UK chancellor Rachel Reeves has unveiled the first spending review under the current Labour government, announcing funding for nuclear power, energy efficiency and carbon capture and storage (CCS).
A spending review establishes each ministry’s spending limits and priorities for the rest of the parliamentary term.
The Department of Energy Security and Net Zero (DESNZ) received one of the largest jumps in capital spending, despite energy secretary Ed Miliband reportedly being one of the last to agree to a spending settlement.
Before the final details had been announced, the Times was describing Miliband as one of the “biggest winners” from the process.
High-profile funding announcements in the Treasury’s spending review include £14.2bn for the Sizewell C new nuclear power plant in Suffolk, the first state-backed nuclear power station for decades.
Elsewhere, two new CCS clusters – Acorn and Viking – were allocated funding and railways across the nation were given a boost.
Below, Carbon Brief runs through the key announcements.
- Departmental spending
- Energy efficiency
- Energy infrastructure investment
- Transport
- Other announcements
Departmental spending
Spending reviews are an opportunity for governments to stake out their priorities by setting the budgets for departments over the rest of this parliament.
Reeves’ spending review has been viewed by experts and media commentators as an opportunity to boost Labour’s flagging popularity and pursue some of its key manifesto commitments, including net-zero.
It covers plans for departmental “resource” spending – including day-to-day running costs – out to 2028-29 and “capital” spending out to 2029-30.
The latter includes injections of funding for infrastructure and public services, such as major clean-energy and transport projects.
In her speech launching the review, Reeves did not specifically mention the terms net-zero or climate change, but stressed the importance of achieving energy security via domestic, low-carbon power. “Clean energy” also featured prominently in the review document itself.
Overall, total departmental budgets are set to grow by 2.3% in real terms across the spending review period.
The Department for Energy Security and Net Zero (DESNZ) is expected to see a 16% increase in overall departmental spending, reaching £12.6bn in 2028-29.
(This does not include the boost in funding for Sizewell C nuclear plant, which will see a 15.6% increase thanks to a £14.2bn investment over the next five years. See: New nuclear.)
The chart below – taken from the spending review document – shows that while the absolute increase in spending on areas such as health, defence and education is higher, DESNZ is among the most highly prioritised in relative terms.
The review document emphasises that this increase in public money is necessary to mobilise private investment and “secure the UK’s electricity system with homegrown, clean power by 2030”.
Other departments that are also relevant for climate action have not seen the same overall increases in budget.
The Department for Transport (DfT) is set to see its overall departmental spending drop by 0.4%. However, the review notes that capital spending will increase, including more money for local low-carbon transport options and major rail projects.
The Department for Environment, Food and Rural Affairs (Defra) budget is also expected to fall overall, but support for “nature-friendly farming” is set to more than double over the review period.
Energy efficiency
Leading up to the spending review, there had been speculation that the government might cut plans to invest £13.2bn on upgrading the nation’s homes under its “warm homes plan”, which had been a manifesto commitment ahead of last year’s election.
Such a move could have cost households more than £1.4bn a year in avoidable energy bills, according to analysis from thinktank the Energy and Climate Intelligence Unit (ECIU).
However, the spending review confirmed the pledged £13.2bn in funding for the scheme, covering spending between 2025-26 and 2029-30.
The government says this will help to cut bills by up to £600 per household through energy efficiency measures, heat pumps, solar panels and batteries. It will also help support tens of thousands of jobs across the country, the spending review adds.
According to innovation agency Nesta, the warm homes funding is roughly double the previous government’s commitment, amounting to a £6.6bn increase in government spending on home upgrades over the current parliament, compared with the previous one.
It will see around one-fifth of the nation’s housing stock upgraded by 2029, although to a varying degree.
Responding to the announcement, trade association Energy UK’s chief executive Dhara Vyas said in a statement:
“It’s also very important that millions of customers will see a direct benefit from today’s announcements. By reaffirming the funding to improve the energy efficiency of millions of homes and supporting the switch to cleaner heating alternatives, customers can expect warmer and more comfortable homes, cleaner air and cheaper bills – showing how the energy transition can improve their daily lives.”
Funding for the warm homes plan in the spending review follows £3.4bn in investment announced for the scheme at the autumn budget in 2024. At the time, Labour had said that this was just the “first step” in investment for decarbonisation and household energy efficiency within the scheme.
Further details for the warm homes plan will be confirmed in October, the spending review says.
Beyond energy efficiency, Reeves announced what she called the “biggest boost to investment in social and affordable housing in a generation”, confirming £39bn in funding for a 10-year affordable homes programme.
This will nearly double government spending on affordable housing, according to reporting earlier this week.
Miliband recently announced changes to the “future homes standard” that will mean almost all new homes will have to be built with rooftop solar as a default, high levels of energy efficiency and low-carbon heating, such as heat pumps.
