Uganda’s plan to use future revenues from its emerging oil industry to drive economic development may not work as expected, because evidence so far shows that the government’s effort to extract and export its crude oil may not produce the returns it is counting on, analysts have warned.
A new report by the Institute for Energy Economics and Financial Analysis (IEEFA) found that Uganda stands to benefit far less from oil production than previously projected, with revenues set to be half of earlier estimates if the world transitions away from fossil fuels on a path to reaching net zero emissions.
Uganda’s oil ambitions involve developing two oilfields on the shores of Lake Albert – Tilenga and Kingfisher – and constructing the 1,443-km East African Crude Oil Pipeline (EACOP), with the aim of transporting 230,000 barrels of crude per day to Tanzania’s Tanga port for export.
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Led by oil major TotalEnergies and China National Offshore Oil Company (CNOOC), alongside the Uganda National Oil Company (UNOC) and Tanzania Petroleum Development Corporation, the project was given the financial go-ahead in 2022.
Will Scargill, one of the IEEFA report’s authors, told an online launch this week that oil may have seemed a historically attractive option for Uganda but the benefits it could yield are very sensitive to major risks, including cost overruns around the project and in the refining sector, which it also plans to enter.
“The EACOP project is expected to cost much more than the original expectations, so it’s a major project risk in Uganda as well,” he said.
The start of oil production and exports through the East Africa pipeline had been expected by 2025 – nearly 20 years after commercially viable oil was first discovered in the country – but has now been delayed until late 2026 or 2027.
Meanwhile, the cost of construction – particularly for the EACOP part of the project – has continued to rise, reaching around $5.6 billion, a 55% increase from the $3.6 billion projected shortly before it got financial approval, the report said.

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Beyond delays and cost overruns, “there’s the risk the impact of the accelerating shift away from fossil fuels will have on the oil market,” Scargill said.
The report said the most significant factors for the Ugandan oil industry – which are beyond its control – have been the reduced outlook for international trade spurred by recently imposed US tariffs and the growing uptake of electric vehicles (EVs), particularly in China – which has led to a peak in transport fuel demand and an expected peak in overall oil consumption by 2027.
The 2025 oil outlook from the International Energy Agency (IEA) shows that growth in global oil demand will fall significantly by the end of the decade before entering a decline, driven mainly by electrification in transport which will displace 5.4 million barrels per day of global oil demand by the end of the decade.
In addition, structural changes in global energy markets, including oil supply growth outside the OPEC+ bloc – a group of major oil-producing countries including Saudi Arabia and Russia that sets production quotas – particularly in the US, Brazil and Guyana, are lowering prices.
“It’s a particularly bad time to be taking single big bets on particular sectors that are linked to external markets,” said Matthew Huxham, a co-author of the IEEFA report.
To make matters worse, Uganda’s public finances have been weakened in the past decade by external shocks including higher US interest rates and commodity prices, resulting in downgrades of the country’s sovereign credit rating, he added.
“What that means is, generally speaking, there is less fiscal resilience to shocks,” Huxham said.
Lower global demand for oil would likely see lower prices, profits and revenues for the Ugandan government, the report authors said. In addition, a global shift to renewable energy would mean Uganda selling even fewer barrels into international markets.
All of these factors suggest that investment in Uganda’s oil industry “would unlikely be as transformational as expected” for its development, Scargill said.
Climate Home News reached out to the Uganda National Oil Company and EACOP but had not received a response at the time of publication.
Foreign investors to recover costs while Uganda faces risks
Uganda has invested a significant amount of government funds not only in the oil pipeline but also in supporting infrastructure such as a planned refinery. The report authors raised concerns about revenue-sharing agreements under which foreign investors are entitled to recover their costs first, taking a larger share of oil revenues in the early years of production.
IEEFA estimates that while TotalEnergies’ and CNOOC’s returns could fall by 25-34% as the world uses less oil and moves from fossil fuels to clean energy, Uganda’s expected revenues could decline by up to 53%.
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Uganda is pursuing a $4.5-billion oil refinery project in Hoima District, with the country’s oil company UNOC due to take a 40% stake. To finance part of this investment and other oil-related infrastructure, UNOC has secured a loan facility of up to $2 billion from commodity trader Vitol.
