter pays.

    Policy patchwork

    Europe would not be starting from scratch. The Netherlands and Norway already apply national carbon levies to waste incineration. Denmark and Sweden price most waste-to-energy emissions under the EU system, while Germany covers the sector through its national emissions trading scheme.

    Britain has announced it will bring municipal waste incineration into its ETS from 2028.

    These examples demonstrate that pricing emissions from waste is both feasible and politically workable. But fragmented national approaches risk distorting the single market and encouraging cross-border waste shipments driven by regulatory differences rather than environmental logic.

    An EU-wide approach would create consistency and provide long-term certainty for investors.

    Regulatory blind spot

    Carbon pricing has already reshaped Europe’s power sector. As allowance prices rose, coal declined rapidly and investment shifted toward renewables. Industry is now responding to stronger carbon signals with electrification and efficiency measures.

    Applying that logic to waste would change behaviour across the value chain. It would incentivise better sorting, more plastic recycling and upstream waste prevention. It would strengthen the economics of reuse and circular business models that cut emissions before waste even exists.

    Without a carbon price, incineration remains a regulatory blind spot. With one, climate and resource policy finally align.

    The timing matters beyond Europe. Carbon markets are spreading, from China’s national ETS to emerging schemes in other major economies. If the EU leaves a fast-growing emissions source outside its own system, it weakens its position as a standard setter in global carbon governance.

    Roadmap launched to restart deadlocked UN plastics treaty talks

    At the same time, landfills are facing stricter methane controls under updated EU rules. Tightening methane standards while leaving incineration outside the carbon price risks shifting emissions rather than reducing them.

    This is not simply about waste management. It is about consistency in climate policy.

    Europe has expanded its carbon market to maritime transport and introduced a carbon border adjustment mechanism. Leaving municipal waste incineration untouched would sit uneasily with that ambition.

    By July, the Commission has a clear choice to make. Close the loophole and confirm that every significant source of fossil carbon must contribute to decarbonisation. Or explain why burning fossil-based waste should remain the exception in Europe’s climate rulebook.

    If carbon markets are meant to drive systemic change, they cannot stop at the incinerator gate.

    The post Will the EU finally make waste pay for its growing carbon footprint? appeared first on Climate Home News.

    Will the EU finally make waste pay for its growing carbon footprint?

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    Climate Change

    Carbon Brief Quiz 2026: Picture Round 1 and 2

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    All answers will need to be submitted via the Google form by the end of the half-time break

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    Carbon Brief Quiz 2026: Picture Round 1 and 2

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    Climate Change

    Landmark deal to share Chile’s lithium windfall fractures Indigenous communities

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    Rudecindo Espíndola’s family has been growing corn, figs and other crops for generations in the Soncor Valley in northern Chile, an oasis of green orchards in one of the driest places on Earth the Atacama desert.

    Perched nearly 2,500 metres above sea level, his village, Toconao, means “lost corner” in the Kunza language of the Indigenous people who have lived and farmed the land in this remote spot for millennia.

    “Our deep connection to this place is based on what we have inherited from our ancestors: our culture, our language,” said Espíndola, a member of a local research team that found evidence that people have inhabited the desert for more than 12,000 years.

    This distant outpost is at the heart of the global rush for lithium, a silvery-white metal used to make batteries for electric vehicles (EV) and renewable energy storage that are vital to the world’s clean energy transition. The Atacama salt flat is home to about 25% of the world’s known lithium reserves, turning Chile into the world’s second-largest lithium producer after Australia.

    For decades, the Atacama’s Indigenous Lickanantay people have protested against the expansion of the lithium industry, warning that the large evaporation ponds used to extract lithium from the brine beneath the salt flats are depleting scarce and sacred water supplies and destroying fragile desert ecosystems.

    Espíndola joined the protests, fearing that competition for water could pose an existential threat to his community.

    But last year, he was among dozens of Indigenous representatives who sat across the table from executives representing two Chilean mining giants to hammer out a governance model that gives Indigenous communities living close to lithium sites a bigger say over operations, and a greater share of the economic benefits.

    A man wearing a black T-shirt and a hat stands in front of a tree
    Rudecindo Espíndola stands in a green oasis near the village of Toconao in the Atacama desert (Photo: Francisco Parra)

    A pioneering deal

    The agreement is part of a landmark deal between state-owned copper miner Codelco and lithium producer the Sociedad Química y Minera de Chile (SQM) to extract lithium from the salt flats until 2060 through a joint venture called NovaAndino Litio.

