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.

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.
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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.
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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.
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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”.
The post Trump shifts US funds from shutting down foreign fossil fuels to expanding them appeared first on Climate Home News.
Trump shifts US funds from shutting down foreign fossil fuels to expanding them
Climate Change
Battle over cleaning up shipping set to resume at London talks
The US is expected to resume its attempt to sink measures for a greener global shipping sector at closed-door talks between governments at the International Maritime Organization (IMO) in early September.
The US and oil-producing allies like Saudi Arabia want to weaken a proposed plan for cleaner fuels that aims to reduce planet-heating emissions from the industry, which relies heavily on dirty bunker fuels. Shipping currently represents 3% of global emissions.
Those that want a softer system are likely to back a Liberian proposal which expert analysis suggests would see emissions fall by only half at most by 2050, far short of the sector’s agreed climate goals.
After several years of debate, governments provisionally agreed in April 2025 on the “Net Zero Framework” (NZF), a series of emissions reduction targets for shipowners, backed up with financial rewards for meeting the targets and fees for missing them.
But in October 2025, after a high-profile intervention from US President Donald Trump and threats of sanctions and visa restrictions, the US convinced a majority of voting nations to postpone the adoption of the NZF for a year.
Ralph Regenvanu, climate minister for the Pacific nation of Vanuatu, called the delay “unacceptable” given the urgency of accelerating climate change.
After a round of low-profile talks in May, the first of three further sets of talks on how to clean up shipping will begin at the IMO’s riverside headquarters in London on Tuesday, culminating in a final public session in November.
Em Fenton, who follows the talks as senior director of climate diplomacy at Opportunity Green, an NGO focused on aviation and shipping, said governments should not be sidetracked by alternative proposals to the NZF, calling them “a distraction from a hard-fought multilateral compromise”.
“If countries want to deliver a just and fair maritime transition, there is really only one choice: back the NZF and stand together in solidarity against those who would tear it apart,” Fenton added.
Five proposals on the table
Governments will discuss five different proposals submitted in advance of next week’s meeting. The most ambitious of these is from the Pacific island nation of Tuvalu, which has proposed a levy on the entirety of a ship’s emissions rather than just those above a certain level, as the NZF envisions.
That had been the original demand of Pacific nations before the NZF was provisionally adopted in April 2025. At the time, Tuvalu’s transport minister Simon Kofe described the NZF as disappointing and not ambitious enough.
For this reason, six Pacific countries abstained in the vote on the NZF. While they supported the original plan for its adoption in October 2025, they have used the delay to push again for more ambition.
John Kautoke, advisor to a group of Pacific nations called 6PAC+, told Climate Home News that the NZF “cannot diminish its already inadequate ambition. If anything, the NZF must increase in ambition if we are going to renegotiate its parameters.”
Analysis by the Institute of Marine Engineering, Science and Technology (IMarEST) suggests that, of the five proposals, only Tuvalu’s would meet the 2030 and 2040 emissions reduction targets for global shipping that were agreed by governments in 2023. Those were for cuts of 20% between 2008 and 2030, 70% by 2040 and then reaching net zero “by or around, i.e. close to 2050”.
Despite this, the UK, Australia, Canada and South Africa have formally proposed that governments adopt the NZF, which won support in a 63-13 vote among governments at the April 2025 talks. Trump’s US walked out halfway through.
According to IMarEst’s analysis, while the NZF proposal will not be enough to meet the industry’s targets, it will reduce emissions more cheaply than the Pacific proposal.
A proposal by Brazil – which fought hard for the NZF last October – suggests tweaking the framework to make meeting targets easier in the short term and harder in the long term.
While this compromise will make it more appealing to the owners of polluting ships and countries that support them, IMarEst estimates it would lead to higher cumulative emissions than either the NZF or Pacific proposals.
The NZF stipulates that fees for high-polluting shipowners should be be put into a Net Zero Fund and used to promote clean shipping fuels and a fairer transition. The Brazilian proposal would delay raising and spending these funds by two years, from 2029 to 2031.
Liberia’s proposal weakens emissions cuts
The US and Saudi Arabia are likely to swing behind a new proposal from Liberia, whose government makes millions of dollars a year selling the right for shipowners to register their vessels in the small West African nation via a US-based company.
This proposal would weaken the emissions reduction targets. IMarEst says it would cut the industry’s emissions at most by a half by 2050, falling far short of the target agreed in 2023 for international shipping to reach net zero “close to 2050”.
It would also replace the NZF’s fees for missing targets with a carbon trading system. As a result, there would be no Net Zero Fund and therefore less money available to incentivise green fuels and make the transition more equitable for poorer nations.