As such, new properties built under the affordable homes programme will largely have to include energy efficiency measures and low-carbon energy technologies.
Energy infrastructure investment
GB Energy
The spending review also confirms that it will allocate £8.3bn in funding for Great British Energy (GB Energy) and the linked GB Energy – Nuclear, another manifesto commitment.
It says this has been achieved by allocating £9.6bn in “additional financial transactions, such as loans and equity investments, to support growth”.
(It explains that “financial transactions” are designed to “allow government to invest alongside the private sector, through equity investments, loans and guarantees”. The document also says that GB Energy will be designated as a “public financial institution”.)
In addition to this top-line confirmation for GB Energy, the spending review also gives it an extra £300m in support for offshore wind supply chains.
This forms part of the “government’s investment in resilient and clean energy security, boosting domestic jobs, mobilising additional private investment and securing manufacturing facilities for critical clean energy supply chains such as floating offshore platforms”, it notes.
The spending review confirms up to £80m for port investment to support floating offshore wind deployment in Port Talbot in Wales, subject to final due diligence.
GB Energy funding follows on from Labour’s manifesto, promising investment into technologies such as floating offshore wind, as well as partnering with local authorities and the private sector to support the deployment of mature technologies.
New nuclear
Ahead of the spending review, the chancellor announced a £14.2bn investment in the planned Sizewell C new nuclear power plant in Suffolk.
The plant is being jointly developed by the UK government with French state-owned utility firm EDF Energy, which is already building the Hinkley C plant in Somerset.
Each new plant will have a capacity of 3.2 gigawatts (GW), enough to power six million homes. During its construction, Sizewell C will provide 10,000 jobs, including 1,500 apprenticeships, according to the government.
In a statement earlier this week, energy secretary Ed Miliband said new nuclear was needed for energy security, lower bills and to help cut emissions. He said:
“We need new nuclear to deliver a golden age of clean-energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.
“This is the government’s clean energy mission in action- investing in lower bills and good jobs for energy security.”
Speaking on BBC Radio 4’s Today programme following the investment announcement, Miliband stated that China would not be able to invest in the new nuclear plant in Suffolk. He further clarified that, while the majority of the investment would come from the UK government, there will also be private investment announced at a later date.
Sizewell C will be one of the first new nuclear power stations in the UK in decades, with no new nuclear power plants having opened since 1995 and all but one of the existing fleet expected to retire by the early 2030s.
The under-construction plant at Hinkley Point C is also being developed by EDF and is expected to serve as a “blueprint” for Sizewell C.
The Hinkley C plant is being funded via a “contract for difference” (CfD), under which EDF is responsible for the upfront investment costs, but will receive £92.50 per megawatt hour (MWh, 2012 prices) for each unit of electricity generated. (This will drop to £89.50/MWh in 2012 prices as a result of the Sizewell C project going ahead.)
EDF has reportedly accepted that Hinkley C will cost more than £40bn to complete, but has “rejected claims” that the Sizewell C scheme would cost a similar amount.
Sizewell C is due to be funded under the “regulated asset base” (RAB) model and so will not receive a CfD, but the details of this deal are not yet available. The final investment decision on the project is due later this summer, according to reports.
Additionally, the government announced Rolls-Royce has been selected to build small modular nuclear reactors (SMRs) following a “rigorous” two-year competition.
Rolls-Royce will partner with Great British Energy – Nuclear as part of the government’s industrial strategy, which will see £2.5bn invested over the spending review period.
The firm is expected to build three SMRs, with the first connecting to the grid “in the mid-2030s”, according to Rolls-Royce.
The spending review also included over £2.5bn for nuclear fusion. This will include support for the design and build of a prototype energy plant in Nottinghamshire.
The document notes that the government is providing a “pathway for privately led advanced nuclear technologies”, although details are not elaborated.
Great British Energy – Nuclear will shortly publish a new framework with the National Wealth Fund for exploring further investment opportunities for viable nuclear projects.
The spending review includes £13.9bn for the Nuclear Decommissioning Authority, to keep “former nuclear sites and facilities safe and secure as it decommissions sites and manages nuclear waste”.
Carbon capture and storage
The UK has already pledged “up to” £21.7bn of funding over 25 years to support five carbon capture and storage (CCS) projects, involving “clusters” of connected facilities.
Most of this funding will come from levies on consumers, but the government has also been gradually announcing chunks of public investment to get these initiatives off the ground.
The spending review allocates another £9.4bn of capital spending by 2029. This will partly go towards “maximis[ing] deployment to fill the [CO2] storage capacity” of the first two funded clusters.
At the same time, the government also confirmed its support for the next two clusters – Acorn in north-east Scotland and Viking in the Humber in the spending review. These projects are set to be up and running in the 2030s.
