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UK chancellor Rachel Reeves has delivered Labour’s first budget since 2009, promising to “fix the foundations” of the economy through increased investment in areas including clean energy. 

Announcing the budget in parliament, Reeves became the UK’s first-ever female chancellor to lift the “red box”. 

The “historic” budget confirms new “fiscal rules” that Reeves says will enable increased government investment, to support priorities including making the UK a “clean-energy superpower”. 

Despite speculation ahead of the budget, Reeves extended a 14-year freeze in fuel-duty that has cost the exchequer a cumulative total of £100bn and left overall UK carbon dioxide (CO2) emissions as much as 7% higher than they would have been. 

Elsewhere, the budget hiked taxes on private jets, extended incentives for electric vehicles, confirmed an increase in the rate of windfall tax on oil and gas companies and pledged investment in technologies including “green hydrogen” and carbon capture and storage. 

Below, Carbon Brief runs through the key announcements.

‘Fixing the foundations’

Reeves presented Labour’s first autumn budget in 14 years, following its sweep to victory in the general election in July. 

Much of the framing in the run-up focused on how the Labour government would go about tackling the “slow growth, stagnant living standards and crumbling public services” they put down to 14 years of Conservative rule. 

A few days before the budget, a government release stated that prime minister Keir Starmer would “reject austerity, chaos and decline in favour of economic stability, investment and reform”. The release said the budget would look to “fix the foundations” of the UK. 

One key announcement trailed before the budget was a change to the government’s self-imposed “fiscal rules”, which are supposed to ensure that the balance of public revenue, spending and borrowing remains on a stable footing.

This change in the way public debt is measured will allow the government to fund extra investment in infrastructure and public services.

The budget “red book” says that the government’s new “investment rule” is to reduce “public-sector net financial liabilities” as a proportion of the overall size of the UK economy, within three years of each budget forecast. It explains: “This rule keeps debt on a sustainable path while allowing the step change needed in investment.”

In an interview with BBC News in the week before the budget, Reeves had said the change was being done “so that we can grow our economy and bring jobs and growth to Britain”.

The International Monetary Fund (IMF) warned last week that public investment in new technologies and the energy transition is “badly needed”, in order to drive growth in the UK. 

Speaking in Washington at the IMF annual meeting earlier in October, Reeves had said she would target investment to drive innovation in the transition to clean energy and upgraded infrastructure as part of the budget.

She reiterated this message in her budget speech, saying that her plans would help in “delivering our [government’s] mission to make Britain a clean energy superpower”.

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Transport and fuel duty

Reeves announced a bundle of measures concerning transport, ranging from a tax hike on private jets to the confirmation of improved regional train lines.

One of the chancellor’s most high-profile and controversial moves was maintaining the freeze on fuel duty paid by motorists on petrol and diesel.

Successive Conservative-led governments have cancelled planned inflation-linked fuel duty increases every year since 2010, meaning rates have been slashed in real terms.

In 2022, fuel duty was also cut by 5p per litre in response to the global energy crisis – a temporary measure that was subsequently extended in the spring budget in 2023

As such, thinktank the Institute for Fiscal Studies (IFS) found that fuel duty was already 37% lower in real terms in 2023 than the rate planned in 2010. 

Successive cuts and freezes in fuel duty have increased the UK’s CO2 emissions by as much as 7%, according to Carbon Brief analysis in 2023. 

Moreover, the fuel-duty cuts and freezes have cost the Treasury a cumulative total of some £100bn since 2010, according to the official Office for Budget Responsibility (OBR).

Fuel duty is the “only major tax that persistently fell” in recent years, the OBR says. It adds that if fuel duty remains frozen, it would cost the Treasury a further £5bn a year by 2030.

In the lead-up to the autumn statement, speculation had grown that Reeves might end the temporary 5p cut in fuel duty and reinstate inflation-linked increases, which could have seen an overall hike of 8p per litre, from the current rate of 53p 

However, in the end, the government decided to once again freeze fuel duty and extend the “temporary” 5p cut “for one year, at a cost of £3bn next year”. It justifies this as a measure to support “hard-working families and businesses”.

