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From Africa to Southeast Asia, the Trump administration is cancelling US support for projects designed to replace coal, oil and gas with clean energy, pushing instead for the use of American taxpayers’ money to support planet-heating fossil fuels.

Since Donald Trump took office in January, he has scrapped energy transition partnerships with South Africa, Indonesia and Vietnam and is trying to halt US backing for the African Development Bank (AfDB) and multilateral Climate Investment Funds.

At the same time, his administration has ordered the US Export-Import Bank (EXIM) to start supporting coal power projects abroad and, seemingly with some success, is putting pressure on the World Bank to fund more fossil fuels.

Climate campaigners said these changes would foster dependence on coal, oil and gas in developing countries, worsening climate change and holding back economic development.

At energy security talks, US pushes gas and derides renewables

US cuts to South Africa’s JETP

Since 2021, a group of wealthy countries including the US have teamed up with the coal-reliant emerging economies of South Africa, Indonesia and Vietnam on Just Energy Transition Partnership (JETP) plans to swap coal for clean energy in a way that is fair to workers and communities.

But Trump’s administration has pulled out of these deals. In March, the rest of the rich nations involved issued a statement saying the US’s withdrawal from the South African partnership was “regrettable”.

It meant the US would no longer provide $56 million in grants, and the US International Development Finance Corporation (DFC) would not provide $1 billion in loans on commercial terms or equity investment to South African projects. Even projects already being implemented were cancelled, according to a South African foreign ministry spokesperson.

Coal-reliant South African provinces falling behind on just transition

Projects funded by other countries in the coal-reliant province of Mpumalanga include developing green hydrogen, energy-efficient homes, better electricity transmission and mapping areas suitable for wind turbines.Coal-reliant South African provinces falling behind on just transition

US contributions represented just under 10% of the total grants provided and a similar share of the total pledges. The other countries said they remain “fully committed” to the programme and “some partners are exploring possibilities for supporting work previously being carried out by the US”.

CIF coal transition programme on hold

As well as ending direct support, the US is also throwing a spanner in the works of $500 million due to be provided by the CIF, which works through multilateral development banks, and its Accelerating Coal Transition (ACT) programme for South Africa.

In 2022, South Africa asked the CIF for $450 million in loans and $50 million in grants under this programme to repurpose three aging coal-fired power plants in Mpumalanga, replace the electricity they generated with renewables, fund community projects in the province and make its buildings more energy-efficient.

The plan – approved that year by governments on the CIF committee that oversees this programme, including the US – was for this money to unlock around $2.1 billion more, mainly from development banks and the private sector.

Trump shifts US foreign energy funding to fossil fuel expansion
The Hendrina coal power plant in South Africa on 16/11/2018 (Photo: Ruth Sacco/Greenpeace)

But in July 2024, following elections and a change of environment minister in Pretoria, South Africa tried to change the investment plan to reflect state-owned utility Eskom’s decision to keep the three coal plants running – albeit below their full capacity – until 2030.

With the nation having suffered frequent planned blackouts due to a shortage of electricity supply, the government cited “energy security concerns” for the proposed change. Altering the plan meant it had to seek approval from this committee – the Clean Technology Fund’s Trust Fund – again.

By the time of the committee meeting in February 2025, with Trump now in the White House, the plan had still not been signed off by governments. The co-chair’s meeting summary shows that South Africa urged governments to give it the greenlight.

But in early March, the US prevented those funds from being approved, according to a Bloomberg news report. Two sources with knowledge of the discussions also told Climate Home that the US was holding back funding.

While the US under Trump has become hostile to phasing out fossil fuels in general, it has a particularly bad relationship with South Africa’s government, cancelling all “aid and assistance” in February due to Pretoria’s criticism of US ally Israel and US allegations of discrimination against South Africa’s white minority.

First carbon credit scheme for early coal plant closures unveiled

The CIF committee next meets on June 11 in Washington, where the updated South African energy investment plan is due to be discussed, according to Bloomberg. A CIF spokesperson told Climate Home the agenda is “currently being finalised” and that deliberations related to the South African investment plan are “ongoing and not public”.

“A delay in funding means a delay in decarbonising the South African power sector,” said Tracy Ledger, head of just transition at the Johannesburg-based Public Affairs Research Institute.