Under the deal, Vitol gains priority access to oil revenues, placing it ahead of the Ugandan government when money starts flowing in, the report said. The IEEFA analysts warn that this will likely displace or defer planned use of the revenues for other government spending on things like health, education and climate adaptation, especially if oil production and the refinery construction are delayed or profits disappoint.
“Even if the refinery project is on time and on budget, the refinery and loan repayments could consume 40% of Uganda’s oil revenues through 2032,” Scargill noted.
Pointing to recent cost overruns at oil refinery projects in Africa, the report authors said Nigeria’s
Dangote refinery ended up costing more than twice the original estimate – jumping from $9 billion to over $18 billion.
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They said analysis shows the Uganda refinery will cost 25% more than planned, on top of an expected overrun of over 50% on the EACOP project, cutting the annual return rate to 10%.
“This means there is a high chance the project, by itself, will not make any money,” the report added.
Responding to the report, the StopEACOP coalition said the analysis confirms that beyond causing ongoing environmental harm and displacing hundreds of thousands, the project “does not make economic sense, especially for the host countries”.
They called on financial institutions, including Standard Bank, KCB Uganda, Stanbic Uganda, Afreximbank, and the Islamic Corporation for the Development of the Private Sector, which are backing the “controversial” EACOP project, “to seriously engage with the findings of the IEEFA reports and reconsider their support”.
Prioritise climate-resilient investments instead
In another report released alongside the one on oil project finances, IEEFA argued that Uganda could achieve stronger and more effective development outcomes by redirecting its scarce public resources towards climate-resilient, electrified industrialisation rather than doubling down on oil.
Uganda is among the countries most vulnerable to climate change, yet ranks low in readiness to cope with its impacts. The report authors urged the government to apply stricter criteria when deciding how to spend public funds, focusing on things like improving access to modern energy services and climate adaptation.
The IEEFA report recommended investments in off-grid and mini-grid solar electrification, agro-processing, cold storage, crop irrigation and better roads as lower-risk alternatives to investing in fossil fuels.
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Investments that take climate risks into account could also attract concessional climate finance and align with Uganda’s fourth National Development Plan and Just Transition Framework, the report said.
“They also take less long to construct, are easy to deploy, pay back over a shorter period and they also put less pressure on the system,” Huxham added.
The post Uganda may see lower oil revenues than expected as costs rise and demand falls appeared first on Climate Home News.
Uganda may see lower oil revenues than expected as costs rise and demand falls
Climate Change
Analysis: Why clean energy will cut UK gas imports by more than North Sea drilling
The Iran war has spurred a range of commentators to renew calls for the UK government to issue new licences for oil and gas drilling in the North Sea.
They argue that new domestic drilling could boost energy security at a time of volatility in major oil-and-gas producing countries in the Middle East.
However, such arguments overlook that the North Sea basin is in long-term decline and issuing new licences would only make a fractional difference to new production.
Carbon Brief analysis shows that the UK’s gas production in the North Sea is set to drop 99% by 2050, when compared to 2025 levels, with new licences pushing this figure down only slightly to 97%. (Oil production is also in long-term decline.)
Additionally, the analysis shows that the continued expansion of renewables and low-carbon technologies offers far greater protection against volatile gas imports than new domestic drilling.
The chart below shows how the roughly 15 gigawatts (GW) of wind and solar power secured in the latest UK renewable-energy auction will avoid the need to import 78 “Q-Flex” tankers full of liquified natural gas (LNG) each year by 2030. This gas would cost roughly £4bn at current prices, which stood at 126p per therm as of 11 March.
(Gas can be either transported via pipelines or compressed into LNG and shipped across oceans, as is the case for gas coming into the UK from the US, Qatar or Algeria, for example.)
This is nearly six times more than the extra domestic gas production in 2030 if new licences are issued for North Sea drilling, according to Carbon Brief analysis of data from the UK government’s North Sea Transition Authority (NSTA).
Moreover, the 15GW of new renewables were secured in a single auction round. Another auction, likely to add significantly to this tally, is due to take place later in 2026.
Industry sources often stress the potential for the discovery of new North Sea reserves in the future. But, even if such discoveries were to materialise, they would take many years to start yielding gas, even as the UK moves away from fossil fuels altogether.

