UK chancellor Rachel Reeves has announced new measures to cut energy bills alongside a “pay-per-mile” electric-vehicle levy as part of Labour’s second budget.
The policy changes are expected to cut typical household bills by around £134 per year, amid intense political scrutiny of energy prices and a government pledge to reduce them.
This cut is achieved through a combination of moving a portion of renewable-energy subsidies from bills to general taxation and ending a support scheme for energy-efficiency measures.
Reeves has also retained a long-standing freeze on fuel-duty rates on petrol and diesel, albeit with a plan to “gradually” reverse the extra cuts introduced under the previous government.
With fuel-duty receipts set to fall as people opt for electric vehicles, the government has also laid out its plan for an “electric vehicle excise duty” from 2028, to replace lost revenue.
The government has also announced new “transitional energy certificates” to allow new oil and gas production at or nearby to existing sites, as part of its plan for the future of the North Sea.
Below, Carbon Brief runs through the key climate- and energy-focused announcements from the budget.
- Energy bills
- Electric vehicles
- Fuel duty
- North Sea oil and gas
- Nuclear, ‘green finance’, critical minerals and rail
Energy bills
The chancellor used her budget speech to announce two major changes that will cut dual-fuel energy bills for the average household by £134 per year from April 2026.
The first is to bring the “energy company obligation” (ECO) to an end, once its current programme of work wraps up at the end of the financial year. This will cut bills by £63 per year, according to Carbon Brief analysis of the forthcoming energy price cap, which will apply from 1 January 2026.
The second is for the Treasury to cover three-quarters of the cost of the “renewables obligation” (RO) for households, for three years from April 2026. This will cut bills by £70 per year.
The total impact for typical households – those using gas and electricity – will be to cut bills by an average of £134 per year over the three-year period to April 2029.
(As explained in footnote 77 of the budget “red book”, this rises to an average of £154 per year, when including households that use electric heating and are not connected to the gas grid. This figure is then rounded to £150 per year in government communications around the budget.)
Notably, given the political attention on energy prices, this three-year period of discounted bills runs through to just before the next general election, which must be held by August 2029.
There has been furious debate over the past year over the causes and the most effective solutions to the UK’s high energy bills. A Carbon Brief factcheck published earlier this year showed that it was high gas prices, rather than net-zero policies, which has been keeping bills high.
Nevertheless, a politicised debate has continued and there has also been increasing attention on the factors that will put pressure on bills in the near future, such as efforts to strengthen the electricity grid.
At the same time, the advisory Climate Change Committee (CCC) has repeatedly advised the government that it should make electricity cheaper, as so much of the UK’s climate strategy depends on getting homes and businesses to use electricity for heat and transport.
The changes in the budget will go some way to addressing this.
Carbon Brief calculations show that they would cut unit prices for domestic electricity users by around 4p per kilowatt hour (kWh) – roughly 16% – from 28p/kWh under the next price-cap period from the start of 2026, down to around 23p/kWh.
However, the red book says the government wants to further “improve” the price of electricity relative to gas, often referred to as “rebalancing”. It explains:
“The government is committed to doing more to reduce electricity costs for all households and improve the price of electricity relative to gas…The government will set out how it intends to deliver this through the ‘warm homes plan’.”
Under ECO, which has been in place since 2013, utility firms must install energy efficiency measures in fuel-poor homes, funded by a levy on energy bills.
It replaced two earlier schemes, known as CERT and CESP, with reduced funding after then-prime minister David Cameron reportedly told ministers to “get rid of the green crap”. This shift coincided with a precipitous decline in the number of homes being treated with new efficiency measures.
The ECO scheme has been hit by a series of scandals, with a recent National Audit Office report citing “clear failures” in its design, resulting in “widespread issues with the quality of installations”.
Pre-budget media reports had speculated that the government would pay for ongoing energy efficiency initiatives after scrapping ECO, using funding from the forthcoming “warm homes plan”. This speculation had suggested that subsidies for heat pumps would be cut as a result.
Instead, the budget includes an extra £1.5bn of funding for the warm homes plan, to cover the additional cost of taking over from ECO. (The total cost of ECO was around £1.7bn.)