The review states that the government is providing the “development funding to advance [the] delivery” of these clusters, with a final investment decision expected “later this parliament, subject to project readiness and affordability”.
Pathways set out by government advisors at the Climate Change Committee (CCC) suggest CCS is required to meet the UK’s net-zero targets.
However, the government has faced intense scrutiny over its investments in CCS. A report by the influential Public Accounts Committee earlier this year said investing public funds in this relatively undeveloped technology was a “high risk” approach.
Transport
The spending review includes a number of commitments for regional transport projects that could help cut UK emissions, including rail upgrades, bus lanes and cycleways.
Overall, the Department for Transport (DfT) settlement will reach total funding of £31.5bn in 2028-29, a slight increase from current levels. This includes support for the HS2 high-speed rail project.
HS2, which had its second phase out to Manchester cancelled under the Conservatives in 2023, will see its funding drop over the spending period.
Meanwhile, capital spending on transport projects around the country is set to experience a 4% real-terms growth rate each year out to 2029-30.
Regional transport projects receiving funding include the TransPennine Route Upgrade between York and Manchester, with £3.5bn, as well as £2.5bn for East-West Rail between Oxford and Cambridge and £300m for rail investment in Wales.
(For comparison, despite the declining funds, HS2 will receive £25.3bn over the period.)
Other relevant investments in the spending review include a commitment to “more than double” city region transport spending per year by 2029-30, by providing a total of £15.6bn for elected mayors across England. The review says this could go towards local transport priorities, including “zero-emission buses, trams and local rail”.
Additionally, there is another £2.3bn allocated for investment in local transport grants to support “bus lanes, cycleways and congestion improvement measures” for areas outside the larger regions with mayors.
The review includes a relatively small sum – £2.6bn – of capital investment that is set aside to “decarbonise transport” as “part of the government’s clean energy mission”.
This is made up of £1.4bn to “support continued uptake” of electric vehicles, in particular vans and heavy goods vehicles (HGVs), as well as £400m for charging infrastructure and £616m for walking and cycling infrastructure.
Some of these funds will also support the production of “sustainable” aviation fuel (SAF) in the UK by extending the government’s advanced fuels fund.
The spending review also includes funding for transport projects that may not help to decarbonise the nation’s transport. Notably, there is £24bn of funding by 2030 to “maintain and improve motorways and local roads across the country”.
Also, while the project is not mentioned in the spending review document itself, Reeves’s speech mentioned “backing Doncaster airport” alongside “investment to connect our cities and our towns”. (The airport is currently closed, but there has been a local political effort to reopen it.)
Other announcements
R&D funding
The government is increasing research and development (R&D) funding to £22.6bn per year by 2029-2030.
This will include funding for the UK’s science base, the spending review says, such as the non-departmental public body UK Research and Innovation and research initiative Horizon Europe.
Part of this funding will go to the government’s new R&D missions accelerator programme. Some £500m of public funds are intended to leverage a further £1.5bn of private investment in innovation that supports the government’s “missions”.
(One of the five key “missions” announced by the Labour government in its manifesto is to “make Britain a clean-energy superpower”.)
Additionally, R&D funding will include up to £750m for a new supercomputer at Edinburgh University, the largest in the UK. This will be used to support a broad range of fields, including climate and weather predictions and research into fusion power.
In a statement, secretary of state for Scotland Ian Murray welcomed the funding for the supercomputer, adding:
“This will see Scotland playing a leading role in creating breakthroughs that have a global benefit – such as new medicines, health advances and climate change solutions.”
Ahead of the publication of the delayed UK industrial strategy, the spending review lists relevant R&D commitments.
It says over £3bn in R&D and capital funding over the next four years will go to advanced manufacturing across the UK, “anchoring the supply chain of zero emission vehicles, batteries and ultra-low and zero-carbon emissions aircraft[s]”.
Clean-energy industries will also receive “significant additional funding”, it adds.
Flood defences and farming funds
As part of the spending review, the government announced investment in climate adaptation and the natural environment to “increase the UK’s resilience to the effects of climate change and protect the ecosystems that underpin the economy and food security”.
This includes £2.7bn in sustainable farming and nature recovery funding until 2028-29, as well as £4.2bn to build and maintain flood defences from 2026-27 to 2028-29.
According to the spending review, farmers will benefit from £2.3bn through the farming and countryside programme and up to £400m from additional nature schemes
There will be increasing support for “nature-friendly farming” through environmental land management schemes, which will grow from £800m in 2023-24 to £2bn by 2028-29. This will be sustained by “rapidly winding down” other subsidy payments.
The spending review states that this will make a “significant contribution” to the Environment Act targets, including improvements to water and air quality and creating spaces for wildlife to support biodiversity.