Other measures, such as replacing millions of gas boilers with heat pumps, would also be more effective at curbing the UK’s reliance on imports of foreign gas, according to Carbon Brief analysis.
Even changes to people’s behaviour, such as adjusting the “flow temperature” on gas boilers to save energy while maintaining comfort levels, would reduce gas demand significantly, if performed at scale.
The opposition Conservatives and the hard-right, climate-sceptic Reform UK party have called for more drilling in the North Sea. At the same time, they have pledged to end support for renewables, heat pumps and the UK’s legally binding target of reaching net-zero emissions by 2050, which was legislated by the Conservatives in 2019.
Carbon Brief’s analysis shows that this combination of actions – issuing new licenses for the North Sea while rolling back climate policies – would be very likely to increase the UK’s dependence on imported gas, rather than to reduce it.
(This is in line with analysis from the National Energy System Operator, NESO, which found that reaching the UK’s net-zero target would cut fossil-fuel imports, relative to a scenario that rowed back on climate action while boosting domestic fossil-fuel production.)
Industry lobby group Offshore Energies UK has commissioned statistical modelling that it says shows that more oil and gas could still be extracted from the North Sea than expected by the NSTA, if the government were to make various policy changes.
However, this modelling still shows a rapid decline in North Sea production.
After decades of drilling, the majority of reserves left in the North Sea are oil. Around 80% of oil produced in UK waters is currently exported to the global market.
The UN Emissions Gap Report in 2023 said that the coal, oil and gas extracted over the lifetime of producing and under-construction mines and fields, as of 2018, “would emit more than 3.5 times the carbon budget available” for meeting the Paris Agreement’s aspirational target of keeping global warming to no more than 1.5C above pre-industrial levels.
At the COP30 climate summit in Brazil in November 2025, the UK joined a group of more than 80 countries in calling for a global phaseout of fossil fuels.
Methodology
This analysis is based on additional UK domestic gas production or reduced gas demand in 2030 and is measured in terms of the number of LNG tanker deliveries avoided.
The estimate of additional gas production in 2030 is taken from the NSTA projections published in February 2026. The extra output is from NSTA’s “illustrative” estimates for the development of “undeveloped discoveries” and “future discoveries”.
The gas demand avoided by new wind and solar is based on the latest “AR7” auction for new renewables, the results of which were announced in early 2026. It assumes that offshore wind operates with a “load factor” of 50%, onshore wind at 36% and solar at 12%. The avoided gas demand is based on replacing gas-fired electricity generation.
For heat pumps, the estimate assumes a typical home with a gas demand of 11,500 kilowatt hours (kWh) per year, replacing an 85% efficient gas boiler with a 300% efficient heat pump.
It assumes that the electricity to power these heat pumps is drawn from the average mix of electricity generation in 2030. It also assumes that the “carbon intensity” of generation – the emissions per unit of output – falls to 50g of carbon dioxide per kWh, implying that roughly 12% of electricity generation is from gas.
The amount of gas avoided by switching to heat pumps would be roughly halved if all of these heat pumps drew all of their electricity needs from gas-fired power stations.
The post Analysis: Why clean energy will cut UK gas imports by more than North Sea drilling appeared first on Carbon Brief.
Analysis: Why clean energy will cut UK gas imports by more than North Sea drilling
Climate Change
Cropped 11 March 2026: Iran water worries | Seabed-mining treaty progress | Women farmers and climate change
We handpick and explain the most important stories at the intersection of climate, land, food and nature over the past fortnight.
This is an online version of Carbon Brief’s fortnightly Cropped email newsletter.
Subscribe for free here.
Key developments
Fertiliser disruption in Middle East
FOOD RISKS: The US-Israel war on Iran is “disrupting” the production and export of synthetic fertilisers, reported the Financial Times, which could lead to food price increases. The newspaper noted that the Strait of Hormuz passage, which remains at a near-standstill, is a “crucial shipping route for exports” including urea, sulphur and ammonia – all used in fertilisers. The Guardian noted: “Roughly half of global food production depends on synthetic nitrogen and crop yields would fall without fertiliser.”