Adam Bell, head of policy at the consultancy group Stonehaven and the government’s former head of energy policy, tells Carbon Brief that, while this £1.5bn is not the total cost of ECO, the scheme had been “terribly inefficient”. He adds that a government-run alternative that tackles home upgrades on an area-by-area basis was “likely to be cheaper”.
Contrary to much pre-budget speculation in the media, the chancellor did not reduce the already-discounted 5% rate of VAT on energy bills. Nor did she scrap the “carbon price support”, a top-up carbon tax on electricity generators.
Finally, the budget red book says that the government “recently confirmed” an increase in the level of relief for certain industrial users, from electricity network charges.
It says that, in total from 2027, the “British industrial competitiveness scheme” will cut electricity costs for affected businesses by £35-40 per megawatt hour.
Electric vehicles
The budget confirmed the introduction of a new “pay-per-mile” charge for electric vehicles, to raise more than £1bn in additional tax revenue by the end of this decade.
It has long been expected that fuel-duty receipts will begin to fall as electric vehicles start making up a rising share of cars on the road.
In its report accompanying the budget, the Office for Budget Responsibility (OBR) forecasts a decline to around half of current levels in the 2030s in real terms, before falling to near-zero by 2050.
As such, the new charge on EVs will help maintain road infrastructure, the budget states. The “red book” notes that the new tax will see EV drivers paying a “fair share”. It adds:
“All vehicles contribute to congestion and wear and tear on the roads, but drivers of petrol and diesel vehicles pay fuel duty at the pump to contribute their fair share, whereas drivers of electric vehicles do not currently pay an equivalent.”
The electric vehicle excise duty (eVED) will come into effect in April 2028 at a rate of 3p per mile for battery electric vehicles and 1.5p per mile for plug-in hybrid cars, according to the OBR report.
The budget red book says this will mean the average driver of a battery electric vehicle paying “around £240 per year”. This is roughly half of the rate of fuel duty paid per mile by petrol and diesel car owners. (See: Fuel duty.)
(EVs will remain significantly cheaper to run than their combustion-engine equivalents. According to the Energy and Climate Intelligence Unit thinktank, EVs would still be £1,000 cheaper to run per year than petrol equivalents, even after the new eVED charge.)
Currently, there is no equivalent to fuel duty for electric vehicles. Excise duty was brought in for EVs for the first time in April 2025, costing £10 for the first year and then rising to a standard rate of £195 per year – an increase announced in last year’s budget.
The introduction of the eVED is expected to raise £1.1bn in 2028-29 and £1.9bn in 2030-31, dependent on electric-vehicle uptake in the coming years.

The revenue generated by the eVED will “support investment in maintaining and improving the condition of roads”, the budget adds, with the government committing to £2bn in annual investment by 2029-30 for local authorities to repair and renew roads.
A consultation will be published seeking views on the implementation of eVED, the budget notes. It adds that there will be no requirement to report where or when the miles are driven, or to install trackers in cars.
The OBR report states that the additional charge of the eVED “is likely” to reduce demand for electric cars, due to increasing their lifetime costs.
Overall, it estimates that there will be around 440,000 fewer electric car sales across the forecast period relative to its previous forecast.
New support for EV buyers and manufacturers also announced in the budget could help offset 130,000 of this impact, the report notes.
This includes a boost to the electric car grant, which was launched in July and currently offers up to £3,750 off eligible vehicles.
The budget announces an increase of £1.3bn in funding for the programme, as well as an extension out to 2029-30.
Additional measures include an increase in the threshold at which EV owners have to pay the “expensive car supplement” from £40,000 to £50,000 from April 2026. This is expected to cost the government £0.5bn in 2030-31, the OBR notes.
The government will delay changes to “benefit-in-kind” (BIK) rules for employee car-ownership schemes until April 2030. This is a continuation of a policy announced in Reeve’s first budget as chancellor in 2024, which delayed the previously planned increase in BIK rates to 9% per year for electric vehicles by 2029, instead increasing them to just 2% per year out to 2029-30.
EV manufacturers will see the research and innovation Drive35 programme extended, with a further £1.5bn allocated to the project to 2035. This takes total funding for the project to £4bn over the next 10 years, according to the government.