Trump budget cuts to harm development

In the proposed US budget for 2026 – which has to be negotiated with Congress – the White House has proposed cutting $275 million of spending allocated to the CIF and the Global Environment Facility together, as well as taking $555 million away from the AfDB’s fund for Africa’s least developed countries because it is “not currently aligned to Administration priorities”.

Samuel Maimbo, a World Bank vice president who is bidding to lead the AfDB, said US cuts to the African Development Fund would have a “huge impact on Africa’s development”.

Even as it seeks to take money away from clean energy, the Trump administration has said it is willing to spend more public money supporting fossil fuel projects abroad – and has pressured international lenders like the World Bank to do the same, with some success.

EXIM backs coal projects

On the day he was inaugurated, Trump issued an executive order announcing he would withdraw from the Paris climate agreement and “revoked and rescinded immediately” former President Joe Biden’s international climate finance plan. He instructed the EXIM president at the time, Reta Jo Lewis, to report back in 30 days on how she had complied with this order.

On May 1, the board of directors of the bank – which provides loans and other support to US businesses to help them export their products – voted unanimously to reverse a ban on funding coal-fired power projects.

Solar squeeze: US tariffs threaten panel production and jobs in Thailand

According to Kate DeAngelis, deputy director of economic policy at Friends of the Earth US, who monitored the meeting online, the board’s acting chair James Cruse told those present that this move put EXIM in line with Trump’s executive order and that Cruse had supported it all along.

A bank spokesperson told Climate Home that the entire board agreed that these changes “put the Bank in alignment with charter and administration priorities”.

Asked whether, as DeAngelis claimed, the bank was quicker to heed Trump’s order to fund coal than Biden’s previous order to phase out support for fossil fuels, the spokesperson said that “as an independent agency, EXIM always works to align with the priorities of the current administration”, adding that it “is most wholly focused on ensuring [our] mission and charter mandates are upheld”.

Funding foreign coal makes the US an outlier internationally. In recent years, almost all major nations – including China – have promised to stop funding coal-fired power plants abroad, although some exceptions persist.

Oil Change International campaigner Laurie van der Burg said public funding was crucial for coal plant developers as these projects are now deemed too risky by private banks. She added that EXIM’s move was “concerning” but unlikely to reverse the global trend of coal finance dropping.

Push for World Bank to back gas

In April, meanwhile, US Treasury Secretary Scott Bessent said that the World Bank – which provides cheap loans and grants to developing countries – “must be tech neutral and prioritise affordability in energy investment”. “In most cases, this means investing in gas and other fossil fuel-based energy production,” he said.

Shortly before Bessent’s speech, World Bank President Ajay Banga told reporters he would seek approval from the bank’s board to enable more gas projects, which are currently only supported in limited circumstances. Customarily, the head of the World Bank is effectively chosen by the US president, with Bessent saying in April that Banga needed to earn the Trump administration’s trust.

Trump’s first 100 days: US walks away from global climate action

Fran Witt, who attended the bank’s spring meetings as part of her work with the NGO Recourse, told Climate Home that the bank should spend taxpayers’ money on playing “a leadership role in helping [energy] transition rather than fostering dependence on gas”.

She said that, while the World Bank top leadership will push hard for gas, it would be a “pretty thorny discussion”, with “more progressive executive directors probably trying to hold fire”.

Voting power is proportionate to the shares each government holds and, while the US has the most at 16%, other nations like Japan, China and European countries also have substantial sway.

If the bank does start backing gas infrastructure like pipelines and ports, Witt said she expects a lot of developing countries will be keen to access that funding – particularly in Asia where “there’s a massive dash for gas”.

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Trump shifts US funds from shutting down foreign fossil fuels to expanding them

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DeBriefed 6 February 2026: US secret climate panel ‘unlawful’ | China’s clean energy boon | Can humans reverse nature loss?

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Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.

This week

Secrets and layoffs

UNLAWFUL PANEL: A federal judge ruled that the US energy department “violated the law when secretary Chris Wright handpicked five researchers who rejected the scientific consensus on climate change to work in secret on a sweeping government report on global warming”, reported the New York Times. The newspaper explained that a 1972 law “does not allow agencies to recruit or rely on secret groups for the purposes of policymaking”. A Carbon Brief factcheck found more than 100 false or misleading claims in the report.