Funding for both flood defences and farm schemes follows the government stating that it was facing “significant funding pressures” of almost £600m in 2024-25 in the autumn budget.
Foreign aid and climate finance
The government announced in February that it would further cut aid spending to 0.3% of gross national income (GNI) by 2027 in order to fund higher defence spending.
This came just three months after the UK, alongside other developed countries, had committed to raising at least $300bn a year for climate action in developing countries at the COP29 climate summit.
Developed countries have traditionally used their aid budgets to meet such “climate finance” goals.
But observers have noted that scaling up climate finance to meet this new target will be difficult, as nations cut back their overseas spending and the world faces overlapping humanitarian crises.
When announcing the cut earlier this year, prime minister Keir Starmer said that the UK would retain its focus on “tackling climate change” in its aid spending. The government also acknowledged that the decision to cut aid would require “many hard choices”.
The government has a pledge to spend £11.6bn over five years on climate finance in developing countries, which ends in 2025-26. Beyond that, it is expected to announce a new pledge to feed into the $300bn goal.
The spending review does not provide details of precisely what this goal will be, or whether it will be more ambitious as other aid programmes undergo swingeing cuts.
It states that the funding plan “prioritises UK multilateral investment across issues where the international system needs to deliver at scale and to reform”, including the “climate and nature crisis”.
It also says the three departments that provide nearly all UK climate finance – the Foreign, Commonwealth and Development Office, DESNZ and Defra – will “maintain progress” on the nation’s international climate goals.
However, the amounts of aid channelled via all three of these departments will be lower in the coming years than they are now, according to the government’s figures.
Response to climate-risks report
In a separate document published alongside the spending review, the government also set out its response to the latest “fiscal risks and sustainability” (FRS) report, published by the Office for Budget in September 2024.
Within this, the government reiterates its intention to “accelerate to net-zero”, including via its target for clean power by 2030.
The response adds that, alongside this, the government recognises that it “must also take action to build resilience and ensure the UK is well-prepared for the changing climate”.
It says that FRS identified flooding and extreme heat as areas that need particular attention, before setting out its spending commitments in these areas.
The response also confirms two important dates for UK climate-policy watchers.
First, the response says the government will, in October 2025, publish its “carbon budget delivery plan”. This will set out the plans and policies the government will put in place in order to meet the first six carbon budgets, covering the years out to 2037.
Second, it says that the government will legislate for the seventh UK “carbon budget” by June 2026. This is a legally binding limit on emissions covering five years from 2038 to 2042. The CCC has recommended an 87% reduction below 1990 levels.
The post UK spending review 2025: Key climate and energy announcements appeared first on Carbon Brief.
UK spending review 2025: Key climate and energy announcements
The UK has abandoned projects worth tens of millions of pounds that were meant to help protect Congo rainforests and support local people.
Together, these initiatives would have made up around half of the £200m that the UK pledged to support conservation in the Congo basin – the world’s second-largest rainforest.
When it hosted COP26 in Glasgow, the UK led a new initiative to end forest loss, which included a collective pledge by 12 donors of “at least” $1.5bn (£1.1bn) for Congo rainforest nations by 2025.
Development minister Jenny Chapman revealed last week that, as of 2024, the UK had only provided £39.8m towards this goal.
Alongside the US and much of Europe, the UK has significantly cut its aid budget in recent years, leading to much of its Congo rainforest spending being cancelled or reappraised.
The government says it still plans to “prioritise” rainforest regions, including the Congo basin, but civil society groups and MPs are concerned about the lack of “ring-fenced” forest funding in the UK’s new aid strategy.
COP pledge
At COP26, the UK – led by then prime minister Boris Johnson – launched the “Glasgow leaders’ declaration”, with a goal to “halt and reverse forest loss” by 2030. This was backed by more than 140 nations.
The UK also made various funding pledges, including £200m to protect the Congo basin, £350m for tropical forests in Indonesia and “up to £300m” for the Amazon.
These commitments target the world’s three largest rainforests, all of which face major forest loss due to threats such as agriculture, logging and climate change.
The Congo basin is the planet’s largest forested carbon sink. Yet, its six host nations are among the poorest in the world and face significant funding barriers.
This has global ramifications. An official UK assessment warned that “degradation or collapse” of the Amazon or Congo rainforests “threaten UK national security and prosperity”.
Forest cuts
Following successive aid cuts introduced by both the Conservative and then Labour governments – tracking a global trend – the UK’s Congo funding is under threat.
The Congo basin forest action programme (CBFA) was launched by the UK at COP27. It was explicitly set up to provide “roughly half” of the UK’s £200m Congo pledge.
