The United States is set to invest public money in the expansion of oil and gas production in Bahrain despite the Biden administration’s pledges to end support for fossil fuel projects overseas.
The US Export-Import Bank (Ex-Im) – a federal export credit agency – is pushing ahead with plans to back the drilling of more than 450 new oil and gas wells in one of the oldest extraction fields across the Middle East.
Ex-Im’s board voted on Thursday to notify US Congress about the potential investment, a required step for projects over $100 million. Observers told Climate Home the Bahrain financing is nearly certain to be secured as early as next month.
At Cop26, the US joined 33 other countries in pledging to end direct public finance for overseas fossil fuel projects by the end of 2022. While most other signatories respected the commitment, the US approved over $2 billion in international fossil-fuel finance last year, according to an analysis by Oil Change International. Exim has been responsible for just under half of it.
“The United States is stalling momentum to end international public finance for fossil fuels globally”, said Nina Pušić, export finance climate strategist at Oil Change International. While the country can help “lead a shift of billions of dollars” from fossil fuels to renewables, approvals like this one “are a huge step backward”, she added.
Oil and gas expansion
Ex-Im’s financing in Bahrain would go towards a $4.2 billion programme to boost production in a nine-decades-old field where new reserves were discovered in 2018.
State-owned company Tatweep Petroleum plans to drill up to 34 new gas wells and more than 420 new oil wells, in addition to the construction of processing facilities and transport networks.
The programme is expected to free up reserves containing 5.2 trillion cubic feet of gas – nearly six times the amount of gas the Kingdom currently produces every year, according to company filings. Oil production should see a more modest uplift.
No new oil and gas extraction project should go ahead if the world wants to keep global warming below 1.5C, according to the International Energy Agency (IEA).
Pumping oil and gas from the expanded Bahraini field is expected to spew over 1.4 million tonnes of CO2 a year in the atmosphere by 2026 – nearly double the emissions recorded there in 2022, according to an environmental assessment submitted by Tatweep.
That does not include emissions generated from end consumers burning the fuels (known as Scope 3), which generally account for up to 90% of the carbon footprint of fossil fuel companies.
Running tensions
Ex-Im’s continued support for fossil fuels overseas has been a source of ongoing tensions.
Two members of an advisory group set up by the Biden administration to bolster Ex-Im climate considerations resigned last week following discussions over the Bahrain project.
Last year former special envoy John Kerry reportedly phoned Ex-Im’s chair Reta Jo-Lewis urging her to delay a decision to fund a nearly $100 million oil refinery expansion in Indonesia, according to Politico. But the agency went ahead with the vote and greenlit the project.
As the US official export credit agency, Ex-Im is influential in directing investment towards specific sectors by offering exporters government-backed loans, guarantees or insurance. The agency acts independently, but its board members are appointed by the US president and confirmed by the Senate. Joe Biden picked the sitting chair Jo-Lewis.
No clear guidelines
When president Biden took office in January 2021, he issued an executive order calling on federal agencies, including Ex-Im, “to identify steps through which the United States can promote ending international financing of carbon-intensive fossil fuel-based energy”. Months later, the US government signed up for the UN pact in Glasgow.
However, the Biden administration stopped short of directly forcing Ex-Im to adopt a fossil fuel exclusion policy.
“A key issue is the lack of clear guidelines from the US government to Ex-Im and other US agencies to explicitly prohibit new public fossil fuel support”, said Sherri Ombuya, a researcher at Perspectives who wrote a report about Ex-Im policies.
In 2023, Ex-Im approved just under $1 billion worth of funding for projects including an oil refinery in Indonesia and a credit facility to help commodity trader Trafigura sell more US liquefied natural gas (LNG). Oil and gas investments account for nearly a quarter of the agency’s portfolio.
Ex-Im’s arguments
Ex-Im has repeatedly justified its fossil fuel financing by pointing to a “non-discrimination” clause in its charter. The provision prevents the agency from rejecting funding applications just because they concern specific industries, such as oil and gas.
But Ombuya said that “is not a fully valid argument”. She added that Ex-Im’s board could turn down applications “if they don’t align with the US climate commitments which would effectively lead to the rejection of oil and gas projects”.
Ecuador’s new president tries to wriggle out of oil drilling referendum
Campaigners also argue that the agency could expand the use of existing tools to screen projects against certain thresholds of greenhouse gas emissions without singling out specific sectors. Ex-Im already applies criteria to projects with “high carbon intensity”, effectively ruling out any funding for coal power plants.