Beyond the vehicles, the budget includes investment for EV charging infrastructure – also partly funded through the eVED revenues, it notes – with an additional £100m allocated. This builds on the £400m announced in the spending review in June.
Additionally, funding will be allocated to local authorities to support the rollout of public chargepoints, a consultation will be launched on permitting rights for cross-pavement EV charging and a 10-year 100% business-rates relief for eligible EV chargepoints will be introduced.
Fuel duty
Former Conservative governments repeatedly cancelled inflation-linked increases in fuel duty – a tax paid on petrol and diesel – every year since 2010.
Fuel duty was cut by an additional 5p per litre in 2022 by then-Conservative chancellor Rishi Sunak in response to the energy crisis.
Successive freezes in fuel duty have substantially increased the UK’s carbon dioxide (CO2) emissions by lowering the cost of driving and, therefore, encouraging people to use their cars more and low-carbon transport options less.
Last year, Reeves opted to maintain the existing freezes and cuts introduced by her predecessors.
In the new autumn budget, she has once again announced a freeze on fuel-duty rates for an additional five months from April until September 2026.
Beyond that, the government says the 5p additional cut introduced in 2022 will be reversed – “gradually returning to March 2022 levels by March 2027”. However, the planned increase in fuel-duty rates in line with inflation for 2026-27 will be cancelled.
Then, from April 2027 onwards, the government says that fuel-duty rates will increase annually to reflect inflation.
In total, the 16 years of delays to expected increases in fuel duty rates – plus the “temporary” 5p cut – will have cost the Treasury £120bn by 2026-27, compared to the expected rise in line with inflation from 2010 onwards, according to the OBR.
Increasing fuel duty is very unpopular. However, research by the Social Market Foundation thinktank suggests persistent freezes have “done little for average Brits”, with the wealthiest in the country disproportionately benefiting.
Meanwhile, the government is also responding to the long-term decline in fuel-duty receipts “as more people choose to switch to cleaner, greener electric cars” by introducing a new per-mile charge on electric-vehicle use from 2028. (See: Electric vehicles.)
North Sea oil and gas
Much of the environmentally focused coverage previewing the budget centred on government plans to allow for new oil and gas production on or near existing field sites in the North Sea.
This was formally announced in the North Sea future plan, a 127-page document outlining the government’s approach to put the region “at the heart of Britain’s clean energy and industrial future” and “deliver the next generation of good, new jobs”.
(The plan was published in response to a consultation held earlier this year on the North Sea’s future, involving nearly 1,000 responses from stakeholders, including oil and gas companies and environmental groups.)
The future plan outlines that the North Sea is an ageing oil and gas basin, “much more so than other areas of the world”, and that production has been “naturally declining over the past 25 years”.
It includes the chart below, showing past and projected oil and gas production.

It adds that the decline of the basin caused direct jobs in oil and gas production to fall by a third between 2014 and 2023, according to official statistics.
The plan also has a section on the UK’s “proud history” of international climate leadership.
It notes that the UK is committed to the Paris Agreement, which has the aim to keep global warming to well-below 2C, while pursuing efforts to keep it at 1.5C, by the end of the century.
It continues:
“Scientific evidence from the International Energy Agency, UN Environment Programme and Intergovernmental Panel on Climate Change (IPCC) shows that new fossil fuel exploration risks exceeding the 1.5C threshold. The IPCC warns that emissions from existing fossil fuel infrastructure alone could surpass the remaining global carbon budget, reinforcing the urgency to phase out fossil fuels.”
The plan says that the UK “now has the opportunity to lead in clean energy”, which “is both a national and global imperative”.
With this backdrop, the plan reaffirms Labour’s manifesto commitment to not issue any new oil and gas licences.
However, the plan says that the government will introduce “transitional energy certificates” to allow new oil and gas drilling on or near to existing fields, as long as this additional production does not require exploration.
An analysis by the North Sea transition charity Uplift found that the amount of oil and gas that could be produced by such certificates is “relatively small”.
It suggested that new discoveries within a 50km radius of existing productions contain just 25m barrels of oil and 20m barrels of oil equivalent of gas.