CBFA set out to “empower central African nations”, such as the Democratic Republic of the Congo (DRC), with support for “community forests” and other measures to curb forest loss.
Now, after reporting delays, the UK has slashed the CBFA as part of the Labour government’s recent aid cuts, intended to free up money for defence spending.
Its original £90m budget has now been reduced to £18.8m. Government data shows that £15m of this has already been spent.
This is not the only Congo project that has been dropped due to this latest round of aid cuts.
The Congo part of the biodiverse landscapes fund – championed by the previous government and worth at least £12.3m – has been closed, just two years into its seven-year schedule.
Government documents reveal more Congo forest funding is at risk as the UK scales back its aid budget, including the UK’s two largest remaining projects in the region.
One initiative, intended to “incubate forest-friendly enterprises” in DRC, faces “reduc[ed] budgets”. Officials working on the other, while more optimistic, reported that the project may be forced to operate in fewer countries as the cuts set in.
Documents also reveal the difficulties that come when operating in the Congo, including “complex political economies” and, in Gabon, a military coup – which “complicated matters”.
‘Breaking promises’
Damian Fleming, a senior director of forests at WWF International tells Carbon Brief:
“Tropical forest countries are making long-term policy and development choices in expectation that international partners will honour their commitments.”
In a series of recent parliamentary responses, Chapman revealed that the UK had only spent £39.8m on Congo forest finance, as of 2024. (She declined to provide any information on the Indonesia and Amazon regional goals.)
Despite being presented as the UK’s “contribution” to the £1.1bn-by-2025 global goal agreed at COP26, the £200m target has a deadline of 2029.
Therefore, while the collective goal has been met, the UK’s contribution so far has been relatively small.
Zac Goldsmith, a former Conservative minister who oversaw the forest targets at COP26, tells Carbon Brief that, in his view, the UK has “discarded” its regional pledges:
“We have gone from being perhaps the leader on protecting nature internationally to breaking promises to countries around the world for whom the environment is an existential issue.”
Future targets
The Labour government says it has met the five-year “climate finance” target of £11.6bn that expires this year.
Ministers also say the government has met “and exceeded” the £3bn and £1.5bn sub-goals for “preserving nature” and forests, respectively, within the £11.6bn. These are the funding streams that include support for the Congo basin and other rainforests.
The UK has funded a variety of projects in line with its forest goals, including mangrove restoration in Indonesia, support for carbon-offsetting projects in Brazil and promoting “forest stewardship” among farmers in Cameroon.
Chapman has stated that the UK will continue to “prioritise” the Congo rainforest, in line with its new plan for aid spending in Africa. The UK even helped to launch a new “call to action” for Congo basin funding at COP30 last year.
The UK government also says it supported the creation of Brazil’s flagship “Tropical Forest Forever Facility” (TFFF). However, so far it has not provided any funding for the facility.
When the government announced a new climate finance pledge for 2026 onwards, it stressed that nature would still be a “focus” and said it would also generate billions in “climate and nature positive investments”. Nevertheless, it dropped the “ring-fenced” amounts for nature and forests that had appeared in its previous pledge.
The UK, alongside other developed countries, has pledged to provide biodiversity finance to developing countries, under the Kunming-Montreal Global Biodiversity Framework (GBF) – a non-binding global pact to halt and reverse nature loss by 2030.
Sarah Champion, chair of the international development committee of MPs, says “sub-pledges” for nature and forests are a “cost-effective and impactful” way to ensure this finance is provided, alongside climate finance. She tells Carbon Brief that she was “concerned” about the move away from this approach:
“When the minister recently appeared before the international development committee, I was concerned to hear her characterise this shift as a ‘gamble’.”
A government spokesperson tells Carbon Brief:
“We remain committed to providing finance for forests, including in the Congo basin, as a core element of our overall climate funding.”
A shorter version of this article was first published in Cropped, Carbon Brief’s fortnightly newsletter that provides a digest of food, land and nature news, on 15 July 2026. Subscribe for free.
The post UK withdraws millions in funding from world’s second-largest rainforest in Congo appeared first on Carbon Brief.
UK withdraws millions in funding from world’s second-largest rainforest in Congo
Climate Change
Cropped 15 July 2026: Uganda starves | Trump opens endangered habitats | UK cuts rainforest aid
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
Global drought and heat
DRY THEN WET: A recent heatwave and months of low rainfall has led to a prolonged drought for Uganda, resulting in at least 16 deaths from hunger and significant crop losses, reported BBC News. Bastille Post Global suggested that “a developing El Niño later this year could bring heavier rainfall to parts of the region, raising the risk of flooding in areas now struggling with drought”.