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PLANT FOOD: The fertiliser situation is “especially troubling for farmers in the northern hemisphere” who are beginning to plant their spring crops, said the New York Times. An article in the Conversation said that “even modest reductions in nitrogen use can produce disproportionately large declines in yield”. Elsewhere, a Carbon Brief Q&A looked at the impacts of the war on the energy transition and climate action.
WATER WORRIES: Water – already in short supply in Iran, where long-running droughts have been exacerbated by climate change – has come into renewed focus in the conflict. Bloomberg columnist Javier Blas said water could become the “geopolitical commodity that decides the war”. Desalination plants came “under attack” in Iran and Bahrain, reported the New York Times. These types of plants offer the “only reliable water source for millions across the Arabian Peninsula”, said the Independent.
Negotiations of seabed mining resume
LEGAL BRIEF: The International Seabed Authority (ISA)’s Legal and Technical Commission held a meeting in late February, where they made “progress” in reviewing applications for deep-sea mining exploration and the development of regional environmental management plans, according to an ISA press release. The ISA’s 36-member governing council is currently in Jamaica for a two-week meeting to discuss the future of deep-sea mining in areas beyond national jurisdiction.
NEW RULEBOOK: The New York Times interviewed Leticia Carvalho, head of the ISA, who said the long-awaited deep-sea mining rulebook should be finalised by the end of this year. She said the Trump administration’s push for deep-sea mining is making such an agreement more urgent than ever. However, Grist said that an advocate from French Polynesia said that he does not expect the regulations to be finalised this year, as there are several agreements and discussions pending, including on environmental protections.
INDIGENOUS DEMANDS: Indigenous advocates, who have long worked for their rights to be included in seabed mining regulations, are “bracing for the outcome” of the Jamaica meeting, reported Grist. Some fear that the incorporation of Indigenous rights into those regulations will be dismissed, as has happened previously, said the outlet.
News and views
- LAWS OF NATURE: The EU court of justice fined Portugal €10m (£8.7m) for “failing to comply with environmental laws that require it to protect biodiversity”, according to the Guardian. The newspaper said the country will be penalised until the 55 unprotected sites are protected under EU biodiversity law.
- BURIED REPORT UNCOVERED: Last week, a group of scientists and experts released a draft assessment about the health of nature in the US that had been cancelled by the Trump administration last year, according to the New York Times. The report is “grim, but shot through with bright spots and possibility”, said the outlet.
- ‘BI-OCEANIC’ RAIL: Experts are concerned about the potential social and environmental impacts of a train “mega-project” between Peru and Brazil, reported Mongabay. One researcher told the outlet that the possible rail routes, which cross through the Amazon rainforest, could cause “colossal environmental damage”.
- CLIMATE COOPERATION: India and Nepal signed an agreement to strengthen transboundary cooperation in topics such as climate change, forests and biodiversity conservation, reported the New Indian Express. The collaboration will include the restoration of wildlife corridors and knowledge exchanges, the outlet said.
- REPORT CARD: Carbon Brief analysis showed that half of the world’s countries met a 28 February UN deadline to report on national efforts to tackle nature loss. As of 10 March, 123 countries out of 196 had submitted their national reports, which will inform nature negotiations in Armenia later this year.
- CROP LOSSES: Down To Earth covered a study finding that a “deadly” virus is threatening cassava crops in parts of Africa, partly due to climate change. Meanwhile, Carbon Brief updated an interactive map showing 140 cases of crops being destroyed by heat, drought, floods and other extremes in the past three years.
Spotlight
Women farmers in a warmer and unequal world
International Women’s Day occurs every year on 8 March. Carbon Brief explores the impacts of climate change and gender inequality on women farmers and how they are adapting to a warming planet.
Women farmers play an essential role in global food supply.
According to a report from the UN Food and Agriculture Organization (FAO), around 36% of working women in 2019 were engaged in agri-food systems. On average, they earned 18% less than men in that sector.
The report found that women working in agriculture tend to do so “under highly unfavourable conditions”, including in the face of “climate-induced weather shocks”.
Typically, women farmers are concentrated in the poorest countries, produce less-lucrative crops and are often unpaid family workers or casual workers in agriculture, the report said.

Vulnerabilities
Research has shown that women farmers are more vulnerable to the impacts of climate change than men.