(By comparison, the Rosebank oil field, which is currently seeking development consent from the government, would produce nearly 500m barrels of oil and gas equivalent in its lifetime.)
In a footnote on page 36, the plan says that these certificates will have no effect on the process for giving development consent to new oil and gas projects.
Last year, Carbon Brief reported that several large oil and gas projects are currently seeking development consent from the government.
Because they already have a license, these projects are able to get around Labour’s policy on not issuing any new oil and gas licenses and still seek final approval.
However, a landmark legal case in 2024 means that all of such projects, including Rosebank, will now have to present the government with information about how much emissions will come from burning the oil and gas they plan to produce, before they can be approved.
Responding to today’s budget news, Tessa Khan, executive director of Uplift, said that the “government is right to end the fiction of endless drilling”, but should “put an end to all new fields, including the huge Rosebank oil field”.
The North Sea future plan also says that the government will change the objectives of the North Sea Transition Authority, the government-run company that controls and regulates offshore oil and gas production.
Before the change, the NSTA was in the awkward position of being responsible for both ensuring the oil and gas sector reaches net-zero and maximising the economic recovery of oil and gas reserves from the North Sea.
Now, the government wants the NSTA to balance three objectives: to “maximise societal economic value”; support the energy secretary in meeting net-zero goals; and consider the long-term benefits of the transition for North Sea workers, communities and supply chains.
In addition, the North Sea future plan also announces that the government will establish the “North Sea jobs service”, a national employment programme offering support for oil and gas workers seeking new opportunities in clean energy, defence and advanced manufacturing.
Nuclear, ‘green finance’, critical minerals and rail
The section in the budget about “investing in the UK’s energy security” largely focuses on the government’s plans for nuclear power.
At the last spending review, the government announced £14.2bn of investment in the planned Sizewell C nuclear-power plant in Suffolk.
The plant is set to be supported under the “regulated asset base” (RAB) model, which levies an extra charge on consumer energy bills to support the cost of the development. OBR analysis concludes this will generate £0.7bn in receipts in 2026-27, doubling to £1.4bn in 2030-31.
The budget also says the prime minister is issuing a “strategic steer” on the “safe and efficient delivery” of nuclear developments through “proportionate regulation and stronger collaboration”.
It says the government will additionally issue an “implementation plan”, within three months, in response to the recently published report on nuclear regulation. It says it will “complete implementation within two years”.
The government has also updated its “green financing framework”, which sets guidelines for the type of expenditures that can raise funding from investors under the UK’s green financing programme. It has now added nuclear power to the list of eligible expenditures.
Other climate-related measures mentioned in the budget include regional funding, such as £14.5m for a new low-carbon industrial centre in Grangemouth, Scotland, and support for “critical minerals, renewable energy and marine innovation” in Cornwall.
This builds on the government’s “critical mineral strategy” released last week, which specifically highlights Cornwall as a site of “mineral wealth”, where mining for lithium, tin and tungsten is being undertaken.
The government has also announced a one-year freeze on rail fares, which it states could save commuters taking expensive routes “more than £300 per year”.
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Climate Change
Pacific leaders rail at climate finance failures after pre-COP trip to Tuvalu
After witnessing the effects of sea-level rise in the low-lying island nation of Tuvalu, Pacific leaders on Tuesday used the pre-COP31 summit in Fiji to voice their frustration at the difficulties they have experienced in tapping the global climate finance system.
A small group of government leaders, climate negotiators and heads of development banks and climate funds took a trip to Tuvalu’s Funafuti atoll on Tuesday morning, travelling by road over land just 10-20 metres wide to visit a project that is building barriers to keep the sea from the land.
They then flew to Fiji for the pre-COP summit, where several Pacific leaders said they had been let down by the insufficient quantity, bad terms and slow speed of international finance to help them adapt to a warming climate that is bringing higher oceans, drought and more powerful storms to their shores.
“Right now, our islands are like a canoe that has been rammed by a massive foreign ship. Our canoe is taking on water, we are sinking, and what is the world’s response?” asked Palau’s President Surangel Whipps Jr.