DARKNESS DESCENDS: The Washington Post reportedly sent layoff notices to “at least 14” of its climate journalists, as part of a wider move from the newspaper’s billionaire owner, Jeff Bezos, to eliminate 300 jobs at the publication, claimed Climate Colored Goggles. After the layoffs, the newspaper will have five journalists left on its award-winning climate desk, according to the substack run by a former climate reporter at the Los Angeles Times. It comes after CBS News laid off most of its climate team in October, it added.

WIND UNBLOCKED: Elsewhere, a separate federal ruling said that a wind project off the coast of New York state can continue, which now means that “all five offshore wind projects halted by the Trump administration in December can resume construction”, said Reuters. Bloomberg added that “Ørsted said it has spent $7bn on the development, which is 45% complete”.

Around the world

  • CHANGING TIDES: The EU is “mulling a new strategy” in climate diplomacy after struggling to gather support for “faster, more ambitious action to cut planet-heating emissions” at last year’s UN climate summit COP30, reported Reuters.
  • FINANCE ‘CUT’: The UK government is planning to cut climate finance by more than a fifth, from £11.6bn over the past five years to £9bn in the next five, according to the Guardian.
  • BIG PLANS: India’s 2026 budget included a new $2.2bn funding push for carbon capture technologies, reported Carbon Brief. The budget also outlined support for renewables and the mining and processing of critical minerals.
  • MOROCCO FLOODS: More than 140,000 people have been evacuated in Morocco as “heavy rainfall and water releases from overfilled dams led to flooding”, reported the Associated Press.
  • CASHFLOW: “Flawed” economic models used by governments and financial bodies “ignor[e] shocks from extreme weather and climate tipping points”, posing the risk of a “global financial crash”, according to a Carbon Tracker report covered by the Guardian.
  • HEATING UP: The International Olympic Committee is discussing options to hold future winter games earlier in the year “because of the effects of warmer temperatures”, said the Associated Press.

54%

The increase in new solar capacity installed in Africa over 2024-25 – the continent’s fastest growth on record, according to a Global Solar Council report covered by Bloomberg.


Latest climate research

  • Arctic warming significantly postpones the retreat of the Afro-Asian summer monsoon, worsening autumn rainfall | Environmental Research Letters
  • “Positive” images of heatwaves reduce the impact of messages about extreme heat, according to a survey of 4,000 US adults | Environmental Communication
  • Greenland’s “peripheral” glaciers are projected to lose nearly one-fifth of their total area and almost one-third of their total volume by 2100 under a low-emissions scenario | The Cryosphere

(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Monday, Tuesday, Wednesday, Thursday and Friday.)

Captured

A blue and grey bar chart on a white background showing that clean energy drove more than a third of China's economic growth in 2025. The chart shows investment growth and GDP growth by sector in trillions of yuan. The source is listed at the bottom of the chart as CREA analysis for Carbon Brief.

Solar power, electric vehicles and other clean-energy technologies drove more than a third of the growth in China’s economy in 2025 – and more than 90% of the rise in investment, according to new analysis for Carbon Brief (shown in blue above). Clean-energy sectors contributed a record 15.4tn yuan ($2.1tn) in 2025, some 11.4% of China’s gross domestic product (GDP) – comparable to the economies of Brazil or Canada, the analysis said.

Spotlight

Can humans reverse nature decline?

This week, Carbon Brief travelled to a UN event in Manchester, UK to speak to biodiversity scientists about the chances of reversing nature loss.

Officials from more than 150 countries arrived in Manchester this week to approve a new UN report on how nature underpins economic prosperity.

The meeting comes just four years before nations are due to meet a global target to halt and reverse biodiversity loss, agreed in 2022 under the landmark “Kunming-Montreal Global Biodiversity Framework” (GBF).

At the sidelines of the meeting, Carbon Brief spoke to a range of scientists about humanity’s chances of meeting the 2030 goal. Their answers have been edited for length and clarity.

Dr David Obura, ecologist and chair of Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)

We can’t halt and reverse the decline of every ecosystem. But we can try to “bend the curve” or halt and reverse the drivers of decline. That’s the economic drivers, the indirect drivers and the values shifts we need to have. What the GBF aspires to do, in terms of halting and reversing biodiversity loss, we can put in place the enabling drivers for that by 2030, but we won’t be able to do it fast enough at this point to halt [the loss] of all ecosystems.