Increasing fuel duty is very unpopular and there has been a strong lobbying effort to block it. The Sun, which is the UK’s most widely read newspaper, has sustained a “14-year campaign”, promoted by climate-sceptic motoring lobbyists and applauded by senior Conservatives, to keep fuel duty frozen.

As Carbon Brief analysis shows, the newspaper has significantly ramped up its efforts under the new Labour government – more than doubling the number of editorials urging the government not to end the freeze. The newspaper describes the idea as “unthinkable” and a “masterpiece of self-harm” that would harm “working people”.

Number of editorials in the Sun newspaper mentioning the fuel duty freeze, between 2020 and October 2024.
Number of editorials in the Sun newspaper mentioning the fuel duty freeze, between 2020 and October 2024. Source: Carbon Brief analysis.

Despite the framing by both the government and the Sun, analysis by thinktank the Social Market Foundation shows that the poorest households benefit far less from lower fuel duty than the richest, who tend to drive more and own more vehicles.

Ahead of the budget, Starmer announced that the single bus fare cap in England will be raised to £3. This is an increase from the current limit of £2, introduced under the Conservative government and set to expire in December. 

The government says this higher price will allow it to “develop a more sustainable model of government support for the bus sector that is better value for taxpayers and bus passengers”.

However, the choice came under fire from Green MPs and climate NGOs, particularly in light of the fuel-duty freeze. They noted that the cost of low-carbon transport, such as buses, has increased by far more than the cost of driving cars in recent years. It would have cost £300m  per year to extend the £2 bus fare cap, according to the New Economics Foundation.

The budget also commits to investing in a handful of new rail lines and upgrades, including the Transpennine Route Upgrade between York and Manchester and East West Rail to connect Oxford, Milton Keynes and Cambridge. There is also money for electrifying some lines.

Notably, the government also confirmed plans to fund the tunnelling of the HS2 line to central London. (The previous Conservative government significantly scaled back the HS2 project and said the final section going into central London would be dependent on private investment.)

The budget also includes adjustments to taxes on flights, with air passenger duty increased to “correct for below-inflation uprating in recent years” – equating to an extra £2 on short-haul flights in economy class. (In 2021, the Conservative government cut air passenger duty in half for domestic flights.)

A more dramatic change was a 50% increase in duty for “larger private jets”, which Reeves said would amount to £450 per passenger. The budget documents note that the government “will consult on extending this rate to all private jets within the air passenger duty regime”.

Finally, the government commits to extending the “advanced fuels fund” for an extra year to support the production of “sustainable aviation fuels”.

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Electric-vehicle incentives

The budget contains a number of commitments to support the rollout of electric vehicles, in line with the government’s target of ending the sale of pure petrol and diesel cars by 2030, and extending this target to vans by 2035.

Among these measures are tax incentives to encourage people to purchase electric vehicles.

The rapid growth in UK electric cars sales in recent years has been driven partly by company-car purchases, which have benefited from generous tax breaks for low-carbon models.

The budget confirms that benefit-in-kind (BIK) tax rates for company cars will continue to favour electric cars, increasing by 2% per year out to 2029-20. 

However, plug-in hybrid vehicles will no longer benefit, with rates increasing far more “to align more closely with rates for internal combustion engine vehicles”.

Another change in the budget involves increasing the gap between the rate of vehicle excise duty paid in the first year by electric vehicles relative to other cars. (First-year vehicle excise duty payments are based on a new car’s CO2 emissions.)

The first-year rate will remain frozen until 2029-30 for zero-carbon vehicles, while hybrids and internal combustion engine vehicles will see increases. Cars emitting more than 76g of CO2 per km will see their first-year rates doubling from 1 April 2025.

The budget also confirms that the government will extend, for a further year, “green” first-year allowances – which can be deducted from the full cost of profits before tax – for “qualifying expenditure” on zero-emission cars and plants or machinery for electric vehicle charging points.

Other measures in the budget include investing over £200m in 2025-26 to accelerate the rollout of electric vehicles charging points. There is also £120m to support people in purchasing electric vans through the plug-in vehicle grant scheme, and to support the manufacture of wheelchair accessible electric vans.

Looking more broadly at electric vehicle manufacture, the government has also committed £2bn in support for the automotive sector, “including the zero-emissions vehicle manufacturing sector and supply chain”.