“They hand us a tiny patch to cover a gaping hole,” he continued, “but the bureaucratic process just to receive that patch is so slow that the water fills the hole while we wait. Then to rebuild the vessel so that we can survive the next storm, we are offered loans, debt that adds weight to a sinking boat packaged in red tape so thick we can barely access it. And while we wait, the water continues to fill.”

Pacific leaders and Australia called again on governments to invest in the new Pacific Resilience Facility (PRF), which has been designed by the Pacific Islands Forum and is seeking $500 million in investments by COP31 in November.
It has around $180 million so far, but did not receive additional pledges during the UN General Assembly in New York. The PRF aims to invest to generate annual returns which it can give to projects like water tanks for drought-hit communities.
Witnessing sea level rise
The annual pre-COP gathering is usually a low-profile technical meeting of climate negotiators. But this year, Australia – which is the president of negotiations at COP31 – partnered with the Pacific to introduce a “leaders segment” in an attempt to shine a spotlight on climate issues affecting the region.
Fourteen government leaders – from Australia, Timor-Leste, Mauritius and the Pacific – made the trip. They were joined by the European Union’s climate commissioner Wopke Hoekstra, the heads of the Green Climate Fund and the Asian Development Bank and former Australian prime minister Julia Gillard.

On their return to Fiji, Solomon Islands Prime Minister Matthew Wale told the pre-COP leaders roundtable that the sea level rise they had witnessed was personal for him.
“Tuvalu was not just a site visit for me. I saw the story of my own saltwater people,” he said, adding that he, his daughter and his grandfather had lost their houses to sea level rise and that three-quarters of his electorate live on land that will be underwater in the next 30 years.
From the other side of the world, Antigua and Barbuda’s environment minister Michael Joseph said Tuvalu’s problems felt similar to those of his own Caribbean islands. “I saw vulnerable communities… just metres from the sea and people determined to remain on their land, preserve their culture and way of life,” he said.

A group of Fijian schoolchildren told the leaders it was not just sea level rise the Pacific struggles with but also heatwaves, droughts and storms, which worry their families and prevent them from learning.
Climate finance red-tape
Several Pacific leaders criticised the world’s leaders for not doing enough to combat climate change. Cook Islands Prime Minister Mark Brown expressed disappointment that only two non-Pacific leaders had come to the pre-COP, a fact Australian media widely picked up on to label the event a flop and question its A$20 million (US$14m) price tag.
“We’ve heard a lot of numbers these last two days,” Brown said. “Let me share one of my own. More than 50 invitations extended to world leaders… to see for themselves what high emissions are doing to our nations and our ocean – an ocean that covers nearly one-third of the Earth’s surface.”
He called for more climate finance for the Pacific, asking “if the world is prepared to assess our suitability for climate finance, why is it not equally prepared to scrutinise whether those responsible for delivering it are meeting their obligations?”
Like Palau’s president Whipps, Naoero’s President David Adeang criticised the red tape that is hindering access to climate finance as well as a lack of money, complaining especially about “complicated procedures, heavy reporting, delays in approval and disbursement”.
Adeang added that “the way we assess vulnerability matters”, adding that it should be measured by more than income. Naoero, for example, is classified by the World Bank as high-income, restricting which climate finance it is eligible for.
Action plan to improve access
On Thursday, the Australian government will present a statement and action plan on improving access to climate finance for small island developing states and least developed countries, which it is asking other countries and organisations to endorse.
The statement addresses some of these Pacific complaints as well as acknowledging that progress has already been made on simplifying access by multilateral development banks and climate funds.
In Fiji, Asian Development Bank head Masato Kanda said his institution is “tailoring our finance and operations to island realities” because “your children and their children should be able to grow old in the countries their ancestors have called home for millennia”.
The executive director of the Green Climate Fund (GCF), Mafalda Duarte, said that the GCF-backed coastal adaptation project leaders visited in Tuvalu shows that “climate finance works” although – as the project took eight years to implement – “it takes time, and therefore we have no time to waste”.

Australia calls for optimism
While Pacific leaders expressed concern that the world is set to blast past its agreed 1.5C warming limit, endangering their nations, Australia’s Prime Minister Anthony Albanese called for “optimism”. “If people think there is no hope, then they will not strive to get the change that we need,” he said.