Dr Luthando Dziba, executive secretary of IPBES

Countries are due to report on progress by the end of February this year on their national strategies to the Convention on Biological Diversity [CBD]. Once we get that, coupled with a process that is ongoing within the CBD, which is called the global stocktake, I think that’s going to give insights on progress as to whether this is possible to achieve by 2030…Are we on the right trajectory? I think we are and hopefully we will continue to move towards the final destination of having halted biodiversity loss, but also of living in harmony with nature.

Prof Laura Pereira, scientist at the Global Change Institute at Wits University, South Africa

At the global level, I think it’s very unlikely that we’re going to achieve the overall goal of halting biodiversity loss by 2030. That being said, I think we will make substantial inroads towards achieving our longer term targets. There is a lot of hope, but we’ve also got to be very aware that we have not necessarily seen the transformative changes that are going to be needed to really reverse the impacts on biodiversity.

Dr David Cooper, chair of the UK’s Joint Nature Conservation Committee and former executive secretary of the Convention on Biological Diversity

It’s important to look at the GBF as a whole…I think it is possible to achieve those targets, or at least most of them, and to make substantial progress towards them. It is possible, still, to take action to put nature on a path to recovery. We’ll have to increasingly look at the drivers.

Prof Andrew Gonzalez, McGill University professor and co-chair of an IPBES biodiversity monitoring assessment

I think for many of the 23 targets across the GBF, it’s going to be challenging to hit those by 2030. I think we’re looking at a process that’s starting now in earnest as countries [implement steps and measure progress]…You have to align efforts for conserving nature, the economics of protecting nature [and] the social dimensions of that, and who benefits, whose rights are preserved and protected.

Neville Ash, director of the UN Environment Programme World Conservation Monitoring Centre

The ambitions in the 2030 targets are very high, so it’s going to be a stretch for many governments to make the actions necessary to achieve those targets, but even if we make all the actions in the next four years, it doesn’t mean we halt and reverse biodiversity loss by 2030. It means we put the action in place to enable that to happen in the future…The important thing at this stage is the urgent action to address the loss of biodiversity, with the result of that finding its way through by the ambition of 2050 of living in harmony with nature.

Prof Pam McElwee, Rutgers University professor and co-chair of an IPBES “nexus assessment” report

If you look at all of the available evidence, it’s pretty clear that we’re going to keep experiencing biodiversity decline. I mean, it’s fairly similar to the 1.5C climate target. We are not going to meet that either. But that doesn’t mean that you slow down the ambition…even though you recognise that we probably won’t meet that specific timebound target, that’s all the more reason to continue to do what we’re doing and, in fact, accelerate action.

Watch, read, listen

OIL IMPACTS: Gas flaring has risen in the Niger Delta since oil and gas major Shell sold its assets in the Nigerian “oil hub”, a Climate Home News investigation found.

LOW SNOW: The Washington Post explored how “climate change is making the Winter Olympics harder to host”.

CULTURE WARS: A Media Confidential podcast examined when climate coverage in the UK became “part of the culture wars”.

Coming up

Pick of the jobs

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 February 2026: US secret climate panel ‘unlawful’ | China’s clean energy boon | Can humans reverse nature loss? appeared first on Carbon Brief.

DeBriefed 6 February 2026: US secret climate panel ‘unlawful’ | China’s clean energy boon | Can humans reverse nature loss?

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China Briefing 5 February 2026: Clean energy’s share of economy | Record renewables | Thawing relations with UK

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Welcome to Carbon Brief’s China Briefing.

China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.

Key developments

Solar and wind eclipsed coal

‘FIRST TIME IN HISTORY’: China’s total power capacity reached 3,890 gigawatts (GW) in 2025, according to a National Energy Administration (NEA) data release covered by industry news outlet International Energy Net. Of this, it said, solar capacity rose 35% to 1,200GW and wind capacity was up 23% to 640GW, while thermal capacity – which is mostly coal – grew 6% to just over 1,500GW. This marks the “first time in history” that wind and solar capacity has outranked coal capacity in China’s power mix, reported the state-run newspaper China Daily. China’s grid-related energy storage capacity exceeded 213GW in 2025, said state news agency Xinhua. Meanwhile, clean-energy industries “drove more than 90%” of investment growth and more than half of GDP growth last year, said the Guardian in its coverage of new analysis for Carbon Brief. (See more in the spotlight below.)

