Paola Yanguas Parra, Eduardo Posada Perlaza and Megan Darby work with the International Institute for Sustainable Development (IISD) energy team.
At COP 29 climate negotiations in Baku, Azerbaijan, the top priority is to land a new climate finance package. The summit will be closely followed by a fresh round of national climate plans, setting emissions reduction targets to 2035. Together, these need to deliver on last year’s historic agreement to transition away from fossil fuels.
While climate finance talks are fraught, progressive governments don’t need to wait for consensus to set an example of what good transition finance looks like.
Colombia’s environment minister, Susana Muhamed, has arrived in Baku with a pitch that stands out. She is seeking $10 billion from international partners towards a $40 billion climate investment plan.
This plan is geared to not just scale up clean energy, but to diversify the economy away from fossil fuel production. It targets renewables, yes – but also sustainable agriculture, nature restoration and ecotourism, to create a greener and more inclusive economy.
For the world to meet the Paris Agreement goal of holding global warming to 1.5°C, this kind of economic diversification is essential.
Push-back against bold vision
Gustavo Petro was elected president of Colombia in 2022, promising to halt fossil fuel expansion and reduce economic dependence on coal, oil and gas. It has not been easy.
While environmental and human rights groups celebrated this vision, it met push-back from industry and some national think-tanks. Worse, credit rating downgrades for sovereign bonds are making it harder to finance the transition to alternatives.
But his administration has not lost sight of the urgency of climate action. Ironically, Petro cancelled plans to attend COP29 to oversee relief from a weather emergency at home – floods affecting 25,000 families.
Colombia’s change of course on fossil fuels is pragmatic, as much as it is ambitious. Coal, oil and gas extraction has traditionally played a major role in Colombia’s economy. In the last 10 years, fossil fuels accounted for around half the country’s exports, two thirds of final energy consumption and 3-6% of GDP.
Colombia adds nature to the mix with its $40-billion energy transition plan
However, as the world moves toward cheap, clean renewable power, global demand for all fossil fuels is set to peak by 2030. Beyond that, producers will compete for shares of a shrinking market.
Colombia faces particularly high transition risk, and is already seeing demand for its coal decline with an accompanying decline in production capacity, despite high international coal prices.
Moreover, its oil and gas reserves are being depleted, and new discoveries, even if fully exploited, would not reverse the trend. Remaining offshore gas reserves are uneconomical to exploit under most price scenarios.
These trends show that Colombia can no longer depend on the fossil fuel industry as a locomotive of economic growth.
Reforming fossil fuel subsidies
The answer is to transition away from fossil fuels, redirecting investment into sustainable growth sectors. Colombia has untapped potential in renewable energy, bioeconomy, and tourism, among many other sectors identified in its Just Transition roadmap .
Attention is also needed to the workers and communities most affected by the decline in fossil fuel extraction. They will require access to retraining, jobs and social security. Colombia has taken steps in this direction, signing a pledge for green jobs and just transition with the International Labour Organization in 2019, and launching pilot projects in the coal mining region of Cesar.
Critics accuse the Petro administration of scaring off investors and weakening Colombia’s economy with its stance on phasing out fossil fuels. They point to Colombia’s credit rating, which has gradually deteriorated in recent years.
In fact, that trend started before Petro took office, when the country lost its decade-old BBB-rating in 2020. Since the COVID-19 pandemic, Colombia has faced sluggish growth rates, high inflation, and a rising fiscal deficit, all of which have contributed to the credit rating downgrades.
COP29 Bulletin Day 6: Climate march tamed and gender talks gridlocked
One drag on the government budget is fossil fuel subsidies. These spiked in 2022 to $8 billion, or 2.5% of GDP, as soaring international oil prices diverged from fixed motor fuel prices. While there is progress in the gradual reduction of gasoline subsidies, further subsidy cuts have been met with resistance. For instance, in August 2024 the Petro government attempted to substantially decrease the subsidies but scaled back its plans for diesel after truckers went on strike.
These challenges underscore the importance of a comprehensive strategy for fossil fuel subsidy reform. Some 33% of Colombia’s population lives below the poverty line and any changes to subsidies need to address impacts on their livelihoods and purchasing power.
Test case for transition finance
Colombia’s $40 billion climate investment plan is a test case for transition finance. The Petro administration has a bold vision for a post-fossil fuel economy. And while a diversified economy is ultimately more stable and prosperous, it takes time to establish new sectors.