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Clean-energy investment

Measures in the budget supporting clean energy and net-zero include funding for investment in carbon capture and storage (CCS), nuclear and “green hydrogen” made with renewable electricity.

In addition, the budget documents tout the government’s “national wealth fund” as a route to supporting private-sector investment in clean energy:

“[T]he government will take further measures to catalyse private investment in the economy. This includes creating the national wealth fund to catalyse over £70bn of private investment in the UK’s clean energy and growth industries.”

In her speech, Reeves said the budget confirmed plans to capitalise the national wealth fund, which would “invest in the industries of the future, from gigafactories [for batteries or electric vehicles] to ports to green hydrogen”.

Responding to the budget, Ed Matthew, campaigns director for thinktank E3G, said in a statement:

“After years of flatlining investment, the government must now seize the opportunity of the ‘investment rule’ to make the UK a clean-energy superpower and boost green homes investment further. It is clean technology where our future prosperity lies, boosting productivity, making us competitive and weaning us off expensive and volatile fossil fuels. It’s the economic opportunity of the century.”

Funding announcements include £3.9bn for CCS projects between 2025-2026. These will help “decarbonise industry, support flexible power generation, and capitalise on the UK’s geographic and technical strengths”, the budget notes.

This follows the government pledging up to £21.7bn to support getting the UK’s first CCS projects up and running over the next 25 years, in an announcement at the beginning of October. The nearly £22bn funding is designed to support the development of two undersea carbon storage sites and pipelines, with the capacity to store more than 8.5m tonnes of CO2 per year. 

The budget also includes support for the “first round of electrolytic [green] hydrogen production contracts, harnessing renewable energy to decarbonise industry across the length and breadth of the UK”. This will support 11 green hydrogen producers across the country.

Other key technologies to win support in the budget include nuclear, with a £2.7bn settlement announced to continue the development of Sizewell C through 2025-26.

In August, the government announced it would provide up to £.5bn, as part of a new subsidy scheme for the planned new nuclear power plant in Suffolk. 

The equity and debt-raise process for Sizewell C is set to move into its final stages and conclude in spring 2025. Following this, a final investment decision will be made.

Separately, the budget announces “significant support” for UK fusion energy research, “to build on the UK’s position as a global leader in sustainable nuclear energy”.

Great British Energy will receive £125m in funding for 2025-26, the budget notes. This follows news in July that the publicly owned energy company would receive an initial capitalisation of £8.3bn of new money over this parliament. 

The budget also confirms £163m in funding to continue the “industrial energy transformation fund” from 2025-26 to 2027-28. 

The budget states that the government will help accelerate grid connections and build new network infrastructure. The government is working with the new National Energy System Operator (NESO) and energy regulator Ofgem to develop a “robust grid connection” process. 

As part of the commitment to “securing the UK’s place as a global leader in clean energy, protecting consumers and driving economic growth” the budget also notes that the government has commissioned advice from NESO on reaching net-zero electricity by 2030. This will feed into the government’s own “clean-power 2030 action plan”.

Other key upcoming documents, noted in the budget and expected over the coming year, include a response to the annual progress report from the government’s advisory Climate Change Committee, an updated “carbon budget delivery plan” setting out how it will meet legally-binding climate goals and a new industrial strategy. 

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North Sea tax

The budget also confirms an increase in the windfall tax on oil and gas companies. The energy profits levy (EPL) will rise by three percentage points to 38% from 1 November.

Established in May 2022 in response to record profits enjoyed by oil and gas companies during the global energy crisis, the government announced the increase to 38% in July. 

The budget confirms that an “investment allowance” of 29% will be abolished, but the rate of the “decarbonisation allowance” will be set at 66%. No additional changes to the tax relief available through the EPL will be made, which has also been extended by a year to 31 March 2030.

Further to this, the budget says the government will publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks in the future.

Oil and gas company shares rose in response to the budget, according to the Financial Times, which says the changes to the EPL were “less tough than feared”. For example, Harbour Energy’s stock climbed 4.5% to 277p, according to the newspaper. 