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DAWN FOR SOLAR: Solar power capacity alone may outpace coal in 2026, according to projections by the China Electricity Council (CEC), reported business news outlet 21st Century Business Herald. It added that non-fossil sources could account for 63% of the power mix this year, with coal falling to 31%. Separately, the China Renewable Energy Society said that annual wind-power additions could grow by between 600-980GW over the next five years, with annual additions of 120GW expected until 2028, said industry news outlet China Energy Net. China Energy Net also published the full CEC report.

STATE MEDIA VOICE: Xinhua published several energy- and climate-related articles in a series on the 15th five-year plan. One said that becoming a low-carbon energy “powerhouse” will support decarbonisation efforts, strengthen industrial innovation and improve China’s “global competitive edge and standing”. Another stated that coal consumption is “expected” to peak around 2027, with continued “growth” in the power and chemicals sector, while oil has already peaked. A third noted that distributed energy systems better matched the “characteristics of renewable energy” than centralised ones, but warned against “blind” expansion and insufficient supporting infrastructure. Others in the series discussed biodiversity and environmental protection and recycling of clean-energy technology. Meanwhile, the communist party-affiliated People’s Daily said that oil will continue to play a “vital role” in China, even after demand peaks.

Starmer and Xi endorsed clean-energy cooperation

CLIMATE PARTNERSHIP: UK prime minister Keir Starmer and Chinese president Xi Jinping pledged in Beijing to deepen cooperation on “green energy”, reported finance news outlet Caixin. They also agreed to establish a “China-UK high-level climate and nature partnership”, said China Daily. Xi told Starmer that the two countries should “carry out joint research and industrial transformation” in new energy and low-carbon technologies, according to Xinhua. It also cited Xi as saying China “hopes” the UK will provide a “fair” business environment for Chinese companies.

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OCTOPUS OVERSEAS: During the visit, UK power-trading company Octopus Energy and Chinese energy services firm PCG Power announced they would be starting a new joint venture in China, named Bitong Energy, reported industry news outlet PV Magazine. The move “marks a notable direct entry” of a foreign company into China’s “tightly regulated electricity market”, said Caixin.

PUSH AND PULL: UK policymakers also visited Chinese clean-energy technology manufacturer Envision in Shanghai, reported finance news outlet Yicai. It quoted UK business secretary Peter Kyle emphasising that partnering with companies “like Envision” on sustainability is a “really important part of our future”, particularly in terms of job creation in the UK. Trade minister Chris Bryant told Radio Scotland Breakfast that the government will decide on Chinese wind turbine manufacturer Mingyang’s plans for a Scotland factory “soon”. Researchers at the thinktank Oxford Institute for Energy Studies wrote in a guest post for Carbon Brief that greater Chinese competition in Europe’s wind market could “help spur competition in Europe”, if localisation rules and “other guardrails” are applied.

More China news

  • LIFE SUPPORT: China will update its coal capacity payment mechanism, which will raise thresholds for coal-fired power plants and expand to cover gas-fired power and pumped and new-energy storage, reported current affairs outlet China News.
  • FRONTIER TECH: The world’s “largest compressed-air power storage plant” has begun operating in China, said Bloomberg.
  • PARTNERSHIP A ‘MISTAKE’: The EU launched a “foreign subsidies” probe into Chinese wind turbine company Goldwind, said the Hong Kong-based South China Morning Post. EU climate chief Wopke Hoekstra said the bloc must resist China’s pull in clean technologies, according to Bloomberg.
  • TRADE SPAT: The World Trade Organization “backed a complaint by China” that the US Inflation Reduction Act “discriminated against” Chinese cleantech exports, said Reuters.
  • NEW RULES: China has set “new regulations” for the Waliguan Baseline Observatory, which provides “key scientific references for the United Nations Framework Convention on Climate Change”, said the People’s Daily.

Captured

New or reactivated proposals for coal-fired power plants in China totalled 161GW in 2025, according to a new report covered by Carbon Brief

Spotlight

Clean energy drove China’s economic growth in 2025

New analysis for Carbon Brief finds that clean-energy sectors contributed the equivalent of $2.1tn to China’s economy last year, making it a key driver of growth. However, headwinds in 2026 could restrict growth going forward – especially for the solar sector.