He said that when he attended his first COP in 2005, Australia’s renewable energy target was 2%. Its target is now 82% renewable electricity by 2030.
While Albanese promoted Australia’s success at electrifying homes and businesses and rolling out renewables, he has been criticised by climate campaigners for extending the production of fossil fuels, including coal – largely for export.

France’s Minister for Ecological Transition Monique Barbut defended the European Union’s climate action at the pre-COP meeting. She said the continent was heating up and reducing emissions faster and providing more climate finance than anywhere else in the world.
“It is time for all major emitters to step up and do their fair share” on climate finance, she said. Most developing countries with large emissions have fiercely resisted joining the club of climate finance donors, arguing they have played a disproportionately small historic role in causing climate change.
Barbut, as well as Palau’s president Whipps, called for the next flagship scientific assessment report of the Intergovernmental Panel on Climate Change (IPCC) to be finished by COP33 in 2028, in time to inform the next global stocktake of national climate action.
This timeline has been opposed by countries like India, Saudi Arabia and China, who argue it would put an unfair burden on developing countries. Barbut said countries should “support the work of the IPCC rather than sabotage its calendar”.
Barbut said that governments should agree at COP31 to aim to raise the share of “clean electricity” in final energy consumption to 35% by 2035. The Turkish and Australian governments have pushed for this goal although without specifying that the electricity should be “clean”. Barbut added that COP31 should also agree to cut emissions of methane, a particularly potent greenhouse gas.
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Pacific leaders rail at climate finance failures after pre-COP trip to Tuvalu
Climate Change
Coal mines and hypocrisy must not be Australia’s COP31 legacy
Jacynta Fa’amau is a Pacific campaigner at global grassroots climate movement 350.org and a secretariat member of Pacific Climate Warriors.
The first thing that struck me was the sheer size of Queensland’s Saraji coal mine. Standing at the edge of the enormous pit, my brain scrambled for words as I scanned the earth’s open wound – a whole island could probably fit inside it.
Looking down, I noticed footprints of an emu and a koala, pressed and dried in what was once a puddle – signs of how drought had driven animals in desperate search of water, so dangerously close to the coal trucks and heavy machinery ahead.
Earlier this year, I joined a small group of Pacific Islanders on a journey through the Bowen Basin to learn from First Nations communities battling Australia’s mammoth coal industry. Of the more than 40 coal mines operating in the area, BHP & Mitsubishi Alliance’s Saraji mine is one of the largest. So it came as a painful shock to us when in August, the Australian government approved the mine’s extension just months after our visit.
Witnessing coal extraction is devastating. It is bad enough to see what pillaging tonnes of coal can do to a mine’s immediate surroundings: dry creek beds, dwindling wildlife, denuded land. But to know that this coal will be shipped across the ocean, bring air pollution, and eventually lead to the destruction of Pacific islands thousands of miles away is another kind of heartbreak.
Rising ocean waters
I’m an Australian-born Samoan. In 2002, I visited my family home for the first time. My father took me to the rural community where generations of my family were raised. He did not have the words to describe how much has changed since rising ocean waters had taken away almost a third of the beach.
I learned of how we had to relocate my great‑great‑grandparents’ grave to higher ground twice in the last 15 years. Of how my cousins have to paddle out further to sea to catch fish, since warmer waters have destroyed much of the reef. Of how the ocean crashes so close to my uncle’s home that he had to build a new house further away.


We saw reflections of our own climate destruction in the Pacific when we shared these stories with our First Nations relatives at the edge of the Saraji mine. Murrawah Johnson and Teila Watson, both Birri Gubba and Gangulu women, made clear connections between their struggles and ours. “We don’t get to inherit our land and we don’t get to inherit our traditional roles. We are fighting a war on extinction,” Murrawah said.
Coal extraction devastated their lands and cultures – totems have disappeared, fresh water has become scarce – while the effects of using it have devastated ours. “King tide, cyclones, all the violence that has been enacted on your country and people is because of the violence that has been allowed here, to us and our country,” Teila said.
Wearing the mantle of climate leadership
This week, Australia is assuming the mantle of climate leadership as co-president and head of negotiations of this year’s UN Climate Change Conference, COP31. It will lead on deliberating the summit’s priorities as world leaders and climate negotiators descend on Fiji and Tuvalu for the pre-COP meetings.