At the same time as the budget, the government announced a consultation into “scope 3” emissions from offshore oil and gas production, meaning the emissions associated with burning resulting fuels.

This follows a “landmark” Supreme Court ruling earlier this year, which found that Surrey County Council had acted unlawfully by granting planning permission to the Horse Hill oil project without considering the environmental impact of burning the oil it would produce. 

The consultation will be part of efforts to develop new guidance for assessing the end-use emissions of oil and gas projects, as well as help “provide stability for the oil and gas industry, support investment, protect jobs and ensure a fair, orderly and prosperous transition”, the budget document says.

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Other announcements

The budget includes a number of other announcements relating to climate and energy.

One such measure is £3.4bn in investment towards a “warm homes plan” for heat decarbonisation and household energy efficiency over the next three years.

In its manifesto, Labour committed to £13.2bn of funding for these issues over the course of this parliament and the budget describes the £3.4bn investment as “the first step”.

The government says this money includes £1.8bn to support fuel-poverty schemes. It adds that it will increase funding for the “boiler upgrade scheme” – which supports the rollout of heat pumps in England and Wales – this year and next.

The budget also confirms £5bn over two years to support a “more productive and environmentally sustainable agricultural sector in England” and more than £400m for tree-planting and peatland restoration.

It adds that the government is “facing significant funding pressures” of almost £600m in 2024-25 for flood defences and farm schemes. The budget states that, “while the government is meeting those commitments this year, it is necessary to review these plans from 2025-26 to ensure they are affordable”.

The government also states that the Foreign, Commonwealth and Development Office (FCDO) is forecast to spend more than £2bn on international climate action in 2024-25. (The previous Conservative government had forecast a total international climate finance spend of £2.5-2.8bn in that year.)

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UN adopts first-ever resolution on AI and environment, but omits lifecycle

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The UN Environment Assembly on Friday approved its first-ever resolution to address the environmental aspects of Artificial Intelligence (AI), but it did not include a provision to monitor AI systems across their lifecycle. Experts say this approach is essential to understand AI’s water, power and critical minerals consumption.

The resolution proposed by Kenya aims to harness “the opportunities and benefits of artificial intelligence systems in support of the environment and by minimizing its environmental impacts”.

It also requests the UN Environment Programme (UNEP) to produce a report on the “environmental benefits, risks and impacts of artificial intelligence”.

As negotiations progressed over the week in Nairobi, the draft resolution on AI had called for UNEP’s executive director to explore environmental benefits, risks and impacts of artificial intelligence “systems across their lifecycle”.

However, while governments including Kenya, Norway, Colombia and the European Union supported such wording, annotated draft texts showed that Saudi Arabia, Russia and the United Arab Emirates wanted it to be deleted.

When the final resolution was gavelled on Friday, all trace of the AI lifecycle had been removed from the text. References to AI’s water and energy consumption – which featured in previous draft texts – were also removed.

    “We cannot talk about sustainable AI without addressing the full lifecycle, from the traceability of critical minerals, to the water used in data centres, to how much renewable energy is being redirected from developing countries to power AI systems in wealthier regions,” said Faith Munyalo, Kenya’s contact point on AI.

    Munyalo said that while the adoption of the resolution is an important first step, UNEA must now move forward in future negotiations to address the “blind spots” and deliver stronger language and clearer commitments on lifecycle accountability.

    “Sustainability must be built into AI from extraction to disposal, otherwise we risk repeating the same patterns of inequity seen in earlier technological transitions,” she told Climate Home News.

    No direct finance expected

    As the negotiations reached mid-way point on Wednesday, the AI resolution was on the brink of collapse, essentially over finance, which Saudi Arabia and Iran insisted should primarily flow from developed to developing countries while the UK and the EU argued funding should come from all sources.

    Finally, countries landed on a compromise that avoids any obligation for wealthy nations to directly finance AI capacity in the Global South. All countries instead are encouraged to “enhance partnerships” that can mobilise funding, alongside “increased investment, including from the private sector and philanthropy” in AI that supports sustainable development.

    AI is finding greater uses in environmental circles, and in developing countries it is already being deployed, boosting funding needs. For example, Sierra Leone in its new NDC climate plan needs almost $7 million, including from donor countries, to build an AI-based climate and weather forecasting system to improve resilience. Also, in Kenya, AI is helping conservationists monitor forest degradation, launch reforestation and predict carbon storage capacity in new forest areas.