Below is an excerpt from the article, which can be read in full on Carbon Brief’s website.

Solar power, electric vehicles (EVs) and other clean-energy technologies drove more than a third of the growth in China’s economy in 2025 – and more than 90% of the rise in investment.

Clean-energy sectors contributed a record 15.4tn yuan ($2.1tn) in 2025, some 11.4% of China’s gross domestic product (GDP)

Analysis shows that China’s clean-energy sectors nearly doubled in real value between 2022-25 and – if they were a country – would now be the 8th-largest economy in the world.

These investments in clean-energy manufacturing represent a large bet on the energy transition in China and overseas, creating an incentive for the government and enterprises to keep the boom going.

However, there is uncertainty about what will happen this year and beyond, particularly due to a new pricing system, worsening industrial “overcapacity” and trade tensions.

Outperforming the wider economy

China’s clean-energy economy continues to grow far more quickly than the wider economy, making an outsized contribution to annual growth.

Without these sectors, China’s GDP would have expanded by 3.5% in 2025 instead of the reported 5.0%, missing the target of “around 5%” growth by a wide margin.

Clean energy made a crucial contribution during a challenging year, when promoting economic growth was the foremost aim for policymakers.

In 2024, EVs and solar had been the largest growth drivers. In 2025, it was EVs and batteries, which delivered 44% of the economic impact and more than half of the growth of the clean-energy industries.

The next largest subsector was clean-power generation, transmission and storage, which made up 40% of the contribution to GDP and 30% of the growth in 2025.

Within the electricity sector, the largest drivers were growth in investment in wind and solar power generation capacity, along with growth in power output from solar and wind, followed by the exports of solar-power equipment and materials.

But investment in solar-panel supply chains, a major growth driver in 2022-23, continued to fall for the second year, as the government made efforts to rein in overcapacity and “irrational” price competition.

Headwinds for solar

Ongoing investment of hundreds of billions of dollars represents a gigantic bet on a continuing global energy transition.

However, developments next year and beyond are unclear, particularly for solar. A new pricing system for renewable power is creating uncertainty, while central government targets have been set far below current rates of clean-electricity additions.

Investment in solar-power generation and solar manufacturing declined in the second half of the year.

The reduction in the prices of clean-energy technology has been so dramatic that when the prices for GDP statistics are updated, the sectors’ contribution to real GDP – adjusted for inflation or, in this case deflation – will be revised down.

Nevertheless, the key economic role of the industry creates a strong motivation to keep the clean-energy boom going. A slowdown in the domestic market could also undermine efforts to stem overcapacity and inflame trade tensions by increasing pressure on exports to absorb supply.

Local governments and state-owned enterprises will also influence the outlook for the sector.

Provincial governments have a lot of leeway in implementing the new electricity markets and contracting systems for renewable power generation. The new five-year plans, to be published this year, will, therefore, be of major importance.

This spotlight was written for Carbon Brief by Lauri Myllyvirta, lead analyst at Centre for Research on Energy and Clean Air (CREA), and Belinda Schaepe, China policy analyst at CREA. CREA China analysts Qi Qin and Chengcheng Qiu contributed research.

Watch, read, listen

PROVINCE INFLUENCE: The Institute for Global Decarbonization Progress, a Beijing-based thinktank, published a report examining the climate-related statements in provincial recommendations for the 15th five-year plan.

‘PIVOT’?: The Outrage + Optimism podcast spoke with the University of Bath’s Dr Yixian Sun about whether China sees itself as a climate leader and what its role in climate negotiations could be going forward.

COOKING FOR CLEAN-TECH: Caixin covered rising demand for China’s “gutter oil” as companies “scramble” to decarbonise.

DON’T GO IT ALONE: China News broadcast the Chinese foreign ministry’s response to the withdrawal of the US from the Paris Agreement, with spokeswoman Mao Ning saying “no country can remain unaffected” by climate change.


$6.8tn

The current size of China’s green-finance economy, including loans, bonds and equity, according to Dr Ma Jun, the Institute of Finance and Sustainability’s president,in a report launch event attended by Carbon Brief. Dr Ma added that “green loans” make up 16% of all loans in China, with some areas seeing them take a 34% share.