In Africa and Asia, for example, a 2023 study found that “climate hazards and stressors…tend to negatively affect women [in agri-food systems] more than men”. This is because gender inequality – in the form of discriminatory gender roles or unequal access to resources – is most pronounced in those regions, the study said.
A 2025 study focusing specifically on the Sleman region of Indonesia found that 63% of women farmers suffered from food insecurity due to vulnerability to climate change. This arises from both frequent exposure to drought and low ability to respond to climate impacts, the study explained.
Geraldine García Uribe has been a farmer at the U Neek’ Lu’um agroecology school in Yucatán, Mexico, since 2023. She told Carbon Brief:
“When you have fixed [planting and harvesting] cycles and you start to see changes in the climate – longer droughts or changes in rainfall patterns – plants take longer to grow and pests start to arrive, and that affects the farmers’ pockets and the livelihoods of [their] families.”
She added that women farmers also face inequalities when it comes to deciding how to manage agricultural lands:
“When government support comes, they take [women] less into account because, in general, there are more men present at meetings.”
Adaptation needs
Women farmers face constraints that make them less able to adapt to climate change, according to the FAO report. For example, the working hours of women farmers “decline less than men’s during climate shocks such as heat stress”, said the report.
Josselyn Vega has been farming on her own agroecology farm in Cotopaxi, Ecuador, for three decades. In the Andean region comprising Ecuador, Bolivia and Peru, droughts and floods are frequent, but there are also frosts which, although expected to decrease with climate change, cause crop losses and can have a “drastic” impact on the local economy, according to the Adaptation Fund.
Vega told Carbon Brief that her farm has used “living barriers” to help protect from weather extremes:
“Living barriers are a wall of forest and fruit trees [that] block the wind and prevent drought and frost from passing through.”
The 2023 study recommended that transforming agri-food systems into fairer and more sustainable ones requires reducing and preventing gender inequality.
At the international level, countries have an agreement to implement climate solutions that take women into account, including women farmers. At the most recent UN climate negotiations in Belém, Brazil, countries adopted a new gender action plan, which will last nine years and encourages countries to develop climate policies and plans with a gender perspective.
Vega said that public policies are needed to empower women farmers and ensure that they are included in decision-making. She told Carbon Brief:
“We need to benefit from something that encourages us to continue planting and caring for the land.”
Watch, read, listen
CASH CUTS: In a four-part series, BioGraphic explored how US federal funding cuts have impacted biodiversity and conservation.
RIGHT WHALE ROLLBACK: A News Center Maine video looked at how the US National Oceanic and Atmospheric Administration is considering rolling back a rule to protect endangered North Atlantic right whales in the US.
ON THE FARM: “Women farmers are an overlooked force in climate action,” the deputy director of the climate office at the FAO wrote in Reuters.
JUSTICE: Drilled marked the 10-year anniversary of the murder of Indigenous leader Berta Cáceres and looked at why Honduras is “still so dangerous for environmental activists”.
New science
- Large-scale reforestation in different parts of the world could bring “robust net global cooling” of -0.13C to -0.25C | Communications Earth & Environment
- Insects in many parts of the tropics have a “limited capacity” to deal with future projected warming levels | Nature
- The flowering time of tropical plant species has changed by an average of two days per decade since 1794 due to climate change | PLOS One
In the diary
- 9-19 March: Part one of the 31st session of the International Seabed Authority | Kingston, Jamaica
- 15 March: Republic of the Congo presidential election
- 22 March: World Water Day
- 23-29 March: Convention on the Conservation of Migratory Species of Wild Animals COP15 summit | Campo Grande, Brazil
- 23 March-2 April: Third session of the preparatory commission for the High Seas Treaty | New York
Cropped is researched and written by Dr Giuliana Viglione, Aruna Chandrasekhar, Daisy Dunne, Orla Dwyer and Yanine Quiroz.
Please send tips and feedback to cropped@carbonbrief.org
The post Cropped 11 March 2026: Iran water worries | Seabed-mining treaty progress | Women farmers and climate change appeared first on Carbon Brief.
Climate Change
Paris Agreement watchdog weighs action against countries missing climate plan
The Paris Agreement’s official oversight body is set to decide this month how to deal with over 60 countries that have still not submitted updated national climate plans, over a year after the deadline.