    Kenya’s Munyalo said most data centres are concentrated in developed countries while Africa lacks the expertise and finance to develop its own AI data systems. A lack of direct funding promises puts the burden back on developing countries and could undermine environmental projects like these, she added.

    The closing plenary at the UN Environment Assembly in Nairobi on 12 December, 2025.
    The closing plenary at the UN Environment Assembly in Nairobi on 12 December, 2025. (Photo: UNEP)

    AI good or bad for energy transition?

    Somya Joshi, research director at the Stockholm Environment Institute (SEI), said AI has critical impacts both for climate and biodiversity and needs to be designed in ways that don’t “replicate the same mistakes we made before with extractive technology transitions”.

    The debate going forward will need to be informed by science and the environmental impacts along the entire AI value chain, she said, including for water, electricity, critical minerals and rare earths to make semi-conductor chips, as well as pollution and what happens to AI systems at the end of their life.

    Joshi said there is a need to prevent growing power demand from AI to reinforce dependency on fossil fuels, which would undermine the clean energy transition.

    UN Secretary-General António Guterres earlier this year made a call for Big Tech to power all data centres with 100% renewables by 2030.

    Data centres accounted for about 1.5% of the world’s electricity consumption in 2024. But this figure is set to more than double by 2030 as tech giants continue to build out the infrastructure needed to support their power-hungry AI technologies.

    While renewable energy sources – combined with batteries – are expected to supply half of the additional electricity, increased demand from data centres will be a “significant” driver of growth for fossil gas and coal-fired generation until the end of this decade, according to the International Energy Agency (IEA).

    As the Paris Agreement turns 10, what has it achieved?

    Geopolitics limit Nairobi results

    The resolution on AI was largely seen by observers as a win for the UNEA, which played out in a tense political environment that limited steps forward on a range of key environmental issues.

    The US rejected the outcomes, decrying what it called “climate change theatre”, in line with the denial of climate science by the administration of President Donald Trump and his efforts to thwart climate action.

    Behind the scenes, oil-rich Saudi Arabia and Türkiye – host of the COP31 climate talks next year – pushed to water down wording on climate change including the science of melting glaciers.

    This rejection of well-established evidence elicited strong criticism from small island nations Fiji and Barbados, as well as the European Union and Australia, in the final session of the conference. Speaking at the closing plenary, the EU delegate said the bloc had arrived at UNEA-7 with high hopes for the environment and multilateralism but have to come to terms with the fact that the Assembly could only achieve good results in some resolutions “and less in others”.

    There was also disappointment over a weak resolution on mining and transition minerals, which agreed only on further talks around international co-operation instead of setting up an expert group to identify new instruments to make supply chains greener and more transparent as proposed by Colombia and Oman.

    However, fears that some member states would use UNEA as an opportunity to reopen the mandate to negotiate a global treaty on plastic pollution did not come to pass, according to Andrés del Castillo, Senior Attortney at the Center for International Environmental Law (CIEL).

    Talks on a new pact were suspended in August as they were unable to reach agreement with fossil fuel-producing countries blocking proposed caps on plastic production – a major market for petrochemicals. They will resume in February with the election of a new chair.

    Del Castillo pointed to the ministerial declaration adopted in Nairobi on Friday, which reaffirms countries’ “shared commitment to engaging constructively and actively, with a sense of urgency and solidarity, to conclude the [plastics] negotiations”.

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    Push for global minerals deal meets opposition, more talks agreed

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    Countries gathered at the UN Environment Assembly (UNEA) this week failed to back a proposal to establish a panel of experts to look at ways to limit the environmental harm caused by mining, agreeing instead to hold more talks on tackling the issue.

    A draft resolution proposed by Colombia and Oman had sought to make mineral supply chains more transparent and sustainable amid booming demand for the minerals and metals needed to manufacture batteries, electric cars, solar panels and wind turbines as well as digital and military technologies.

    It had called for the creation of an expert group to identify options for binding and non-binding international instruments to shape global action.