FUNDING FOOD: The UN Food and Agriculture Organization (FAO) and the World Food Programme (WFP) have appealed for $200m in funding to help African nations deal with the impact of El Niño, stated Deutsche Welle. This would target 22 high-risk countries with measures, including “cash transfers, climate-resilient seeds, livestock protection and flood control.” The Guardian explained how El Niño could still “cause a severe shock to global food prices lasting into 2028”.
FARMING FEARS: Extreme weather has devastated agriculture across the world. India saw its driest June in 12 years, reported BBC News, and France has had a “double-digit production” decline, according to Le Monde. The Financial Times reported that farmers in the UK are mitigating the impacts of extreme heat by eliminating “chemicals and intensive ploughing to improve soil quality so it retains water”.
EURO FIRES: Wildfires have spread across Europe, with Spain reporting at least 12 deaths so far, according to the Guardian, and France experiencing road closures, said Reuters. Wildfire Today reported that the most extreme conditions are “across France, Spain and northern Portugal, the Alpine arc extending into northern Italy, the south of the UK and south-east Ireland”. CNN explained how “the climate crisis is driving hotter, drier weather, which is setting the stage for fiercer fire seasons”.
Endangering species
REDEFINING HARM: The Trump administration “reversed decades of longstanding environmental law protecting endangered species…opening up sensitive habitats…to drilling, mining, farming and real estate development”, reported CNN. According to the story, the change “redefines what constitutes ‘harm’” to endangered species, which historically prohibited habitat modification or degradation. Agence France-Presse reported that US environmental groups sued the Trump government over the move, arguing that it had violated “common sense, biological science and federal law”.
OPEN SEASON: Reuters reported that the change “limits the reach of the 50-year-old Endangered Species Act” (ESA), which is a “key regulatory consideration” when granting permits for “oil and gas, mining, electric transmission and other operations on federal lands and water”. Legal scholars told the New York Times the US government “was acting without conducting scientific research into the impact” of the change, while the National Mining Association “applauded the announcement”.
News and views
- INTERNATIONAL WATERS: After a significant delay, the UK ratified the Biodiversity Beyond National Jurisdiction Agreement (BBNJ), also known as the High Seas Treaty. Oceanographic detailed how this will allow for “marine protected areas across international waters for the first time”, but also stressed that the “hard part” starts now.
- SCOPE-FREE: The world’s largest meat supplier JBS “scrapped a key climate goal” in its net-zero plan that accounts for its suppliers’ emissions, “which make up the vast bulk of the company’s environmental footprint”, reported the Financial Times. The company told the paper it was difficult to control these “indirect” emissions.
- DEEP TROUBLE: Pacific gray whales are facing a “catastrophic die-off” as sea-ice loss threatens their food sources, said the Guardian. Separately, conservationists warned that more than half of all molluscs that “cluster around underwater vents” could face extinction from deep-sea mining, reported Reuters.
- ETHANOL PUSHBACK: India’s new rules to promote 100% ethanol fuel and make ethanol-blended fuel mandatory at pumps “triggered a political row”, reported the Times of India. While the Indian government defended the push to automobile owners, a Hindu editorial and an Indian Express comment warned against incentivising fuels made from “water-intensive” sugarcane and rice.
- AMAZON ACTION: Deforestation in the Brazilian Amazon fell to its lowest level in a decade, but president Lula’s plans to “end illegal deforestation by 2030” could be hampered if he is not re-elected, reported Al Jazeera. Meanwhile, Colombia’s outgoing environment minister warned of greater environmental and climate risk under the incoming government, said the Associated Press.
- WAR WORRIES: The International Energy Agency (IEA) warned of the impact of the Iran war on Africa’s clean cooking efforts as disruption in the strait of Hormuz has stunted supplies and increased prices of liquefied petroleum gas (LPG), explained Climate Home News.
Spotlight
UK ‘discards’ Congo rainforest funding
Amid worldwide cuts to aid spending, Carbon Brief explores how the UK is backtracking on funding for the Congo basin – the world’s second-largest rainforest.
The UK has abandoned projects worth tens of millions of pounds that were meant to help protect Congo rainforests and support local people.
Together, these initiatives would have made up half of the £200m that the UK pledged to support forest conservation in the Congo basin.
When it hosted COP26 in Glasgow, the UK led a new initiative to end forest loss, which included a collective pledge of “at least” $1.5bn (£1.1bn) for Congo rainforest nations by 2025.
Development minister Jenny Chapman revealed last week that, as of 2024, the UK had only provided £39.8m towards this goal.
COP pledge
At COP26, the UK – led by then prime minister Boris Johnson – launched the “Glasgow leaders’ declaration”, with a goal to “halt and reverse forest loss” by 2030.
The UK also made various regional funding pledges, including £200m for the Congo basin, £350m for tropical forests in Indonesia and “up to £300m” for the Amazon.