Ironically, just days before the pre-COP began, the New South Wales Independent Planning Commission approved the largest-ever coal project the state has seen, set to emit an extra 800 million tonnes of carbon emissions. I joined the Pacific Climate Warriors and other communities in submitting about 4,000 appeals to oppose the project – yet these all fell on deaf ears.
But the fight is not yet over. The project still requires federal approval to proceed, so every promise that Australia makes while at the helm of the climate talks counts. These promises will be measured against actual decisions it makes at home: to either lock us into more decades of climate pollution, or begin shutting down coal and gas once and for all.
Pacific leaders have made it clear that countries must align their policies with the 1.5-degree warming goal, a limit that we already know will be breached within the decade. Any chance of keeping this still within reach requires an immediate end to fossil fuel expansion and concrete plans to phase out existing projects. But success will be an uphill battle if COP31’s own head of negotiations refuses to lead by example.


Australia remains the second-largest coal exporter in the world. It is one of the very few industrialised countries under the Paris Agreement’s Annex I that still has no coal phase-out plan. Since 2022, the Albanese government has approved 37 new, expanded or extended coal, oil and gas projects. It is thus unsurprising that its own mitigation policies have been rated by Climate Action Tracker as “insufficient”, even without factoring in fossil fuel exports and related expansion.
Keeping 1.5C alive
Australia must course-correct to earn the mantle it has been given, especially by Pacific nations that backed the country’s bid for the COP31 co-presidency. As a first step, the government must end all coal expansion and explicitly declare a coal phase-out date. It’s the only way to show that it’s capable of leadership that moves beyond endlessly deliberating the “if”, and starts implementing the “how” of keeping the 1.5C target alive.
The dread I felt staring down at the abyss on the edge of that coal mine months ago still exists. I carry it with me as I show up at the pre-COP to demand that leaders heed the calls of Pacific people. But it is tempered with resolve to keep our lands and communities alive. We remain steadfast in our efforts to secure an outcome that protects people everywhere and brings us back below 1.5 degrees as soon as possible.
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Coal mines and hypocrisy must not be Australia’s COP31 legacy
Climate Change
Race to host High Seas Treaty HQ heats up as Chile reaffirms bid
When José Antonio Kast took office as Chile’s new president in March, one of his first moves was to put the brakes on plans to expand two protected marine parks – raising doubts about the country’s high-profile bid to host the headquarters of the High Seas Treaty.
But during the UN General Assembly last month, the right-wing leader reaffirmed his leftist predecessor’s ambition for Chile to host the landmark global pact, which came into effect in January and provides a legal framework to protect the waters of the high seas beyond national jurisdiction that cover about two-thirds of the world’s oceans.
Hailing the country’s “maritime vocation”, Kast’s government said the bid to host the treaty’s secretariat in the port city of Valparaíso was state policy and testament to its commitment to multilateralism.
“For the government of Chile, it is of high interest to achieve this recognition, and we will carry out all the efforts to obtain the necessary support,” Foreign Minister Francisco Pérez Mackenna was quoted as saying by local media.
Tough competition from Chinese, Belgian bids
But to garner the votes it needs, Chile must fend off competing bids by Belgium – which has proposed its well-connected capital, Brussels – and China, whose well-funded bid includes the provision of free premises in the coastal city of Xiamen and five years of free utility costs.
Parties to the treaty, formally called the Agreement on Marine Biological Diversity of Areas Beyond National Jurisdiction (BBNJ), will choose the headquarters at their first summit (COP1), in New York from January 11 to January 22, 2027. They will seek consensus, falling back on a two-thirds majority in successive secret ballots.
Chile has offered to provide a restored waterside warehouse “at its own expense” as office space, pitching itself to developing countries as a Global South alternative to Europe-centred Brussels. Among richer countries, it is promoting its democratic credentials and greater transparency as an alternative to China.
Rolling back environmental safeguards at home?
While the South American country remains the top pick among environmental campaigners and other civil society groups, critics of Kast’s government say recent policy moves may make it harder for the country to garner the support it needs.