Friends of the Earth filed last December a legal complaint against Ex-Im at the Organisation for Economic Co-operation and Development (OECD) arguing that the agency is breaching a requirement to draw up emission reduction plans and avoid causing environmental damage.
Win for American fossil fuel firms
Ex-Im says its mission is to support American jobs. It does so by helping US companies secure lucrative foreign contracts with its backing.
Last year Jo-Lewis met government officials and corporate executives in Bahrain to “expand ExIm’s footprint in the region and facilitate new opportunities for U.S. exporters in Bahrain.”
The Bahrain project will see the involvement of SLB (formerly known as Schlumberger), the world’s largest oilfield services provider.
The Houston-based company specializes in finding oil and gas deposits, drilling wells, and managing reservoirs to boost production. SLB was involved in the discovery of the new oil and gas reserves in central Bahrain and in March 2021 it won a $225 million contract for their development.
Ex-Im has been approached for comment.
The post US trade agency backs oil and gas drilling in Bahrain despite Biden pledge appeared first on Climate Home News.
US trade agency backs oil and gas drilling in Bahrain despite Biden pledge
Climate Change
A New Tool Could Help Track Deep-Sea Mining Activity
Countries are still debating whether to mine the seafloor for minerals, but exploratory efforts have already begun.
As demand for critical minerals surges around the world, countries are debating whether to mine the untapped deep-sea reserves of cobalt, copper and manganese, miles below the surface. But a growing body of research shows that these activities could have profound consequences for ocean ecosystems, and the industries and communities that rely on them.
Climate Change
IEA: Slow transition away from fossil fuels would cost over a million energy sector jobs
A slower shift to clean energy could leave the world with 1.3 million fewer energy sector jobs by 2035 compared with a scenario in which governments fully implement their green policies, the International Energy Agency (IEA) has found.
In its annual World Energy Employment report, the Paris-based watchdog said on Friday that the Current Policies Scenario (CPS), which it reintroduced under pressure from the Trump administration, has “more muted” employment growth than the Stated Policies Scenario.
The CPS sees oil and gas demand continuing to rise until at least 2050 – a scenario that the IEA described as “cautious” and “anchored in enacted laws and measures” and was widely criticised by clean energy experts.
A fast energy transition would spur investment in construction, creating more jobs across the sector. New roles for electricians, building insulators, solar panel and energy-efficient lightbulb installers, and transition mineral miners would more than offset job losses in coal mines, power plants and oil and gas fields, the report found.
Anabella Rosemberg, Just Transition lead at Climate Action Network International, lamented that the clean energy sector is “being undermined at a time when employment creation is of utmost priority”.
“Climate ambition and decent job creation must go hand in hand – but as the recent conversations at COP30 showed, there is a need for both the right targets and just transition strategies to make it happen,” she added.
A more ambitious Net Zero Emissions scenario, aligned with the Paris Agreement goal of limiting global warming to 1.5C, would see roughly ten million more energy jobs created than under the CPS, report author Daniel Wetzel told Climate Home News at a press conference.
Bottleneck warnings
The IEA warned that governments must act to train workers for these roles or risk facing shortages of electricians, welders, and grid specialists – a gap that could slow the energy transition and drive up wages and energy costs.
IEA head Fatih Birol highlighted a particular shortage of qualified workers in the nuclear industry, warning that the problem could worsen as the sector’s workforce continues to age. “I hear nuclear is making a comeback, but the interest in the nuclear sector for the jobs is rather weak,” he said.
Laura Cozzi, IEA’s Director of Sustainability, Technology and Outlooks, warned of a shortage of skilled workers in electricity grids. “That is one of the key ingredients why we are not seeing grids ramp up as [they] should,” she said. Over 60 governments pledged at COP29 to improve and expand their grids to enable clean electricity to flow to where it is needed.
Bert De Wel, Global Coordinator for Climate Policy at the International Trade Union Confederation, celebrated that the energy transition is creating jobs but added that they should be good jobs with decent pay, conditions and union rights. Decent work would attract skilled workers, he added.
The report found that wages in the oil and gas industry have generally risen faster over the past year than in the solar – and especially the wind – sectors. It noted that the oil and gas industry has a “historical tendency to offer highly competitive wages to attract and retain top talent”.
At the COP30 climate summit, governments agreed to set up the Belém Action Mechanism to try and make the energy transition fairer to groups such as workers in the energy industry. It will give trade unions a formal role in shaping just transition policies, for what the ITUC says is the first time.
ITUC General Secretary Luc Triangle called it a “decisive win for the union movement and working people across the world, in all sectors but especially those in transition industries.”