Pacific advisor Kautoke said that, as well as preventing shipping from reaching zero emissions by 2050, Liberia’s proposal would mean the Pacific “will not receive any support to deal with the disproportionately negative impacts created by the cost of the transition”.
“We get a double blow if we adopt the Liberian proposal,” he warned. “We get all the cost of a transition without any support, and we have an industry that continues to burn fossil fuels to an unforeseen point.”
Japanese proposal favours shipowners
Japan has submitted a late proposal to amend the NZF so that shipowners have more control over how the fees they would pay for emitting above a set threshold are spent.
University College London professor Tristan Smith has argued that this change means there will be no central mechanism to incentivise investments in clean fuels. He wrote on LinkedIn that under the system put forward by Japan, shipowners would be able to select which green projects their fees would go to. They could choose their own or those of a sister company or other shipowners, rather than funding broader just transition projects that would benefit marine workers or developing countries hit by rising shipping costs.
Despite its flaws, Smith added that Japan’s proposal “could still get taken seriously by some, given how appealing it may seem to shipowners who have consistently demanded control of revenues, and given how the US and other member states have pushed back against the IMO Net Zero Fund and [greenhouse gas] pricing.”
Tacit or explicit approval?
Next week, governments are expected to make statements saying which proposals – or which aspects of proposals – they prefer. Another set of talks will be held from November 23-27 before a potentially final round from November 30-December 4.
A new framework to tackle shipping emissions could be adopted at those talks if two-thirds of countries that are present and signed up to a regulation called Marpol Annex VI – endorsed by just over 100 states – vote in favour of it, as they did in April 2025.
The US and its allies are also trying to change the rules to make the next stage more difficult. Decisions that have been adopted at IMO meetings usually take effect automatically unless a certain number of countries object within a certain time period decided by governments, a system known as tacit approval.
But the US wants that to require explicit approval instead, so that any new emissions standard would not come into force unless enough governments – representing a certain percentage of the world’s shipping fleet – actively indicate support for it.
Critics say this change would give a small number of countries with large shipping registries the power to block implementation. Liberia has the world’s biggest shipping registry, run by an American company, followed by Panama and the Republic of the Marshall Islands.
Liberia and Panama have supported the US at the talks on the Net Zero Framework. The Marshall Islands has long been one of the most vocal supporters of climate action in shipping but, with its officials and shipping registry income vulnerable to US retaliation, did not sign on to the recent Pacific proposal vowing to strengthen the NZF if it is re-opened.
Brazilian negotiator Adriana de Medeiros Gabinio warned in April that the NZF’s opponents are trying to change the rules by which it comes into force as a “safety net to block” it.
The post Battle over cleaning up shipping set to resume at London talks appeared first on Climate Home News.
Battle over cleaning up shipping set to resume at London talks
Climate Change
Coles, Woolworths failing on deforestation commitments
SYDNEY, Wednesday 26 August 2026 — New 2026 Sustainability Reports released by supermarket giants Coles and Woolworths this week demonstrate the retailers are failing on their commitments to end deforestation in their supply chains.
Adele Chasson, Nature Policy Lead at Greenpeace Australia Pacific said:
“These so-called sustainability reports are revealing. Despite their public commitments in 2024 and 2025, neither Coles nor Woolworths have taken deforestation-linked beef off their shelves. Meanwhile, bulldozers continue to tear up forests and bushland, pushing wildlife closer to extinction and causing mass toxic runoff to flow into the Great Barrier Reef. Millions of native animals like koalas are losing their homes to beef pastures each year, while the big supermarkets put off action.
“Australians would be shocked to know that beef on the shelves of our biggest supermarkets could be pushing threatened species to the brink of extinction. Collectively Coles and Woolworths have made more than $2 billion in profits in the last year, profiting from the destruction of wildlife and precious Australian nature. Coles and Woolworths owe it to shoppers to deliver on their promises and end deforestation in their supply chains now.
“As big beef buyers, Coles and Woolworths have an essential role to play in keeping Australia’s unique forests standing. They can help stop the Great Barrier Reef from being poisoned by runoff and protect iconic forest wildlife by taking deforestation off their shelves. It’s time these big companies put their money where their mouths are and follow through on their promise of sourcing and supplying deforestation-free beef.”
Climate Change
New Zealand moves to protect business with law curtailing climate litigation
New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.
The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.
Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.
“Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.
Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.
Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.
Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.
In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.
Corporate lobbying in the shadows
Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.
“That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”
The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.
The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.
Green groups fail to stop bill
The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.
But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.
A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.
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Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.
But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.
The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.
Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”
Copycat legislation on the rise
New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.
In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.
The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.
UN General Assembly backs “climate obligations” set by world’s top court
Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.
“Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.
The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.
New Zealand moves to protect business with law curtailing climate litigation
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