All of these rainforests face major forest loss. The Congo basin is the planet’s largest forested carbon sink, but its six host nations are among the poorest in the world and face significant funding barriers.
This has global ramifications. An official UK assessment warned that “degradation or collapse” of the Amazon or Congo rainforests “threaten UK national security and prosperity”.
Forest cuts
Following successive aid cuts introduced by both Conservative and Labour governments – tracking a global trend – the UK’s Congo funding is under threat.
The Congo basin forest action programme (CBFA) was explicitly set up to provide “roughly half” of the UK’s £200m Congo pledge.
Now, after reporting delays, the UK has slashed the CBFA as part of the Labour government’s aid cuts. Its £90m budget has been “quietly reduced by 79% to £18.8m”, according to the Times.
This is not the only Congo project that has been dropped due to aid cuts. The Congo part of the biodiverse landscapes fund – worth at least £12.3m – has closed five years early.
Official documents reveal more Congo forest funding is at risk, including the UK’s two largest remaining projects in the region. One initiative, intended to “incubate forest-friendly enterprises” in DRC, faces “reduc[ed] budgets”.
Documents also show the difficulties operating in the Congo, including “complex political economies” and, in Gabon, a military coup – which “complicated matters”.
‘Breaking promises’
Damian Fleming, a senior forests director at WWF International told Carbon Brief:
“Tropical forest countries are making long-term policy and development choices in expectation that international partners will honour their commitments.”
In a parliamentary response, Chapman said that the UK had spent £39.8m towards its £200m Congo target, as of 2024.
Despite being described as the UK’s contribution to the £1.1bn-by-2025 global goal agreed at COP26, the £200m target has a deadline of 2029. Therefore, while the collective goal has been met, the UK’s contribution was relatively small.
Zac Goldsmith, a former Conservative minister who oversaw the forest targets at COP26, told Carbon Brief that, in his view, the UK has “discarded” its regional pledges:
“We have gone from being perhaps the leader on protecting nature internationally to breaking promises to countries around the world.”
The Labour government says it has met its overarching “climate finance” goals and still intends to “prioritise” the Congo rainforest.
However, civil society groups and MPs are concerned about the lack of “ring-fenced” forest funding in the UK’s new aid strategy.
Watch, read, listen
TOXIC TROUBLES: DeSmog unpacked a new report that said Northern Ireland is being turned into a “toxic” pig and poultry farming “sacrifice zone” to satiate the UK’s meat appetite.
NEED TO NOAA: Laid-off scientists from the US’s National Oceanic and Atmospheric Administration (NOAA) launched Climate.Us – an independent, public-backed version of the climate information website shut down by Trump last year.
DRY FRUIT: A Dialogue Earth long read looked at how climate change is impacting apricot harvests in the “stark, high-altitude desert” region of Ladakh, India.
READING ALOUD: A London Review of Books podcast discussed Robin Wall Kimmerer’s influential book “Braiding Sweetgrass”, weighing its compelling themes and where it veers into “scientific overreach”.
New science
- Climate change could cause Indigenous peoples in the Amazon to lose 28-34% of their plant species and 18-23% of their associated services | Nature
- Biodiversity in forests can act as a “buffer” against compound extreme weather events | Nature Communications
- Zero-deforestation commitments in Indonesia’s palm oil sector have had “no additional impacts” on reducing forest loss | Proceedings of the National Academy of Sciences
In the diary
- 7-15 July: High-level political forum on sustainable development | New York City
- 13-31 July: Meeting of the International Seabed Authority assembly and council | Kingston, Jamaica
- 16 July: International Energy Agency critical minerals outlook 2026, online
- 27 July-1 August: Scientific and technical subsidiary body meeting of the UN Convention on Biological Diversity | Nairobi, Kenya
This edition of Cropped was written by Jess Milligan, Josh Gabbatiss and Aruna Chandrasekhar. Cropped is edited by Dr Giuliana Viglione. This edition was edited by Daisy Dunne. Please send tips and feedback to cropped@carbonbrief.org.
The post Cropped 15 July 2026: Uganda starves | Trump opens endangered habitats | UK cuts rainforest aid appeared first on Carbon Brief.
Cropped 15 July 2026: Uganda starves | Trump opens endangered habitats | UK cuts rainforest aid
Climate Change
Campaigners oppose Dangote’s planned Kenya refinery over climate and ecological risks
Climate and environment campaigners have urged the Kenyan government to halt plans for a proposed 700,000-barrel-per-day oil refinery backed by Africa’s richest man, Aliko Dangote, warning the project threatens one of East Africa’s most ecologically sensitive coastlines.
The refinery, which is planned to be situated in Lamu County on Kenya’s northern coast, will be East Africa’s largest refining project and is expected to take up to three years to build. Once finished, it would supply refined petroleum products to Kenya, Uganda, Tanzania and Rwanda, among others, helping to reduce the region’s dependence on imported fuels.