On March 12, the day after Kast took office, the Environment Ministry withdrew 43 decrees awaiting legal approval, including a push to expand the Mar de Juan Fernández and Nazca-Desventuradas marine parks – vast protected areas in Chile’s Pacific Ocean waters. Both remain under review, the ministry told Climate Home News.
The decrees also included an emission standard for coal power plants and regulations for Chile’s new biodiversity and protected areas service.
A month after holding up the decrees, Kast questioned aspects of Chile’s urban wetlands protection law, suggesting it was sometimes an unjustified obstacle to much-needed housing development, and his administration has also sought to ease the rules on salmon farming in the world’s second-largest producer.
In August, the Constitutional Court struck down the salmon farming reform after a challenge by opposition lawmakers and warnings from green groups including Greenpeace, which said it could help farms relocate into protected areas such as the Kawésqar National Reserve.
Valparaíso mayor Camila Nieto, from former leftist President Gabriel Boric’s party, backs the bid to host the High Seas Treaty, but said she hoped “the government’s support also translates into public policies consistent with the goals of protecting and conserving the oceans”.
“The decisions a country makes on environmental matters can influence international perceptions of its commitment to protecting the oceans. That is something we cannot ignore,” Nieto told Climate Home News.

China’s bid stirs concerns over data access, fishing
Chile’s past record on marine protection – it has protected 43% of its jurisdictional waters – could yet give it an edge.
“Chile deserves it for its conservation record as a state. For more than 15 years Chile has been following this path,” Liesbeth van der Meer, executive director at conservation group Oceana in Chile, told Climate Home News.
Concerns in some quarters about the rival bid by China – for example, over a potential conflict of interest due to the vast Chinese fishing industry – may also weigh in Chile’s favour, experts say.
Chinese-flagged vessels did about 30% of detected high seas fishing between 2022 and 2024, according to an Oceana analysis of Global Fishing Watch data. China also sponsors five of the International Seabed Authority’s 31 deep-sea mining exploration contracts, more than any other country.
The secretariat would host sensitive marine data, making transparency paramount, experts say.
China says hosting the secretariat in Xiamen would help make the treaty more globally representative, fostering cooperation between rich and developing countries and aiding equitable access to marine science and technology.
Wang Yi, China’s minister of foreign affairs, said in a statement that the country has “all along championed true multilateralism” and “firmly defended” UN institutions. Given Xiamen’s $38-billion ocean industry, the city lives up to the treaty’s “significance and promising future”, he added.
Meanwhile, Chile is proposing the treaty’s first high seas marine protected area for the Salas y Gómez and Nazca ridges, a chain of more than 110 seamounts stretching about 4,000 km from off Peru to Rapa Nui (Easter Island) that is rich in endemic fish and other marine species.
The ridges are “a true oasis of productivity”, said Carlos Gaymer, director of the Centre for Ecology and Sustainable Management of Oceanic Islands at Universidad Católica del Norte and co-author of a 2021 scientific review of the area.

The water is so clear that phytoplankton thrive around 200 metres down, feeding zooplankton, small fish and, up the chain, sharks and seabirds. Whales, turtles and sharks use the ridges as “a real highway” across the Pacific, Gaymer said. Parts of the Nazca ridge are likely nursery grounds for jack mackerel and swordfish.
Chile has already asked the body that regulates the industry in the area – the South Pacific Regional Fisheries Management Organisation (SPRFMO) – to close the ridges to all fishing vessels. According to Chilean data, more than 80% of fishing in the area involves Chinese vessels.
Meeting on the Chilean request in early September, SPRFMO’s scientific committee agreed only to recommend closing the area to bottom fishing. SPRFMO’s commission will take the final decision at its next meeting, in early 2027.
For Gaymer, Chile’s push to close the area to fishing should be seen as a “starting point” for the treaty proposal.
“Every time there’s a new expedition, species new to science appear,” Gaymer said. “If you don’t protect areas like these … those species simply disappear from the planet.”
The post Race to host High Seas Treaty HQ heats up as Chile reaffirms bid appeared first on Climate Home News.
Race to host High Seas Treaty HQ heats up as Chile reaffirms bid
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