    But amid divisions among nations and staunch opposition by some governments to any process that could eventually lead to binding instruments, country delegates meeting in Nairobi only agreed to a watered-down proposal to hold “dialogues” on “enhancing international cooperation on [the] sustainable management of minerals and metals”.

    Governments also agreed to discuss how to recover minerals from waste, known as tailings, best practices for the sustainable management of minerals and metals, and strengthening the technological, financial and scientific capabilities of developing countries.

      Pedro Cortes, Colombia’s ambassador to Kenya, told an event on Wednesday that the negotiations had been “difficult” but that the agreement will enable governments to continue the discussion.

      Mauricio Cabrera Leal, Colombia’s former vice minister of environmental policy who initiated work on the proposal last year, told Climate Home News that the outcome was not what he had envisaged but said it was “good” in light of the “hard” geopolitics at play in Nairobi.

      Colombia’s push for a minerals treaty

      Colombia has called for an international minerals treaty to define rules and standards to make mineral value chains more traceable and sustainable as the world scrambles to boost supplies of materials needed for the energy transition.

      For resource-rich developing countries, demand for these minerals is an opportunity to diversify their economies, spur development and create jobs. But the extraction and processing of minerals also brings the risk of environmental damage and human rights abuses.

      Victims of Zambian copper mine disaster demand multibillion dollar payout

      Ambassador Cortes told an event on the sidelines of the UNEA that more stringent global oversight was needed.

      “While various efforts have sought to promote the environmentally sustainable management of mining through voluntary guidelines, national legislations and industry-led initiatives, it is clear that greater international cooperation is needed at this critical moment to elevate ambition and accelerate action,” he said.

      “This action will be essential to balance the growing demand for minerals required for the renewable energy transition with the imperative of ensuring environmental integrity and social sustainability,” he added.

      Opposition to binding rules

      But numerous governments – including Saudi Arabia, Russia, Iran as well as resource-rich Chile, Peru, Argentina and some African countries such as Uganda – opposed any discussion of possible binding rules on mineral value chains, several observers with access to the negotiations told Climate Home News.

      While UNEA resolutions are not legally binding, they can kick off a process towards binding agreements, such as the launch of negotiations on a treaty to end plastics pollution – a process that has since stalled.

      China, which dominates the processing and refining of minerals and metals, stayed largely quiet during the negotiations. But Nana Zhao, an official from the Chinese delegation, told Climate Home News that China was “satisfied” with the wording of the resolution.

      The UNEA should stay focused on environmental matters and not bring in issues relating to supply chains, she added.

      The opening plenary of UNEA-7 in Nairobi, Kenya (Photo: IISD/ENB | Anastasia Rodopoulou)

      An opening for more co-operation

      Campaigners, who are calling for binding rules to prevent environmental and social harms linked to mineral extraction and processing, expressed disappointment at the agreement but welcomed the prospect of further talks on the issue.

      “The initial aim was to start with negotiations for [a] binding treaty and to get countries together to start talking about joint rules,” Johanna Sydow, a resource policy expert who heads the international environmental policy division of Germany’s Heinrich-Böll Foundation, told Climate Home News.

      The agreement reached in Nairobi is “very weak” compared to that initial proposal but it creates the “foundation to stay in dialogue and try to find solutions and work on something constructively”, she said. “This is an opening for more co-operation”.

      UN taskforce to deliver equitable supply chains

      On the sidelines of the assembly, UN agencies launched a taskforce on critical energy transition minerals to coordinate UN activities in building more transparent, sustainable and equitable supply chains.

      The taskforce will help deliver on recommendations by a panel of experts convened by UN Secretary-General António Guterres which called for putting equity and human rights at the core of mineral value chains.

      It will be chaired by the UN Environment Programme, UN Trade and Development (UNCTAD) and the UN Development Programme, and draw on expertise across the UN system.

        Inger Andersen, executive director of the United Nations Environment Programme, said the sustainable management of minerals cuts across trade, environment and development.

        “Multilateral cooperation and partnerships beyond the UN [are] absolutely essential for us to respond to what we can see is a driving demand and hunger for minerals and metals. But before we have a ‘race’ to this, let’s make sure we look at these aspects that can lead to injustice, environmental harms, biodiversity loss, water pollution and human rights [harms],” she added.