Composed of 12 experts from different regions of the world, the little-known Paris Agreement Implementation and Compliance Committee (PAICC) is tasked with ensuring that nations respect their obligations under the landmark 2015 climate accord.
The Paris Agreement requires each signatory government to submit climate plans known as nationally determined contributions (NDCs), setting out how they will help limit global warming to 1.5C above pre-industrial levels.
Governments also agreed in Paris that NDCs should be updated every five years and submitted 9–12 months before the next UN climate summit. For COP30, that deadline was 10 February 2025. But, over a year after that deadline, sixty-two countries have not yet produced an updated NDC including significant emitters like India, Vietnam, Argentina and Egypt.
PAICC cannot punish countries, but it can publicly reprimand them for their failure to file new NDCs and other transparency reports and ask them to explain themselves.
Concern over lack of responses
After the overwhelming majority of nations missed the February 2025 deadline to submit their NDCs, PAICC opened over 170 separate cases to engage with governments on why they had not yet issued a climate plan and what steps they were taking to address the delay. Cases are closed once countries submit their NDCs.
While the majority of countries responded to the panel’s enquiries, the PAICC’s annual report said that over 45 nations had failed to provide any information by October 2025. This raised the committee’s concern.
A PAICC member who did not wish to be named told Climate Home News that, while efforts to maintain an open dialogue will continue, the committee will now also discuss how to proceed further with countries that remain out of step with their commitments under the Paris Agreement. The committee will hold a meeting in the German city of Bonn, home to the UN climate change body, between 24-27 March.
“This is a new era, so every step we take we do it for the first time,” they said, adding that the actions the committee will take may vary from country to country, taking into account their individual circumstances.
Deciding next steps
Governments defined the committee’s mandate at COP24 in Katowice, Poland, in 2018 and produced a list of “appropriate measures” it can take to promote compliance with the Paris Agreement. Those include helping countries access technical help or finance, recommending the development of an action plan or “issuing findings of fact” when a country fails to submit an NDC.
The PAICC member said the committee still needs to determine exactly what the last option means in practice, but it will likely take the form of a public statement identifying countries that have failed to comply. The panel could potentially take other actions beyond those listed in its mandate as long as they are not punitive or adversarial.
“The legal obligations [of the Paris Agreement] are few and far between, so it is even more important to keep tabs on whether countries respect them,” the PAICC member added.
Andreas Sieber, head of political strategy at campaigning group 350.org, said national climate plans are “the currency of the Paris Agreement and how the world tracks progress and how countries plan their transitions”.
“Countries, especially the largest emitters, must honour their obligations under the Paris Agreement and submit credible NDCs,” he told Climate Home News, adding that the same applies to wealthy nations that have pledged climate finance.
Many reasons for delays
Many of the governments that have not yet submitted NDCs are low-emitting small or poorer nations, especially in Africa. But major economies that have not issued an updated climate plan – some of which also have energy transition deals with donors – include Egypt, the Philippines and Vietnam.
Countries without a new NDC contribute to 22% of global greenhouse gas emissions, according to data compiled by ClimateWatch.
In their discussions with PAICC over the past year, countries have cited a range of reasons for the delays, including financial constraints, technical challenges, limited data, changes in government, political instability and armed conflicts, according to the committee’s annual report.


India is the largest emitter without an NDC. At COP30 last November, the Indian government said that it would submit its climate plan “on time”, with environment minister Bhupender Yadav telling reporters it would be delivered “by December”. But that self-imposed deadline was not met.
The right-wing government of Argentina, which has considered leaving the Paris Agreement, unveiled caps on the country’s emissions for 2030 and 2035 in an online event on November 3, but has yet to formalise those targets in an NDC.
Undersecretary of the Environment Fernando Brom told Climate Home News that the country would present its NDC during the first week of COP30. That did not happen, although Argentinian negotiators participated in the climate summit.
Some local experts have pointed to the trade deal signed with the US in November as one of the reasons for the delay in submitting the NDC, while others cited the government’s disinterest in the climate agenda.
In January, the Vietnamese government said it was still working on the draft of its NDC, while the Philippines’ government has organised consultation events on its new NDC but has not indicated when it would be released.
The post Paris Agreement watchdog weighs action against countries missing climate plan appeared first on Climate Home News.
Paris Agreement watchdog weighs action against countries missing climate plan
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