The post IEA: Slow transition away from fossil fuels would cost over a million energy sector jobs appeared first on Climate Home News.
IEA: Slow transition away from fossil fuels would cost over a million energy sector jobs
Climate Change
DeBriefed 5 December: Deadly Asia floods; Adaptation finance target examined; Global south IPCC scientists speak out
Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.
This week
Deadly floods in Asia
MOUNTING DEVASTATION: The Associated Press reported that the death toll from catastrophic floods in south-east Asia had reached 1,500, with Indonesia, Sri Lanka and Thailand most affected and hundreds still missing. The newswire said “thousands” more face “severe” food and clean-water shortages. Heavy rains and thunderstorms are expected this weekend, it added, with “saturated soil and swollen rivers leaving communities on edge”. Earlier in the week, Bloomberg said the floods had caused “at least $20bn in losses”.
CLIMATE CHANGE LINKS: A number of outlets have investigated the links between the floods and human-caused climate change. Agence France-Presse explained that climate change was “producing more intense rain events because a warmer atmosphere holds more moisture and warmer oceans can turbocharge storms”. Meanwhile, environmental groups told the Associated Press the situation had been exacerbated by “decades of deforestation”, which had “stripped away natural defenses that once absorbed rainfall and stabilised soil”.
‘NEW NORMAL’: The Associated Press quoted Malaysian researcher Dr Jemilah Mahmood saying: “South-east Asia should brace for a likely continuation and potential worsening of extreme weather in 2026 and for many years.” Al Jazeera reported that the International Federation of Red Cross and Red Crescent Societies had called for “stronger legal and policy frameworks to protect people in disasters”. The organisation’s Asia-Pacific director said the floods were a “stark reminder that climate-driven disasters are becoming the new normal”, the outlet said.
Around the world
- REVOKED: The UK and Netherlands withdrew $2.2bn of financial backing from a controversial liquified natural gas (LNG) project in Mozambique, Reuters reported. The Guardian noted that TotalEnergies’ “giant” project stood accused of “fuelling the climate crisis and deadly terror attacks”.
- REVERSED: US president Donald Trump announced plans to “significantly weaken” Biden-era fuel efficiency requirements for cars, the New York Times said.
- RESTRICTED: EU leaders agreed to ban the import of Russian gas from autumn 2027, the Financial Times reported. Meanwhile, Reuters said it is “likely” the European Commission will delay announcing a plan on auto sector climate targets next week, following pressure to “weaken” a 2035 cut-off for combustion engines.
- RETRACTED: An influential Nature study that looked at the economic consequences of climate change has been withdrawn after “criticism from peers”, according to Bloomberg. [The research came second in Carbon Brief’s ranking of the climate papers most covered by the media in 2024.]
- REBUKED: The federal government of Canada faced a backlash over an oil pipeline deal struck last week with the province of Alberta. CBC News noted that First Nations chiefs voted “unanimously” to demand the withdrawal of the deal and Canada’s National Observer quoted author Naomi Klein as saying that the prime minister was “completely trashing Canada’s climate commitments”.
- RESCHEDULED: The Indonesian government has cancelled plans to close a coal plant seven years early, Bloomberg reported. Meanwhile, Bloomberg separately reported that India is mulling an “unprecedented increase” in coal-power capacity that could see plants built “until at least 2047”.
$518 billion a year
The projected coastal flood damages for the Asia-Pacific region by 2100 if current policies continue, according to a Scientific Reports study covered this week by Carbon Brief.
Latest climate research
- More than 100 “climate-sensitive rivers” worldwide are experiencing “large and severe changes in streamflow volume and timing” | Environmental Research Letters
- Africa’s forests have switched from a carbon sink into a source | Scientific Reports
- Increasing urbanisation can “substantially intensify warming”, contributing up to 0.44C of additional temperature rise per year through 2060 | Communications Earth & Environment
(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 new target for developed nations to triple adaptation finance by 2035, agreed at the COP30 climate summit, would not cover more than a third of developing countries’ estimated needs, Carbon Brief analysis showed. The chart above compares a straight line to meeting the adaptation finance target (blue), alongside an estimate of countries’ adaptation needs (grey), which was calculated using figures from the latest UN Environmental Programme adaptation gap report, based on countries’ UN climate plans (called “nationally determined contributions” or NDCs) and national adaptation plans (NAPs).
Spotlight
Inclusivity at the IPCC
This week, Carbon Brief speaks to an IPCC lead author researching ways to improve the experience of global south scientists taking part in producing the UN climate body’s assessments.