This is where the call for international support comes in. Colombia needs grants and concessional loans, technical assistance and access to clean technology to make its vision a reality. Targeted public finance can leverage private investment and revitalize the economy, under Petro’s administration and beyond.
COP29 must deliver on the world’s energy transition promises
There were hopes that the recent UN biodiversity talks in Cali, Colombia, would produce a new plan for nature financing. However, countries could not agree on the finance mechanism, further raising the stakes for climate finance talks at COP29.
It is in the interests of the international community that a Global South fossil fuel producer succeeds in forging a greener path. The expected US withdrawal from the Paris Agreement only makes it more important for other powers to renew their commitment to advancing climate action. Rewarding Colombia’s leadership with international support can increase the chances of success and inspire others to follow.
The post Why the international community should back Colombia’s post-fossil fuel plan appeared first on Climate Home News.
Why the international community should back Colombia’s post-fossil fuel plan
Climate Change
“Sink or swim”: WA Gov hugely underestimating decline in regional gas demand while sleeping on green exports, new report finds
PERTH, Tuesday 13 October 2026 — A new report from Greenpeace Australia Pacific and Springmount Advisory reveals green commodity exports are an untapped economic opportunity for Western Australia in a declining Asian gas market, while offering a genuine solution for decarbonising Asia.
From Gas to Green: Building Western Australia’s Future State is a comprehensive analysis of the declining gas market in Asia, and the untapped economic opportunity for WA to become a global leader in green commodity exports while driving the regional shift away from fossil fuels.
The report offers key recommendations for the WA Government to support regional decarbonisation through an orderly phase out of gas exports in favour of green iron and other green exports. It comes as global climate leaders from across business, politics and advocacy prepare to meet for the Global Citizen Now: Perth event focused on decarbonising WA.
Key findings:
- Gas demand is falling across WA’s core markets in Asia: Gas demand fell in 2025 and is projected to continue to decline, driven by a combination of global geopolitical factors and domestic concerns.
- Policy shifts in key markets since the war on Iran now prioritise renewables and nuclear over gas: Japan, South Korea and China have legislated energy plans that prioritise renewables and nuclear over gas.
- New WA gas would arrive in a saturated, uncertain Asian market filled with cheaper gas: The US is now the world’s largest liquefied gas producer and plans to double its capacity as it also targets Asian markets.
- Green commodities offer a real solution to sustain WA’s economy: WA can lead Australia’s green commodity exports, which by 2060 could be worth almost a trillion dollars.
- Exporting more WA gas is likely to delay or impede Asia decarbonisation: Despite claims by the gas industry, there is no evidence that WA gas is displacing coal in Asia, and in fact diverts resources from genuine decarbonisation options.
Geoff Bice, WA Campaign Lead at Greenpeace Australia Pacific said: “As our export partners in Asia shift away from expensive and polluting gas, the WA Government has a golden opportunity to pivot our economy to green exports, like green iron, which is the most effective way to help our region to decarbonise.
“The writing is on the wall: gas is in decline, renewables are our future. In this context, it makes zero sense for the government to encourage high risk projects like Woodside’s reckless Browse gas proposal at Scott Reef.
“This report clearly shows that the WA Government faces a choice: sink or swim. They can either allow the gas industry to keep ripping off West Australians and continue propping up its decline, or choose the path that will deliver enormous benefits to the state and the world by becoming a leader in the rapidly expanding green economy.”
Tom Quinn, Managing Director of Springmount Advisory: “Western Australia prospers when it looks to the future and builds for future demand. Twenty years from now, what the world needs is green commodities made using WAs abundant renewable resources. Just like it did with iron ore in the 1950s and gas in the 1970s, WA should look to the future and build what the world will need, not sunsetting industries like gas that are already past their peak.”
-ENDS-
Media contact
Kate O’Callaghan on 0406 231 892 or kate.ocallaghan@greenpeace.org
Lucy Keller on 0491 135 308 or lucy.keller@greenpeace.org
A report from Greenpeace Australia Pacific and Springmount Advisory reveals the untapped green economic opportunity for Western Australia in a declining Asian gas market, which also offers a genuine solution for decarbonisation in Asia.
Is Western Australia clinging to a fading gas industry while a thriving green future passes it by? As major Asian trading partners rapidly pivot away from volatile gas imports toward cheap solar and battery storage, this report exposes a high-stakes choice: risk becoming stranded in an oversupplied fossil fuel market, or harness WA’s unmatched sun and wind to lead the global clean energy transition.