    The governance model that promises people living in Toconao and other villages around the salt flats millions of dollars in benefits and greater environmental oversight is the first of its kind in mineral-rich Chile, and has been hailed by industry experts as the start of a potential model for more responsible mining for energy transition metals.

    NovaAndino told Climate Home News the negotiations with local communities represented an “unprecedented process that has allowed us to incorporate the territory’s vision early in the project’s design” and creates “a system of permanent engagement” with local communities.

    The company added it will contribute to sustainable development in the area and help “the safeguarding of [the Lickanantay people’s] culture and environmental values”.

      For mining companies, such agreements could help reduce social conflicts and protests, which have delayed and stalled extraction in other parts of South America’s lithium-rich region, known as the lithium triangle.

      “Argentina and Bolivia could learn a lot from what we’re doing [here],” said Rodrigo Guerrero, a researcher at the Santiago-based Espacio Público think-tank, adding that adopting participatory frameworks early on could prevent them from “going through the entire cycle of disputes” that Chile has experienced.

      Justice at last?

      As part of the governance deal, NovaAndino has pledged to adopt technologies that will reduce water use and mitigate the environmental impacts of lithium extraction.

      It has also committed to hold more than 100 annual meetings with community representatives to build a “good faith” relationship, and an Indigenous Advisory Council will meet twice a year with the company’s sustainability committee to discuss its environmental strategy, company sources said. The meetings are due to begin next month.

      To oversee the agreement’s implementation, an assembly – composed of representatives from all 25 signatory communities – will track the project’s progress. In addition, NovaAndino will hold one-on-one meetings with each community to address issues such as the hiring of local people and the protection of Indigenous employees.

      A flamingo at the Chaxa Lagoon in the Atacama salt flat (Photo: REUTERS/Cristian Rudolffi)

      Espíndola said the deal, while far from perfect, was an important step forward.

      “Previously, Indigenous participation was ambiguous. Now we talk about participation at [every] hierarchical level of this process, a very strong empowerment for Indigenous communities,” said Espíndola, adding that it did not give local communities everything they had asked for. For instance, they will not hold veto power over NovaAndino’s decisions or have a formal shareholder role.

      But after years of conflict with mining companies, a form of “participatory justice is being done”, he said.

      Not everyone is convinced that the accord, pushed by Chile’s former leftist government, marks progress, however.

      “Not in our name”

      The negotiations have caused deep divisions among the Lickanantay, some of whom say greater engagement with mining companies will not stop irreparable damage to the salt flats on which their traditional way of life depends. Others fear the promise of more money will further erode community bonds.

      In January 2024, Indigenous communities from five villages closest to the mining operations, including Toconao, blocked the main access roads to the lithium extraction sites. They said the Council of Atacameño Peoples, which represents 18 Lickanantay communities and was leading discussions with the company, no longer spoke for them.

      Official transcripts of consultations on the extension of the lithium contracts and how to share the promised benefits reveal deep divisions. Tensions peaked when communities around the mining operations clashed over how to distribute the multimillion-dollar windfall, with villages closest to the mining sites demanding the largest share.

      Eventually, separate deals establishing a new governance framework over mining activities were reached between Codelco and SQM with 25 local communities, including a specific agreement for the five villages closest to the extraction sites.

      Codelco’s chairman Maximo Pacheco (Photo: REUTERS/Rodrigo Garrido)

      The division caused by the separate deal for the five villages “will cause historic damage” to the unity of the Atacama desert’s Indigenous peoples, said Hugo Flores, president of the Council of Atacameño Associations, a separate group representing farmers, herders and local workers who oppose the mining expansion.

      Sonia Ramos, 83, a renowned Lickanantay healer and well-known anti-mining activist, lamented the fracturing of social bonds over money, and for the sake of meeting government objectives.

      “There is fragmentation among the communities themselves. Everything has transformed into disequilibrium,” said the 83-year-old.

      “[NovaAndino] supposedly has economic significance for the country, but for us, it is the opposite,” she said.

      The company told Climate Home News it has “acted consistently” to promote “transparent, voluntary, and good-faith dialogue with the communities in the territory, recognising their diversity and autonomy, and always respecting their timelines and forms of participation”.

      A one-off deal or a model for others?

      The NovaAndino joint venture is a pillar of Chile’s strategy to double lithium production by 2031 and consolidate the copper-producing nation’s role in the clean energy transition as demand for battery minerals accelerates.

      Chile’s new far-right president, José Antonio Kast, who was sworn in last week, promised to respect the lithium contracts signed by his predecessor’s administration – including the governance model.

      Still, some experts say the splits over the new model highlight the need for legislation that mandates direct engagement and minimum community benefits for all large mining projects.