Hundreds of climate scientists from around the world met in Paris this week to start work on the Intergovernmental Panel on Climate Change’s (IPCC’s) newest set of climate reports.
The IPCC is the UN body responsible for producing the world’s most authoritative climate science reports. Hundreds of scientists from across the globe contribute to each “assessment cycle”, which sees researchers aim to condense all published climate science over several years into three “working group” reports.
The reports inform the decisions of governments – including at UN climate talks – as well as the public understanding of climate change.
The experts gathering in Paris are the most diverse group ever convened by the IPCC.
Earlier this year, Carbon Brief analysis found that – for the first time in an IPCC cycle – citizens of the global south make up 50% of authors of the three working group reports. The IPCC has celebrated this milestone, with IPCC chair Prof Jim Skea touting the seventh assessment report’s (AR7’s) “increased diversity” in August.
But some IPCC scientists have cautioned that the growing involvement of global south scientists does not translate into an inclusive process.
“What happens behind closed doors in these meeting rooms doesn’t necessarily mirror what the diversity numbers say,” Dr Shobha Maharaj, a Trinidadian climate scientist who is a coordinating lead author for working group two (WG2) of AR7, told Carbon Brief.
Global south perspective
Motivated by conversations with colleagues and her own “uncomfortable” experience working on the small-islands chapter of the sixth assessment cycle (AR6) WG2 report, Maharaj – an adjunct professor at the University of Fiji – reached out to dozens of fellow contributors to understand their experience.
The exercise, she said, revealed a “dominance of thinking and opinions from global north scientists, whereas the global south scientists – the scientists who were people of colour – were generally suppressed”.
The perspectives of scientists who took part in the survey and future recommendations for the IPCC are set out in a peer-reviewed essay – co-authored by 20 researchers – slated for publication in the journal PLOS Climate. (Maharaj also presented the findings to the IPCC in September.)
The draft version of the essay notes that global south scientists working on WG2 in AR6 said they confronted a number of diversity, equity and inclusion (DEI) issues, including “skewed” author selection, “unequal” power dynamics and a “lack of respect and trust”. The researchers also pointed to logistical constraints faced by global south authors, such as visa issues and limited access to journals.
The anonymous quotations from more than 30 scientists included in the essay, Maharaj said, are “clear data points” that she believes can advance a discussion about how to make academia more inclusive.
“The literature is full of the problems that people of colour or global south authors have in academia, but what you don’t find very often is quotations – especially from climate scientists,” she said. “We tend to be quite a conservative bunch.”
Road to ‘improvement’
Among the recommendations set out in the essay are for DEI training, the appointment of a “diversity and inclusion ombudsman” and for updated codes of conduct.
Marharaj said that these “tactical measures” need to occur alongside “transformative approaches” that help “address value systems, dismantle power structures [and] change the rules of participation”.
With drafting of the AR7 reports now underway, Maharaj said she is “hopeful” the new cycle can be an improvement on the last, pointing to a number of “welcome” steps from the IPCC.
This includes holding the first-ever expert meeting on DEI this autumn, new mechanisms where authors can flag concerns and the recruitment of a “science and capacity officer” to support WG2 authors.
The hope, Maharaj explained, is to enhance – not undermine – climate science.
“The idea here was to move forward and to improve the IPCC, rather than attack it,” she said. “Because we all love the science – and we really value what the IPCC brings to the world.”
Watch, read, listen
BROKEN PROMISES: Climate Home News spoke to communities in Nigeria let down by the government’s failure to clean up oil spills by foreign companies.
‘WHEN A ROAD GOES WRONG’: Inside Climate News looked at how a new road from Brazil’s western Amazon to Peru has become a “conduit for rampant deforestation and illegal gold mining”.
SHADOWY COURTS: In the Guardian, George Monbiot lamented the rise of investor-state dispute settlements, which he described as “undemocratic offshore tribunals” that are already having a “chilling effect” on countries’ climate ambitions.
Coming up
- 1-12 December: UN Environment Assembly 7, Nairobi, Kenya
- 7 December: Hong Kong legislative elections
- 11 December: Falkland Islands legislative assembly elections
Pick of the jobs
- Greenpeace International, engagement manager – climate and energy | Salary: Unknown. Location: Various
- The Energy, newsletter editor | Salary: Unknown. Location: Australia (remote)
- University of Groningen, PhD position in motivating people to contribute to societal transitions | Salary: €3,059-€3,881 per month. Location: Groningen, the Netherlands
DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.
This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.
The post DeBriefed 5 December: Deadly Asia floods; Adaptation finance target examined; Global south IPCC scientists speak out appeared first on Carbon Brief.
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