Summary
From Gas to Green: Building Western Australia’s Future State reveals that Western Australia (WA) faces a critical juncture as falling Asian gas demand, geopolitical gas supply volatility and accelerating renewable energy deployment undermine the long-term economic viability of gas exports. By harnessing its world-class wind and solar resources, the report demonstrates that WA can execute an orderly phase-out of gas and pioneer a green commodity export economy that could generate $987 billion in economic value by 2060, create 24,000 ongoing jobs, and drive a 9.6% reduction in global greenhouse gas emissions.
Key Findings
- Gas demand is falling in Asia – WA can no longer rely on gas exports: Gas demand in core Asian markets fell in 2025 and is projected to continue to decline in 2026. Legislated energy plans in Japan, South Korea, and China now prioritise renewables and nuclear over gas.
- Asia is increasing renewables, importing gas just gets in the way: Evidence from markets like Thailand suggests that gas imports are increasingly crowding out cheaper renewable energy investments and battery storage rather than displacing coal, locking in more emissions over time.
- Green commodities offer a real solution to decarbonise Asia – this is a major win for WA: With world-class renewables, WA can lead Australia’s green commodity exports, which by 2060 could be worth almost a trillion dollars ($987 billion) and support a genuine 9.6% reduction in global emissions.
Recommendations to WA government
Recommendation 1: Plan an orderly gas phase-out aligned with a trading partner pivot plan
Implement a managed, orderly phase-out of gas exports aligned with trading partners’ decarbonisation pathways, rather than waiting for demand to collapse, by:
- Developing and implementing a staged phase-out of gas facilities aligned with feedstock supply expiry or typical end of facility lifespans.
- Committing to no new gas development for gas expansion, including Browse and Kimberley fields.
- Developing new, reciprocal trade relationships with existing gas trade partners, structured to progressively replace gas exports with green commodities – integrated with recommendation 2.
Recommendation 2: Develop an integrated green commodity export strategy, positioning WA as a global green iron manufacturing hub
Establish an integrated green commodity export strategy that immediately prioritises green iron development, positioning WA as a global green iron manufacturing hub, by:
- Committing to green commodity export targets to give industry and investors a clear demand signal.
- Prioritising green iron as the lead sector within the broader green commodity strategy, given WA’s iron ore endowment and first-mover potential.
Recommendation 3: Reject false solutions such as carbon dumping (CCS) and blue hydrogen
Reject carbon dumping (also described as carbon capture and storage, or CCS) and blue hydrogen as viable decarbonisation technologies, and prioritise green hydrogen and proven renewables for clean energy and fuel production by:
- Excluding blue hydrogen projects (and CCS-dependent projects) from all government support programs.
- Requiring existing hydrogen-based production (including ammonia, methanol, synthetic fuels) to have clear, near-term transition timelines to switch to green hydrogen production.
What you can do
Together, we can push for a prosperous green future.
You can help by:
- Sending an email to Environment Minister Murray Watt and Prime Minister Anthony Albanese, calling on them to reject Browse.
- Sharing this story to help more Australians understand what’s at stake.
- Encouraging your friends and family to take action.
REPORT: “From Gas to Green” Building Western Australia’s Future State
Cleaner cooking projects in the UN carbon market will have to set aside a share of their credits to insure against the risk that the trees they save are lost to fire, drought or logging, after the market’s regulator rejected calls to exempt the sector.
The requirement is part of a new rulebook that the Paris Agreement carbon market regulator – the Article 6.4 Supervisory Body – approved last Friday for programmes that aim to cut emissions by distributing new and cleaner cookstoves in regions that still burn wood or charcoal for cooking.
These are the UN mechanism’s first rulebooks for cookstoves, one of the carbon market’s most popular credit types and also one of its most criticised for overstating climate benefits.
They consist of two methodologies: one for programmes that aim to cut greenhouse gas emissions by distributing more efficient cookstoves that burn less wood or charcoal, and a separate methodology for projects shifting households to lower-emissions cookers running on electricity or liquid petroleum gas (LPG).
Mkhuthazi Steleki, the South African chair of the Supervisory Body, said “this decision gives cleaner cooking projects a new pathway under the UN carbon market, with clear rules to ensure that each credit represents a real and credible emission reduction”.
Industry and NGOs lobby to weaken UN carbon credit rules in “coordinated” push
In copycat submissions and a private briefing to government officials, the groups have opposed a proposal to tighten safeguards for emissions offsets