        Suneeta Kaimal, president and CEO of the Natural Resource Governance Institute and a member of the UN panel of experts, said the taskforce was “a timely and necessary step toward making the panel’s ambitions real”.

        “It must work boldly and inclusively with communities and civil society, and it will need political commitment and financial resources – not only technical efforts – to drive a just and equitable new paradigm that safeguards people, ecosystems and economies in producer countries,” she said.

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        DeBriefed 12 December: EU under ‘pressure’; ‘Unusual warmth’ explained; Rise of climate boardgames

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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

        EU sets 2040 goal

        CUT CRUNCHED: The EU agreed on a legally binding target to reduce greenhouse gas emissions by 90% from 1990 levels by 2040, reported the EU Observer. The publication said that this agreement is “weaker” than the European Commission’s original proposal as it allows for up to five percentage points of a country’s cuts to be achieved by the use of foreign carbon credits. Even in its weakened form, the goal is “more ambitious than most other major economies’ pledges”, according to Reuters.

        PETROL CAR U-TURN: Commission president Ursula von der Leyen has agreed to “roll back an imminent ban on the sale of new internal combustion-engined cars and vans after late-night negotiations with the leader of the conservative European People’s Party,” reported Euractiv. Car makers will be able to continue selling models with internal combustion engines as long as they reduce emissions on average by 90% by 2035, down from a previously mandated 100% cut. Bloomberg reported that the EU is “weighing a five-year reprieve” to “allow an extension of the use of the combustion engine until 2040 in plug-in hybrids and electric vehicles that include a fuel-powered range extender”.

        CORPORATE PRESSURE: Reuters reported that EU countries and the European parliament struck a deal to “cut corporate sustainability laws, after months of pressure from companies and governments”. It noted that the changes exempt businesses with fewer than 1,000 employees from reporting their environmental and social impact under the corporate sustainability reporting directive. The Guardian wrote that the commission is also considering a rollback of environment rules that could see datacentres, artificial intelligence (AI) gigafactories and affordable housing become exempt from mandatory environmental impact assessments.

        Around the world

        • EXXON BACKPEDALS: The Financial Times reported on ExxonMobil’s plans to “slash low-carbon spending by a third”, amounting to a reduction of $10bn over the next 5 years.
        • VERY HOT: 2025 is “virtually certain” to be the second or third-hottest year on record, according to data from the EU’s Copernicus Climate Change Service, covered by the Guardian. It reported that global temperatures from January-November were, on average, 1.48C hotter than preindustrial levels.
        • WEBSITE WIPE: Grist reported that the US Environmental Protection Agency has erased references to the human causes of climate change from its website, focusing instead on “natural processes”, such as variations in the Earth’s orbit. On BlueSky, Carbon Brief contributing editor Dr Zack Labe described the removal as “absolutely awful”.
        • UN REPORT: The latest global environment outlook, a largest-of-its-kind UN environment report, “calls for a new approach to jointly tackle the most pressing environmental issues including climate change and biodiversity loss”, according to the Associated Press. However, report co-chair Sir Robert Watson told BBC News that a “small number of countries…hijacked the process”, diluting its potential impact.

        $80bn

        The amount that Chinese firms have committed to clean technology investments overseas in the past year, according to Reuters.


        Latest climate research

        • Increases in heavy rainfall and flooding driven by fossil-fuelled climate change worsened recent floods in Asia | World Weather Attribution
        • Human-caused climate change played a “substantial role” in driving wildfires and subsequent smoke concentrations in the western US between 1992-2020 | Proceedings of the National Academy of Sciences
        • Thousands of land vertebrate species over the coming decades will face extreme heat and “unsuitable habitats” throughout “most, or even all” of their current ranges | Global Change Biology

        (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 bar chart showing the five factors that account for most of Earth's 'unusual warmth'.