      “In the past, this has lent itself to clientelism, communities who negotiate best or arrive first get the better deal,” said Pedro Zapata, a programme officer in Chile for the Natural Resource Governance Institute.

      “This can be to the detriment of other communities with less strength. We cannot have first- and second-class citizens subject to the same industry,” he added.

      The government is already negotiating two more public-private partnerships to extract lithium with mining giant Rio Tinto, which it said would include a framework to engage with Indigenous communities and share some of the revenues. The details will need to be negotiated between local people, the government and the company.

      Sharing the benefits of mining

      Under the deal in the Atacama, NovaAndino will run SQM’s current lithium concessions until they expire in 2030 before seeking new permits to expand mining in the region under a vast project known as “Salar Futuro” – a process which will require further mandatory consultations with communities.

      Besides the participatory mechanism, the new agreement promises more money than ever before for salt flat communities.

      A stone arch welcomes visitors to the village of Peine, one of the closest settlements to lithium mining sites in the Atacama salt flat (Photo: REUTERS/Cristian Rudolffi)

      Depending on the global price of lithium and their proximity to the mining operations, Indigenous communities could collectively receive roughly $30 million annually in funding – about double what SQM currently disburses under existing contracts.

      When taking into account the company’s payments to local and regional authorities, contributions could reach $150 million annually, according to the government.

      To access these resources, each community will need to submit a pipeline of projects they would like funding for under a complex arrangement that includes five separate financial streams:

      • A general investment fund will distribute funding based on each village’s size and proximity to the mining sites
      • A development fund will support projects specifically in the five communities closest to the extraction sites
      • Contributions to farmers and livestock associations
      • Contributions to local governments
      • A groundbreaking “intergenerational fund” held in trust for the Lickanantay until 2060

      For many isolated communities in the Atacama desert, financial contributions from mining firms have funded essential public services, such as healthcare and facilities like football pitches and swimming pools.

      In the past, communities have used some of the benefits they received from mining to build their own environmental monitoring units, hiring teams of hydrogeologists and lawyers to scrutinise miners’ activities.

      Espíndola said the new model could pave the way for more ambitious development projects such as water treatment plants and community solar energy projects.

      A man in a white shirt and glasses stands in front of a stone wall
      Sergio Cubillos, president of the Peine community, was one of the Indigenous representatives in the negotiations with Codelco and SQM (Photo credit: Formando Rutas/ Daniela Carvajal)

      Competition for water

      The depletion of water resources is one of local people’s biggest environmental concerns.

      To extract lithium from the salt flats, miners pump lithium-rich brine accumulated over millions of years in underground reservoirs into gigantic pools, where the water is left to evaporate under the sun and leaves behind lithium carbonate.

      One study has shown that the practice is causing the salt flat to sink by up to two centimetres a year. SQM recently said its current operations consume approximately 11,500 to 12,500 litres of industrial freshwater for every metric ton of lithium produced.

      NovaAndino has committed to significantly reduce the company’s water use by returning at least 30% of the water it extracts from the brine and eliminating the use of all freshwater in its operations within five years of obtaining an environmental permit.

        Cristina Dorador, a microbiologist at the University of Antofagasta, told Climate Home News that reinjecting the water underground is untested at a large scale and could impact the chemical composition of the salt flats.

        Continuing to extract lithium from the flats until 2060 could be the “final blow” for this fragile ecosystem, she said.

        Asked to comment on such concerns, NovaAndino said any new technology will be “subject to the highest regulatory standards”, and pledged to ensure transparency through “an updated monitoring system with the participation of Indigenous communities”.

        High price for hard-won gains

        For the five communities living on the doorstep of the lithium pools, one of the biggest gains is being granted physical access to the mining sites to monitor the lithium extraction and its impact on the salt flats.

        That is a first and will strengthen communities’ ability to call out environmental harms, said Sergio Cubillos, the community president of Peine, the village closest to the evaporation ponds. It could also give them the means to seek remediation through the courts if necessary, Espíndola said.

        Gaining such rights represents long-overdue progress, Cubillos said, but it has come at a high price for the Lickanantay people.

        “Communities receiving money today is what has ultimately led to this division, because we haven’t been able to figure out what we want, how we want it, and how we envision our future as a people,” he said.

        Main image: A truck loads concentrated brine at SQM’s lithium mine at the Atacama salt flat in Chile (Photo: REUTERS/Ivan Alvarado)

        The post Landmark deal to share Chile’s lithium windfall fractures Indigenous communities appeared first on Climate Home News.

        Landmark deal to share Chile’s lithium windfall fractures Indigenous communities

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