New science

  • China’s official emissions inventories have overestimated its hydrofluorocarbon emissions by an average of 117m tonnes of carbon dioxide equivalent (mtCO2e) every year since 2017 | Nature Geoscience
  • “Intensified forest management efforts” in China from 2010 onwards have been linked to an acceleration in carbon absorption by plants and soils | Communications Earth and Environment

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China Briefing is written by Anika Patel and edited by Simon Evans. Please send tips and feedback to china@carbonbrief.org

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Congress rescues aid budget from Trump’s “evisceration” but climate misses out

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Under pressure from Congress, President Donald Trump quietly signed into law a funding package that provides billions of dollars more in foreign assistance spending than he had originally wanted to for the fiscal year between October 2025 and September 2026.

The legislation allocates $50 billion, $9 billion less than the level agreed the previous year under President Biden but $19 billion more than Trump proposed, restoring health and humanitarian aid spending to near pre-Trump levels.

Democratic Senator Patty Murray, vice-chair of the committee on appropriations, said that “while including some programmatic funding cuts, the bill rejects the Trump administration’s evisceration of US foreign assistance programmes”.

But, with climate a divisive issue in the US, spending on dedicated climate programmes was largely absent. Clarence Edwards, executive director of E3G’s US office, told Climate Home News that “the era of large US government investment in climate policy is over, at least for the foreseeable future”.

The package ruled out any support for the Climate Investment Funds’ Clean Technology Fund, which supports low-carbon technologies in developing countries and had received $150 million from the US in the previous fiscal year.

The US also made no pledge to the Africa Development Fund (ADF) – a mechanism run by the African Development Bank that provides grants and low-interest loans to the poorest African nations. A government spokesperson told Reuters that decision reflected concerns that “like too many other institutions, the ADF has adopted a disproportionate focus on climate change, gender, and social issues”.

GEF spared from cuts

Trump did, however, agree to Congress’s request to make $150 million – more than last year – available for the Global Environment Facility (GEF), which tackles environmental issues like biodiversity loss, land degradation and climate change.

Edwards said that GEF funding “survived due to Congressional pushback and a refocus on non-climate priorities like biodiversity, plastics and ocean ecosystems, per US Treasury guidance”.

Congress also pressured Trump into giving $54 million to the Rome-based International Fund for Agricultural Development. Its goals include helping small-scale farmers adapt to climate change and reduce emissions.

    Without any pressure from Congress, Trump approved tens of millions of dollars each for multilateral development banks in Asia, Africa and Europe and just over a billion dollars for the World Bank’s International Development Association, which funds development projects in the world’s poorest countries.

    As most of these banks have climate programmes and goals, much of this money is likely to be spent on climate action. The largest lender, the World Bank, aims to devote 45% of its finance to climate programmes, although, as Climate Home News has reported, its definition of climate spending is considered too loose by some analysts.

    The bill also earmarks $830 million – nearly triple what Trump originally wanted – for the Millennium Challenge Corporation, a George W. Bush-era institution that has increasingly backed climate-focussed projects like transmission lines to bring clean hydropower to cities in Nepal.

    No funding boost for DFC

    While Congress largely increased spending, it rejected Trump’s call for nearly $4 billion for the Development Finance Corporation (DFC), granting just under $1 billion instead – similar to previous years.

    Under Biden, there had been a push to get the DFC to support clean energy projects. But the Trump administration ended DFC’s support for projects like South Africa’s clean energy transition.

      At a recent board meeting, the DFC’s board – now dominated by Trump administration officials – approved US financial support for Chevron Mediterranean Limited, the developers of an Israeli gas field.

      Kate DeAngelis, deputy director at Friends of the Earth US told Climate Home News it was good for the climate that Trump had not been able to boost the DFC’s budget. “DFC seems set up to focus mainly on the dirtiest deals without any focus on development,” she said.

      US Congressional elections in November could lead to Democrats retaking control of one or both houses of Congress. Edwards said that “Democratic gains might restore funding [in the next fiscal year], while Republican holds would likely extend cuts”.

      But he warned that “budgetary pressures and a murky economic environment don’t hold promise of increases in US funding for foreign assistance and climate programs, regardless of which party controls Congress”.

      The post Congress rescues aid budget from Trump’s “evisceration” but climate misses out appeared first on Climate Home News.

      Congress rescues aid budget from Trump’s “evisceration” but climate misses out

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