        The years 2023 and 2024 were the warmest on record – and 2025 looks set to join them in the top three. The causes of this apparent acceleration in global warming have been subject to a lot of attention in both the media and the scientific community. The charts above, drawn from a new Carbon Brief analysis, show how the natural weather phenomenon El Niño, sulphur dioxide (SO2) emissions from shipping, Chinese SO2, an eruption from the Hunga Tonga-Hunga Ha’apai volcano and solar cycle changes account for most of the “unusual warmth” of recent years. Dark blue bars represent the contribution of individual factors and their uncertainties (hatched areas), the light blue bar shows the combined effects and combination of uncertainties and the red bar shows the actual warming, compared with expectations.

        Spotlight

        Climate change boardgames

        This week, Carbon Brief reports on the rise of climate boardgames.

        Boardgames have always made political arguments. Perhaps the most notorious example is the Landlord’s Game published by US game designer and writer Lizzie Magie in 1906, which was designed to persuade people of the need for a land tax.

        This game was later “adapted” by US salesman Charles Darrow into the game Monopoly, which articulates a very different set of values.

        In this century, game designers have turned to the challenge of climate change.

        Best-selling boardgame franchise Catan has spawned a New Energies edition, where players may choose to “invest in clean energy resources or opt for cheaper fossil fuels, potentially causing disastrous effects for the island”.

        But perhaps the most notable recent release is 2024’s Daybreak, which won the prestigious Kennerspiel des Jahre award (the boardgaming world’s equivalent of the Oscars).

        Rolling the dice

        Designed by gamemakers Matteo Menapace and Matt Leacock, Daybreak sees four players take on the role of global powers: China, the US, Europe and “the majority world”, each with their own strengths and weaknesses.

        Through playing cards representing policy decisions and technologies, players attempt to reach “drawdown”, a state where they are collectively producing less CO2 than they are removing from the atmosphere.

        “Games are good at modelling systems and the climate crisis is a systemic crisis,” Daybreak co-designer Menapace told Carbon Brief.

        In his view, boardgames can be a powerful tool for getting people to think about climate change. He said:

        “In a video game, the rules are often hidden or opaque and strictly enforced by the machine’s code. In contrast, a boardgame requires players to collectively learn, understand and constantly negotiate the rules. The players are the ‘game engine’. While videogames tend to operate on a subconscious level through immersion, boardgames maintain a conscious distance between players and the material objects they manipulate.

        “Whereas videogames often involve atomised or heavily mediated social interactions, boardgames are inherently social experiences. This suggests that playing boardgames may be more conducive to the exploration of conscious, collective, systemic action in response to the climate crisis.”

        Daybreak to Dawn

        Menapace added that he is currently developing “Dawn”, a successor to Daybreak, building on lessons he learned from developing the first game, telling Carbon Brief:

        “I want the next game to be more accessible, especially for schools. We learned that there’s a lot of interest in using Daybreak in an educational context, but it’s often difficult to bring it to a classroom because it takes quite some time to set up and to learn and to play.

        “Something that can be set up quickly and that can be played in half the time, 30 to 45 minutes rather than an hour [to] an hour and a half, is what I’m currently aiming for.”

        Dawn might also introduce a new twist that explores whether countries are truly willing to cooperate on solving climate change – and whether “rogue” actors are capable of derailing progress, he continued:

        “Daybreak makes this big assumption that the world powers are cooperating, or at least they’re not competing, when it comes to climate action. [And] that there are no other forces that get in the way. So, with Dawn, I’m trying to explore that a bit more.

        “Once the core game is working, I’d like to build on top of that some tensions, maybe not perfect cooperation, [with] some rogue players.”

        Watch, read, listen

        WELL WATCHERS: Mother Jones reported on TikTok creators helping to hold oil companies to account for cleaning up abandoned oil wells in Texas.

        RUNNING SHORT: Wired chronicled the failure of carbon removal startup Running Tide, which was backed by Microsoft and other tech giants.

        PARIS IS 10: To mark the 10th anniversary of the Paris Agreement, climate scientist Prof Piers Forster explained in Climate Home News “why it worked” and “what it needs to do to survive”.

        Coming up

        Pick of the jobs

        DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.

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        The post DeBriefed 12 December: EU under ‘pressure’; ‘Unusual warmth’ explained; Rise of climate boardgames appeared first on Carbon Brief.

        DeBriefed 12 December: EU under ‘pressure’; ‘Unusual warmth’ explained; Rise of climate boardgames

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