Campaigners are questioning the viability of such a large refinery at a time when renewable energy and electric transportation are expanding rapidly.
Mohamed Adow, director of a Kenya-based climate and energy think-tank Power Shift Africa, said the decision to give Dangote the green light for the refinery is “an extraordinary act of environmental recklessness and economic short-sightedness”, arguing it would tie Kenya to “yesterday’s energy system” just as global demand for petroleum products faces increasing uncertainty.
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Campaigners argue the refinery risks coming online just as transport – the largest market for petrol and diesel – is beginning to electrify across the continent.
Kenya launched a National Electric Mobility Policy earlier this year to speed up the uptake of electric vehicles (EVs) and reduce the country’s roughly $5 billion annual fuel import bill. Ethiopia has already banned imports of non-electric vehicles and now has more than 100,000 EVs on its roads, while Rwanda is expanding its electric mobility programme with plans to convert its fleet of around 100,000 motorcycles to electric.
Adow said the project risks billions of dollars in investment in infrastructure that could become obsolete as the world moves away from oil.
“Building a refinery today assumes decades of robust demand for fuels that much of the world is actively trying to phase out,” he said in a statement.
Ecological concerns
Lamu – the proposed site for the project – is home to the UNESCO World Heritage-listed Lamu Old Town and an archipelago containing extensive mangrove forests, coral reefs and seagrass beds that support fisheries, tourism and coastal livelihoods.
Locating the refinery in Lamu would “place one of Africa’s largest fossil fuel developments in one of the continent’s most ecologically sensitive and culturally significant coastal regions,” Power Shift Africa said.
Major emitting countries knew of climate risks decades earlier than claimed
Sherelee Odayar, oil and gas campaigner at Greenpeace Africa, warned that a refinery of this scale could increase the risk of habitat destruction, marine pollution, oil spills and air pollution in one of East Africa’s most fragile coastal ecosystems.
She said the risks stem not only from the refinery itself – including storage tanks, pipelines and fuel handling facilities – but also from the large volumes of crude oil that would need to be shipped into Lamu and refined products exported by sea. Increased tanker traffic and fuel transfers, she said, would raise the likelihood of accidents in ecologically sensitive coastal waters.
Odayar added that Lamu’s low-lying, flood-prone coastline could compound those risks by damaging infrastructure and carrying contaminants from storage facilities into nearby fishing grounds and marine ecosystems.
“Lamu’s mangroves, coral reefs and seagrass beds are not expendable; they support fisheries, livelihoods and coastal protection,” Odayar added.
She said Kenyan authorities should suspend any approvals until an independent environmental and social impact assessment is completed, with genuine public participation and transparent scrutiny of the long-term economic, health and ecological risks.
“Any review must assess cumulative impacts on Lamu’s mangroves, coral reefs, seagrass beds and fishing livelihoods, alongside the wider economic risk of locking Kenya into costly fossil fuel infrastructure as the global energy transition accelerates”.
Dangote Group declined to answer questions from Climate Home News when contacted by phone.
Technological change threaten project’s future
The Kenya refinery would replicate Dangote’s 650,000-barrel-per-day refinery in Lagos, currently Africa’s largest, which has plans to more than double capacity to 1.4 million barrels per day by 2028.
Adow of Power Shift Africa said projects like this represent “a breathtaking failure to recognise where the global economy is heading”, pointing out that the East African refinery risks arriving when Africa is experiencing an unprecedented clean energy boom.
Referencing Africa’s solar boom, global electric vehicles uptake and the International Energy Agency’s projection that global oil demand is set to enter a decline later this decade, the think-tank founder said African governments risk anchoring the continent’s future to an industry facing mounting economic uncertainty.
Loss and damage fund delays first project approvals as needs dwarf resources
The organisation said the project faces a bigger threat aside from environmental opposition and that is technological change. “The danger is not simply that the refinery will pollute, it is that it will become obsolete long before it has paid for itself,” he added.
Kenyan President William Ruto said the project will create about 60,000 jobs for Kenyans and supply refined fuel to eight East and Central African countries.
GreenPeace Africa’s Odayar said the promise of ‘thousands of jobs’ cannot be used to hide the true cost of the investment which is that large fossil fuel projects often create temporary jobs while undermining existing livelihoods in fishing, tourism and small-scale local economies.
“The enormous capital required for a project of this scale could instead help accelerate Kenya’s renewable energy future through solar, wind, geothermal, storage and better energy access,” she added.
The post Campaigners oppose Dangote’s planned Kenya refinery over climate and ecological risks appeared first on Climate Home News.
Campaigners oppose Dangote’s planned Kenya refinery over climate and ecological risks
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